What is Recommerce: The New Era of Retail and E‑Commerce Businesses

Recommerce is a new trend that is making waves in online retail and traditional commerce. In this article, we will explore the concept of recommerce, starting by defining what recommerce is, outlining its various types, and discussing its profound benefits.

Furthermore, we will discuss the extent of the recommerce market size, growth, and its evolution so far. Keeping the current data in perspective, we will also propose future forecasts for this growing market segment. Last but not least, we will highlight some of the popular platforms, brands, and companies leading the way in this lucrative sector of recommerce.

Are you ready to unpack the trend that is reconstructing the traditional e-commerce landscape?

What is recommence?

Every journey begins with a single step. Let’s take ours by defining the recommerce business model.

What are the various types of recommerce?

To better understand the recommerce model, we’re going to discuss its most common types quickly.

Secondhand marketplaces

These are platforms where used or pre-owned items are sold and bought. Generally, these goods are owned by the users themselves, and the marketplace acts as the intermediary that facilitates the sale.

Consignment and thrift stores

Here, items are resold through a third party—the store. In consignment stores, the owner of the item remains the original owner until the item is sold. The store then takes a percentage of the sale as commission.

Refurbished and remanufactured goods

This involves the repair and renovation of pre-used items to bring them back to near-new condition. Typically, these items are resold at a lower price than brand-new versions.

Trade-in programs

These programs enable owners to trade in their pre-owned products for a discount on purchasing a new item. It is most commonly used for trading in mobile devices, cars, and other consumer goods.

Rentals and leasing

Instead of buying a product, consumers pay to use it for a certain period. This is common with cars or appliances.

Upcycling and repurposing

This involves taking a product that is no longer needed or wanted and transforming it into a product of higher quality or value. For instance, an old ladder might be repurposed into a bookshelf, or old glass jars into decorative candleholders. This extends the lifecycle of goods and reduces waste.

Benefits of recommerce

Recommerce solutions are becoming more popular not only among environmentally conscious consumers. Here are some of the most notable benefits of this practice.

Recommerce market size, growth, and development

Due to increasing consumer awareness about sustainability and the benefits of buying used items, recommerce companies have been experiencing exponential growth, and it’s showing no signs of slowing down.

History of recommerce startups

Recommerce has been around for centuries, with flea markets, garage sales, and thrift stores being some of the earliest forms. However, in the era of technology and the Internet, the concept has evolved.

Technological advancements have changed the dynamics of recommerce, allowing for the creation of online platforms and startups that facilitate the buying and selling used products. eBay, established in 1995, was one of the early pioneers of the online recommerce industry. Since then, multiple recommerce startups like Poshmark, TheRealReal, and Swappa have emerged and thrived.

Recommerce websites on the rise

With the growth of the recommerce market, there has been a noticeable increase in the number of recommerce websites promoting sustainable shopping. Due to their convenience, variety of choices, and economic advantages, these platforms have become popular among buyers and sellers of used items.

Examples include Depop, Remix, and Mercari, among others. Many of such recommerce websites have branched out into specialized segments such as luxury fashion recommerce, vintage items, electronics, and more.

Current recommerce data and future predictions

To shed more light on the sheer size of the recommerce industry, let’s look at some real-life data.

Current data

EU recommerce market in 2022/23

In the fiscal year of 2022/23, the recommerce market in the European Union was valued at a substantial €94 billion, reflecting a thriving sector. (source)

High proportion of frequent secondhand shoppers

A vast majority, 85% of shoppers, were found to regularly engage in buying and/or selling secondhand goods. This marks the rise of an environmentally friendly and economical trend among consumers. (source)

Secondhand apparel market and Gen Z

83% of Gen Z have either already embraced shopping for secondhand apparel or expressed openness towards this emerging trend. This indicates how recommerce could soon be a mainstream shopping method. (source)

Rise in first-time secondhand shoppers

This interest in the resale market witnessed growth, with an increase of 3% from the year 2022. Significantly, 27% of these shoppers ventured into the recommerce sector for the first time, demonstrating a broadening audience for the market. (source)

Recommerce market predictions

Substantial increase in the value of the recommerce market

By 2025, the EU recommerce market is forecasted to enhance its worth to €120B, marking an impressive 60% increase in its size from 2021. (source)

Significant growth in consumer spending on secondhand goods

A projection shows that 42% of all consumers, including 53% of millennials and Generation Z, are planning to increase their expenditures on secondhand goods over the next five years. (source)

Recommerce market surpasses overall retail growth by 2028

It is expected that by 2028, the recommerce industry will globally soar to a staggering $276 billion value. Notably, this growth rate will likely surpass the overall retail market’s growth by 4.4%. (source)

Popular recommerce platforms, brands, and companies

There is no doubt you have already encountered a recommerce company. In the following sections, we are going to discuss the most popular ones.

