Re-commerce, also known as reverse commerce, is the selling of previously owned, new or used products, mainly electronic devices or media, through physical or online distribution channels to buyers who repair, if necessary, then reuse, recycle or resell them. Re-commerce is not a new concept, but it is gaining more popularity and relevance in 2024, as consumers become more aware of the environmental and social impacts of their consumption habits, and as technology advances to enable more efficient and convenient re-commerce platforms and services.
Why is re-commerce a potential field in 2024?
There are several reasons why re-commerce is a potential field in 2024, both from the demand and supply sides of the market.
Demand side: Consumers are increasingly looking for ways to save money, reduce waste, and support sustainability. Re-commerce offers them an opportunity to buy high-quality products at lower prices, extend the lifespan of their devices, and contribute to the circular economy. According to a survey by Recommerce Group, a leading European company in the re-commerce sector, 74% of consumers said they would consider buying a refurbished smartphone, and 66% said they would be willing to sell their old smartphone. Moreover, re-commerce can also appeal to consumers who are looking for variety, novelty, and customization, as they can find unique and personalized products that suit their preferences and needs.
Supply side: Re-commerce in 2024 also offers benefits to sellers, who can generate additional revenue, optimize their inventory, and enhance their brand image. Re-commerce can help sellers to recover some of the value of their products, reduce their storage and disposal costs, and attract new customers who are interested in re-commerce. Re-commerce can also help sellers to demonstrate their social and environmental responsibility, as they can show their commitment to reducing their carbon footprint, saving resources, and supporting local communities. For example, Recommerce Group has saved more than 10,000 tons of carbon, recycled more than 3 million mobile phones, and donated more than 168,000 euros to various associations since its inception.
The re-commerce market grew to over $160 billion in 2021 compared to $140 billion in 20201, re-commerce to grow close to $245 billion by 20252
Similar to social media, Americans spend around 27 minutes per day on re-commerce marketplaces
eBay reported that it sold $2 billion worth of certified refurbished products in 2024
Re-commerce is especially appealing to Generation Z and Millennials, who have purchased pre-owned products in the past 12 months at rates of 80% and 78%, respectively
How to start a re-commerce business in 2024?
Embarking on a re-commerce venture requires strategic planning and an understanding of the unique dynamics of the second-hand market. Here are the foundational steps to set you on the path to success:
1. Niche Selection
Identify your niche based on market demand, your expertise, and passion. Whether it's fashion, electronics, books, or another category, a focused niche will allow you to build a dedicated customer base and brand identity.
2. Sourcing Inventory
Develop a reliable sourcing strategy. This could involve partnerships with individuals, thrift stores, or even retailers looking to offload unsold inventory. Ensuring a consistent supply of quality items is crucial.
3. Online Presence
Establish a strong online presence. An intuitive, user-friendly website and active engagement on social media platforms are indispensable in today’s digital-first shopping landscape.
4. Authenticity and Quality Assurance
Implement a robust system for authenticating and refurbishing items. Guaranteeing the quality and authenticity of your products is vital for customer trust and retention.
5. Logistics and Customer Service
Invest in an efficient logistics framework and a responsive customer service team. A smooth shopping experience, from browsing to unboxing, is key to customer satisfaction and repeat business.
6. Community Building and Sustainability Narrative
Foster a community around your brand and educate your audience about the environmental impact of their purchases. A strong narrative on sustainability can significantly enhance brand loyalty and advocacy.
Joining Forces with the Eud Foundation: Amplifying Your Re-commerce in 2024 Venture
Partnering with the Eud Foundation - Eud International Foundation C.I.C. can exponentially enhance your re-commerce journey. As a member, you'll benefit from a wealth of resources, networking opportunities, and expert guidance tailored to the unique needs of sustainable businesses.
The Eud Foundation is not just a network but a community driven by the principles of sustainable and ethical business. By joining, you become part of a collective force, championing economic innovation and environmental stewardship.
Are you ready to embark on a re-commerce venture that's not just profitable but also purpose-driven? Join the Eud Foundation today and unlock the full potential of your business in the dynamic landscape of 2024.
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