The market is changing. New consumers, especially Millennials and Generation Z, are more interested in reducing their consumption and minimizing their impact on the environment . As a result, they look for alternative options to traditional trading.
That’s one of the main reasons recommerce is growing 20 times faster than the general retail market and up to five times faster than discount retailers , a Coresight Research report revealed. This company forecasts that the total recommerce market focused on fashion will grow at an annual rate of 13% in the United States while globally it could reach 51 billion dollars in 2023.
Spain is not far behind. It is already the second European country most aware of sustainable issues, so that 6 out of 10 consumers look at the origin of the products they buy , according to the Intrum European Consumer Payments Report. Therefore, recommerce in Spain also has a bright future.
What is recommerce?
Recommerce, also known as reverse trading or secondhand trading, is the process of selling used products or excess inventory to businesses or consumers . It generally refers to the sale of previously used or owned items through online stores. Amazon, for example, has already grasped the potential of this trend and has implemented a recommerce option so that users can sell their mobiles.
Basically, it is a business model built around the idea of reusing products that are in good condition , although there are different ways to apply it. Some recommerce buy the products that people send by mail and then sell them on their platform and others allow them to promote the items by charging a commission for each sale.
The benefits of recommerce
With recommerce, everyone wins : sellers get money for products they no longer use, consumers get good items at discounted prices, and the platform gets a commission for facilitating that exchange. However, the advantages of recommerce go further:
- Promotes sustainable consumption . Recommerce offers the possibility of reusing what already exists, which reduces the need to produce new products. As a result, the industry demands fewer raw materials, consumes less energy and emits fewer harmful gases into the atmosphere, thus promoting more sustainable consumption.
- Reduces waste production. One of the main problems faced by the textile and technology industries is waste management. In the world, 92 million tons of textile waste are generated every year, of which between 75 and 85% are burned or end up in landfills, according to the Iberian Association of Textile Recycling. Recommerce allows you to reuse these clothes, reducing the amount of waste and the pollution they generate.
- Promote a more responsible purchase. Knowing that a product can get a second life through recommerce encourages consumers to choose higher-quality, longer-lasting options that they can then sell. This encourages the development of a circular economy based on a more conscious consumption that moves away from using and throwing away.
- It saves money. The products found in a recommerce are cheaper than their new counterparts, which represents an economic saving for consumers. Platforms like TheRealReal, for example, make luxury more affordable by giving consumers the ability to purchase high-quality items at lower prices.
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