What is recommerce: Definition, benefits, examples
Recommerce is booming as sustainability and affordability become consumer priorities. Learn the benefits for brands and get tips for resale success.
When it comes to parting with our beloved possessions like a favorite sweater, we experience a sense of fulfillment in giving them a new life by donating them to those in need. It’s a beautiful act that makes a positive impact. Yet we’re still captivated by the glossy allure of pristine, brand-new items.
It’s time for a transformative shift in our thinking. We must recognize the untapped potential and environmental benefits of embracing pre-owned items as a powerful and sustainable choice.
Fashion recommerce is gaining traction, but there’s room for improvement. Let’s look at two recommerce models available today as well as a new unique model that combines the best of both.
By encouraging a shift in mindset and leveraging the right technology, we can collectively drive the adoption of pre-owned items to forge a path towards the circular economy.
Consumer-to-consumer fashion recommerce
The current landscape offers several avenues for individuals to participate in the fashion recommerce movement. Platforms like Poshmark have emerged as vibrant marketplaces where consumers can buy and sell pre-owned goods.
However, while Poshmark follows a pure C2C model, certain drawbacks need to be acknowledged. For example, without a standardized verification process, trust and authenticity become concerns.
The authenticity of the products isn’t verified, and buyers have to rely on information provided by the sellers, which can vary in accuracy and transparency.
Pricing also lacks standardization, often varying significantly among sellers, leading to confusion and potential discrepancies in value.
What is C2C: Customer-to-customer model definition, benefits, tips
Learn about the C2C e-commerce model, the pros and cons for sellers and buyers, and how sellers can succeed.
B2C approach to selling pre-owned clothing
Similarly, brands like Patagonia have embraced fashion recommerce by allowing customers to trade in their used clothing and gear.
While this approach follows a business-to-consumer model and addresses trust and authenticity concerns to some extent, it introduces other resource-intensive challenges, such as:
- Adopting a B2C recommerce model requires brands invest in additional resources, such as inventory management, refurbishing facilities, and warehouse space
- Increased operational complexities, including the need for dedicated staff to manage inventory and refurbish items
- Managing unsold second-hand inventory becomes an issue, as it requires effective strategies to prevent waste and maximize the use of pre-owned items.
Green commerce and the rise of the conscious consumer
Green commerce models are growing as consumers look to reduce their environmental impact by purchasing used items or renting.
Introducing a new hybrid C2C model
An innovative recommerce model that combines the strengths of C2C and B2C and addresses the limitations of the other approaches.
Imagine a brand website that makes it possible for customers to select from their own purchase history and post items for resale directly. This streamlines the resale process and assures authenticity, as the brand’s existing relationship with customers adds a layer of trust.
To calculate a fair price, a unique algorithm considers various factors, such as the product’s age, original price, questionnaire responses, and pickup location. Reliable payment options provide secure transactions.
This hybrid C2C model brings efficiency, trust, and sustainability to the forefront of fashion recommerce.
Drilling down into the advantages:
- Efficient logistics: Trained personnel verify product authenticity during pickup. Direct pickup and delivery process ensures efficiency.
- Reduced carbon footprint with elimination of inventory management, warehousing, and photoshoots.
- Better customer experience: Customers can conveniently sell pre-owned items directly to other customers, fostering a sense of community and boosting the shopping experience.
- Sustainable inventory management: The model supports effective strategies to track demand patterns and optimize product listings.
- Reduced refurbishment: Pre-owned items can be sold without the need for extensive refurbishment or sitting in a warehouse, resulting in faster transactions.
- Scalability: The model enables brands to handle larger volumes of recommerce transactions without significant investments in infrastructure.
- Cost effective: Leveraging purchase history and eliminating the need for dedicated staff for inventory management, refurbishments, and logistics reduces costs.
- Reduce unsold goods: Direct transactions between customers minimize the challenge of managing unsold goods, reducing the risk of financial losses.
Moving closer to a circular economy
Let’s continue to celebrate pre-owned possessions, knowing that with each exchange, we’re not only reducing waste, but also fostering a sense of community and shared responsibility.
By promoting a shift in mindset and leveraging technology, we empower individuals to embrace pre-owned items, reduce waste, and contribute to a circular economy.
