The eCommerce space has undergone radical changes over the past few years. Especially after the COVID pandemic, we have seen a significant shift in consumers’ behavior and purchasing patterns.
People are reluctant to spend much on clothing and other material things. Instead, they’re looking for cost-effective ways to shop. Some want to get rid of extra things they own as they take up too much space. Hence, they’re looking for platforms where they can make money.
eCommerce challenges have led to a trend called ReCommerce. While the concept has existed for some time on platforms like eBay, it has picked up pace in the last year or two. ReCommerce is especially getting popular among Millenials and Gen-Z customers as they prefer cost-efficient ways to look fashionable.
What is ReCommerce?
ReCommerce (also known as Resale Commerce) is a unique retail concept in which you can sell or buy pre-owned items at a reasonable price on online marketplaces.
The idea behind ReCommerce is to ensure you can make money from items you own – but no longer use – than letting them go to waste. At the same time, someone who has a taste for such things but doesn’t have enough budget can easily buy them.
The concept of ReCommerce has emerged from brick-and-mortar thrift and resale stores. But with the advancement of technologies and the rising prominence of the internet, many Recommerce platforms have emerged.
How Does ReCommerce Work?
Whenever a person owns an item they no longer need, they can sell it on online marketplaces in two ways:
- Directly mail the item to the online marketplaces for a payout. Marketplaces like Real Real, Depop, and Poshmark allow you to do that.
- List the item on the marketplace. From there, the person needing it can buy it. The marketplace will charge you some commission from your profit in that case.
Platforms like Amazon also offer resale options.
People can resell a few items on online ReCommerce platforms: branded clothes, shoes, designer handbags, books, antique items, electronic gadgets, glassware, paintings, etc.
How Popular is ReCommerce in 2022 & Why?
With an estimated $64 billion in 2024, ReCommerce is one of the fastest emerging trends in the eCommerce sector. ReCommerce merchants are growing 20-times faster than the broader retail market. You can also gauge the popularity of ReCommerce platforms from the fact that the popular ReCommerce platform Rent The Runway has over 11 million members.
Here’s why ReCommerce platforms are so popular:
- Youngsters believe in sharing over owning. Hence, they prefer to resell products they no longer use for profit than keep them stacked in their home.
- Consumers prefer used goods at a discounted price over new products that are beyond their budget.
- Powerful marketplaces like eBay, ThreadUp, and Craigslist have made selling used products much more effortless.
- Over time, consumers have become environmentally conscious. Hence, they prefer reselling used products rather than disposing of them.
What are the Benefits of ReCommerce?
1. A Cost-effective Option
Second-hand items are often more affordable. Also, customers are not trading quality for affordability. So, they save money but also get a product that would last. (I recently bought a Paula Hawkins book from Poshmark – and it’s almost new.)
2. Promoting Sustainability
ReCommerce also has a significant impact on the environment. By reusing products, customers can reduce the demand for creating new ones. It further reduces the need for raw materials, brings down energy consumption, and lowers the carbon footprint and the emission of harmful gasses. This way, by purchasing items from ReCommerce platforms, they can also save the environment.
3. Encouraging Recycling & Conscious Consumption
ReCommerce often encourages people to reuse and recycle products instead of just disposing of them. It also motivates them to buy second-hand items at a much more affordable price than they will spend on new products. These two things are good for our society and the environment in the long run.
4. Saving space
There are times we find our closets overflowing with items we longer need. They cover extra space, but we also find it difficult to adjust the new items. However, by reselling these items, we can keep our closets from overflowing and save a lot of space.
5. Accessibility to Unique Items
The best thing about online ReCommerce platforms is that they help us find the items we couldn’t otherwise find anywhere else. They don’t list typical dime-a-dozen products. You can find each unique item on these platforms, from unique antiques and fashion accessories to rare copies of books. It makes them stand out in the eCommerce space and attracts customers to them.
How can Online Stores Benefit from ReCommerce?
ReCommerce can be an excellent option for online stores that have to dispose of a lot of products just because they’re slightly damaged, not in sealable condition, or no longer in trend. You can create a reCommerce section on your website and resell these items at a discounted price. As a result, you will save these products from going to waste, and you can earn some money.
Here are a couple of things to resell these products better:
- Use high-quality images to showcase and promote your merchandise.
- Keep the product description catchy and to the point.
- Be honest and disclose if the product is returned or out of season.
- Know your audience before selling the product so that you market to the right customers.
- Attract customers through goodies and discounts.
- Fulfill orders quickly as delivering them late will invite negative reviews and the ire of customers.
- Have a strong return policy in place. Make sure people can easily return and replace items if they don’t like them.
Business Challenges for ReCommerce stores
The quality and authenticity of the products is one of the biggest worries of ReCommerce buyers. Hence, making the buyers trust the products you’re selling on your resale platform will be your biggest challenge. Besides that, here are a couple of other challenges that you would have to overcome:
- Process the return or replacement of products while ensuring extra costs don’t add up
- Delivering products on time to ensure customer satisfaction
- Efficiently negotiating the prices to ensure neither you nor your customers bear the loss
- Recouping the value of your product through reselling.
- Marketing the products to right set of customers
In a Nutshell
It is not wrong to say that ReCommerce will play a crucial role in the coming years. With time, people are becoming less interested in owning modern first-hand objects, and they would now rather buy a slightly-used item at a discounted price.
So, it’s time you consider reselling used, out-of-season products rather than just disposing of them. This way, you’ll do a favor to the environment and people who can’t afford them because they’re expensive.
Is there anything else about ReCommerce you want to know? Please share in the comments.