What is recommerce, and why should it matter?

Finding and buying a refurbished or repaired item that you could not purchase always makes us feel like we have found something extraordinary. 

Usually, this was trawling websites like eBay or Facebook Marketplace, hoping we find a desired item in the size or specifications we need.

Today, consumers face many challenges, including supply chain issues, out-of-stock notifications, and environmental and sustainability concerns. Recommerce has emerged from the circular economy as a viable and highly profitable solution that services the interests of consumers and aids brands in attracting new business growth.

Although it has become popular over the years for its features which provide a robust collaborating platform, there are unavoidable drawbacks, like difficulty in migration and user customisation issues whenever a new release comes to market and its somewhat clunky feel per se.

What is recommerce?

Recommerce is a category of the e-commerce market focused on reselling used, repaired, and recycled consumer goods. It has become a profitable way for brands and companies to find new markets and sell refurbished or repaired stock like electronic goods, furniture, white goods, and fashion apparel. 

Recommerce is not a new market; reselling used goods to consumers or businesses has existed long before the beginning of the internet. What is new is that brands not embracing circularity are closing themselves off to other markets and reducing their stock losses - using modern digital solutions like buybacks or trade-ins is unique in the approach. Moreover, what is more, the brands themselves are also involved in these resales.
Moreover, sustainable goods have been taking up a larger market share. In the USA alone, recommerce sales hit 178.7 billion USD in 2022 and are projected to reach 244.7 billion USD by 2025! Consumers want more affordable and environmentally friendly products - and recommerce meets this demand.

Recommerce benefits the environment

Sustainability is a top priority for millennial shoppers. Forty-five percent state they will not buy from non-sustainable brands. Millennials and Generation Z make up a massive demographic of buyers looking for better options for the planet. 

This age group of 16-24 (81%) and 25-34 (80%) years old are the primary drivers of recommerce platforms and resale programs. Given their growing awareness of buying sustainable products from recyclable materials, all industries must take significant steps to attract them, or they will lose them to brands that will.

Brands should see this as an opportunity to update their strategy and build sustainable brand loyalty. 

Access to quality brands and products for all

A unique advantage of recommerce is that it allows consumers to buy goods they desire at their levels of affordability. 

Want a more modern iPhone but cannot afford the retail price? No problem!

Are you thinking of a new luxury handbag? Search online, and there is plenty to buy for secondhand prices.

These options enable a whole new market of customers to buy expensive brands, as the resale value of many items stays stagnant. 

Moreover, prices can rise with goods like furniture, fine art, or trainers. The main challenge to luxury brands becomes more about how to keep their standards high when considering recommerce, which is why leading brands partner with external partners to guarantee quality, safety, and intellectual property.

Recommerce – the sustainable choice

The number of garments being produced is doubling each year. Nevertheless, only 13% of what is manufactured is recycled, and an astonishing 87% of the total fiber input used for clothing is ultimately incinerated or sent to landfills. 

Within Germany, the average citizen purchases sixty pieces of clothing per year. Unsurprisingly, brands release 24 new collections yearly in the fast fashion trend to sustain consumer purchasing. Next is the UK, where 13 million clothing items are thrown away daily!

Reducing the industry's environmental footprint will aid in reducing the amount of CO2 produced. As a report prepared by McKinsey & Company and Global Fashion Agenda demonstrates, it saves 13 million tons of CO2 equivalent when the circular economy grows.

Taking care of products' long life helped many brands solve the above-described problem.

Furthermore, not only brands wish to reduce their environmental footprint. Much has also changed in buyers' attitudes, particularly young customers. These young consumers are now entering their prime earning potential and are already somewhat accustomed to sharing ownership, using companies like Uber and Airbnb. 

These brands not only benefit from caring about environmental issues; and the positive PR that it attracts through sustainable responsibility, but they also open up endless possibilities to sell previously owned items, including out-of-stock or seasonal products, via a secondary market.