The explosive growth of eCommerce has given rise to many new selling or buying trends. With more and more people purchasing goods online, there is a market for both new and used goods.
That's where recommerce comes in!
Recommerce, or the resale of used goods, is a market that is expanding incredibly quickly, especially among millennials and Gen Z. Even though the idea of recommerce is not new, it is currently undergoing a transformation accelerating environmental protection, customer loyalty, and revenue growth.
ThredUp's 2020 Fashion Resale Market Analysis predicts that C2C and B2B recommerce will reach $64 billion by 2024. And it was just $28 billion just a few years ago.
Such massive growth in the reCommerce industry automatically marks a significant change in consumer behavior and purchasing preferences. This is the reason why a lot of reCommerce platforms are emerging online, with a focus on upcycling products for resale, mainly clothing and luxury goods.
Curiously, the entry barrier to reCommerce is frequently low. You ought to have the option of working either full- or part-time at it, depending on the products you want to concentrate on.
This article examines reCommerce and explains how it operates, essential trends to keep in mind, how to participate, crucial factors to consider, and some excellent examples for inspiration.
The practice of selling used or previously owned items is referred to as "recommerce" or "reverse commerce."
Wikipedia's recommerce definition is:
"The selling of previously owned, new or used products, mainly electronic devices or media such as books, through physical or online distribution channels to buyers who repair, if necessary, then reuse, recycle or resell them."
High-end luxury goods, fashion, apparel, electronics, and books are the most popular categories of used goods sold on the biggest eCommerce marketplaces. The following are some of the biggest online retailers, after eBay, Craigslist, and Facebook marketplace:
They all follow a similar business model where sellers can list their goods for free, and the marketplace keeps a sale price cut.
The most useful way to think of reCommerce is as a subcategory of eCommerce. ReCommerce primarily involves the act of reselling used goods on online marketplaces.
Recommerce can involve a wide range of goods. Re-commerce examples include transforming outdated goods into brand-new ones. Although clothing typically has the largest market share, other product categories like furniture and art are also steadily expanding.
As a result, it offers resellers and businesses a wide range of possibilities when they want to enter the market and benefit from market expansion.
Sharing Economy Adoption by Millennials
The idea of sharing over owning is more appealing to younger consumers who are now entering their peak earning years. Uber and Airbnb are just a few vastly successful businesses that immediately spring to mind when considering how long the digital circular economy will stay in the future.
Consumer's Desire to Get a Deal on Used Goods
Bargain hunters can purchase overstock, out-of-season, or gently used goods from reputable online retailers without leaving their homes.
Thriving Digital Markets
Today, many trustworthy, user-friendly digital marketplaces make it simple for consumers to market and sell used goods. Amazon, eBay, Rent the Runway, etc., are a few examples of powerful digital recommerce brands.
Environmental Awareness Among Both Consumers and Brands
Reselling used goods rather than throwing them away fosters an environment where customers can quickly find an outlet for the item and get discounted deals fairly. Instead of creating new products, recommerce makes recycling and reusing existing ones easier.
Keep Your Existing Customers and Foster Loyalty
Retailers enable customers to interact with a brand more by offering a simple buying process and reasonable market prices for used goods. To encourage loyalty and further purchases, current customers are urged to return used goods in exchange for store credit.
Bring New Consumers to Drive Growth
Brands and recommerce companies that handle returned items are now going further by accepting merchandise that needs to be fixed or refinished. This new offer, when carefully managed, created a financially rewarding revenue stream from the resale of the repaired goods to various customers.
A Component of the Sustainability Programme
Brands reduce the amount of waste associated with their products by extending a product's life so that it can be resold or reused in its current form or repaired before reselling it.
Because they are available at discount prices, pre-owned items allow customers to save money.
Offers Smarter Consumption
Recommerce encourages people to buy goods and clothing that are still in good condition but aren't used frequently.
Promotes a Healthier Lifestyle
The quality of life is improved by using eco-friendly products in terms of mortality, age, diseases, and illnesses. They make sure that everyone and everything on earth is safe.
Managing recommerce or resale or reseller or upcycling as a beginner is not an easy task. Here are a few of the most important factors that you must consider before starting your business:
Confused about how to manage the recommerce model? Don't worry; we have got tips for it as well.
Managing the Recommerce Model
And here are some vital words of advice to assist you in getting the most from the recommerce model:
There is no doubt that recommerce will continue.
Now is a great time to consider entering the upcycling or resale market because many forecasts anticipate increased growth in this sector. Though this is reCommerce, it's crucial to remember that customers still anticipate an eCommerce experience.
That means ensuring the goods are in good condition and with excellent packaging.
Resellers must offer upcycled and environmentally friendly packaging options to stand out to customers and ensure sustainability. Customers continue to demand that their purchases be delivered safely, with attractive packaging, and without harming the environment.
It's important for retailers with online stores to consider the possibility of reselling inventory, particularly during the off-season and after returns.
A great way to sell the products and start bringing in some money is to sell these items using your website's reCommerce functions and features. One step in that direction is the incorporation of recycled and eco-friendly packaging.
So that if they are returned, they can still be packed and sold easily.
The recommerce trend is expected to last longer.
The environment and sustainability, in general, tends to be deeply important to younger generations. Recommerce will therefore continue to be very important in their purchasing choices.
Although the younger generation may be driving the trend, a recent study found that 56% of people from all generations are willing to pay more for sustainable products.
It wouldn't be unexpected to see more customized businesses using innovative methods to enter recommerce. For instance, reprinting vintage shirts or other products to tell a new story.
To conclude, you have the chance to engage in recommerce, launch, and grow an online store, whether you're an individual or a business. Discover your interests and do some market research; you might soon be reselling!
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