Recommerce platforms

ThredUp

ThredUp is one of the world’s largest online consignment and thrift stores that sells high-quality secondhand clothes. ThredUp allows its customers to both buy and sell, making it a well-rounded and user-centric platform.

Reflaunt

This pioneering online platform for reselling, donating, or recycling past purchases allows fashion retailers to tap into the secondhand market. Alexander McQueen and Balenciaga are some of the high-end brands that are partnering with Reflaunt for branded recommerce practices.

Archive

Archive’s resale store based in San Francisco curates and sells luxury items, such as vintage designer clothing and accessories, online and in-store. They feature products from designers like Chanel, Louis Vuitton, and Gucci, among others.

Recurate

This repurposing platform can be seamlessly incorporated into a company’s e-commerce platform to offer more sustainable solutions. It allows the company to offer customers the chance to buy and sell secondhand items, lengthening products’ lifespans and diminishing waste in the fashion industry.

Trove

Trove provides brands with the technology, logistics, and services they need to operate their resale marketplaces at a high level. REI, Patagonia, Eileen Fisher, and Arc’teryx are a few brands that are collaborating with Trove.

Vinted

This is a peer-to-peer marketplace to sell, buy, and swap secondhand clothing items and accessories. Vinted is one of the world’s largest online marketplaces for secondhand apparel.

Wish trade-in service

This isn’t an independent platform, but rather a component of the larger Wish shopping app. It allows users to sell their secondhand items directly on the app. This not only provides a convenient method for users to declutter but also allows them to earn Wish cash they can use to shop for new items on the app.

Recommerce companies

REI’s Re/Supply

REI Co-op used recommerce to have a higher sustainability profile and attract shoppers searching for more affordable items. REI’s Re/Supply is an online used gear shop where shoppers can sell and purchase secondhand outdoor gear and apparel.

Rejuiced by Juicy Couture

Juicy Couture’s Rejuiced program, powered by Recurate, is the official marketplace for buying and selling used products from Juicy Couture.

Athleta Preloved

Athleta Preloved is a recommerce program by Athleta that sells worn women’s workout clothing. Arranged in partnership with ThredUp, the platform allows Athleta owners to send in their used clothing for resale, further promoting a circular economy.

Bergdorf Goodman’s Conscious Closet

Bergdorf Goodman’s partners with fashion resale site The RealReal to launch the Conscious Closet Cleanout campaign. When customers clear out their wardrobes and sell pieces to The RealReal, they earn store credit at Bergdorf Goodman while promoting and supporting sustainable fashion.

Hanna-Me-Downs

A recommerce company from Hanna Andersson, a children’s clothing brand, allows customers to trade clothing their kids have outgrown. The brand inspects, cleans, and repairs the pre-loved clothes, then resells them at a considerably lower price.

Canada Goose Generations

The luxury outdoor brand’s take-back program is designed to keep its well-made outerwear in circulation. The company cleans, repairs, and sells preloved pieces at a discount, reducing the overall environmental impact of clothing production and waste.

Toms (re)Wear Good

Toms, the popular shoe company, has a recommerce channel called (re)Wear Good. Customers can send their gently-used Toms shoes back to be resold, keeping them out of landfills and promoting a more circular economy.

Knihovrátok by Martinus

Slovak-based bookseller Martinus launched a secondhand book platform known as Knihovrátok. The service allows customers to buy and sell used books, expanding the life of printed materials and promoting the joys of reading.

Conclusion

Recommerce is undeniably reshaping the retail and e-commerce landscape, opening up new avenues for both businesses and consumers. With its various forms, from secondhand marketplaces to refurbished goods and repurposing, it offers multiple benefits such as environmental sustainability, cost savings, and access to rare items.

The high growth and future forecast of the recommerce market underline its immense potential. As the future of shopping evolves, recommerce platforms and businesses will continue to flourish, driving a more sustainable and circular economy.

With the ever-increasing awareness for eco-friendly practices, recommerce is looking towards a promising and prosperous future.

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