Second hand shopping is certainly not a new idea. From second-hand to Allegro, consumers are always willing to find opportunities.
Consumers are also increasingly interested in reducing their consumption and helping to combat the negative environmental impact. This led many retailers to enter the recommerce market, which refers to the purchase and sale of second-hand goods. Whether it is full-time or additional work, recommerce can be a good option for potential resellers interested in the market – so understanding what is and where it is going, is a wise move.
Recommerce, called also reverse trade, is a sales model of goods used or previously owned. From second-hand shops to luxury boutiques, there is a whole spectrum of companies using the recommerce model. There are many digital markets that have transferred the resale from stationary stores to online operations.
Second hand clothing has the largest share of the recommerce market, which is expected to reach more than $51 billion by 2023. Other popular sectors of recommerce are household articles, collectors’ items and art.
Now you can resell almost everything if it is in good condition. This makes the resale market so attractive. However, the online resale market focuses on specific subjects, including:
Although Recommerce appears to be a completely new traffic due to the growing number of brands, retailers and markets launching closed-loop platforms and programs, the online resale market pioneers are reaching a decade ago.
Several companies have recognized the potential of the recommendation and have decided to create their own online platforms or markets offering consumers a wide range of used products. Since then, the awareness of recommerce has increased, and consumers trust that they sell their unwanted goods on online platforms.
The success of Recommerce reflects the growing empowerment of Millennials and generation Z which they perceive buying second-hand clothes differently than older generations. The stigma previously associated with buying used products is lost in the younger generations, so the Recommerce growth can refer to a generational change in thinking that relates to the desire to buy more second-hand goods, and then supporting the circular economy.
Shops attract more engaged communities around collectors’ items, creating a transparent market where people can see the exact prices of the goods they sell. For the first time, everyone had access and opportunities, which resulted in new iterations of this popular business model from those who grew up and observed it blooming.
Why will markets such as VINTED flourish in this business model? Is it just a fashionable, cost-effective, sustainable one or a combination of all these elements explaining the current growth? Tomorrow’s personalization and travel is expected to be even smarter, more engaging and more trusted than it is today.
So, what are some of the factors that were contributed to this growth?
I also have some tips for those who want to deal with Recommerce.
The trend of the recommendation will continue. Younger generations are passionate about the environment and sustainable development as a whole one. Therefore, the recommendation will continue to play an important role in their consumer decisions. In fact, almost one third of the generation Z expects to buy one used piece of clothing, a shoe or an additive in the following year.
As a result, it would not be surprising if more niche companies came from recommerce in a creative way. For example, using more recycled materials or taking old shirts and printing them again to tell a new narrative.
A large part of recommerce is supply and demand. The Internet opens the possibility to find something very wanted, no longer produced or not available.