Re-Commerce: A Growing Trend in eCommerce

Estimated reading time: 6 min

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Have you heard of Re-Commerce? A trend that is gaining momentum every day in eCommerce—let's take a look at what it's all about…

Also known as secondhand commerce or reverse commerce, Re-Commerce refers to practices that seek to give new meaning or added value to the purchases we make and to have a positive impact on the planet, meeting buying needs without increasing our negative impact on the environment.

Online sales will continue to expand and become firmly established in people's shopping habits worldwide—there is no doubt about that. Economically, this represents a positive boost for the growth of different industries, but environmentally it creates a major challenge regarding the use of the planet's resources and sustainability. To find a balance, Re-Commerce was born.    

Millions of consumers, along with various eCommerce platforms, are betting on this trend today—a model in which buyers acquire products in good condition that have been used by other users at more affordable prices, gaining not only value for money but also contributing to a more sustainable circular economy that avoids product waste and favors reuse.

Some Re-Commerce data 

Demand for secondhand products is higher every day—so much so that sales are estimated to grow between 15% and 20% annually over the next five years, representing an opportunity for eCommerce businesses and a breath of fresh air for the planet.

Among the main consumers of this type of product are Millennials (born between 1981 and 1993) and Generation Z (born from 1994 onward)—two generations with greater environmental awareness. So much so that 61% of millennials are willing to pay more for sustainable and eco-friendly products, while among Generation Z this figure reaches 58%, according to a GlobalWebIndex study.

Today's consumers feel a greater commitment to the planet, which requires brands to meet their expectations in order to rank among their preferred purchases. This scenario calls for new habits in the way we produce and consume, giving products a longer useful life. 

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Current human consumption means millions of products are discarded even though they are not damaged. With Re-Commerce, the owner can monetize their product and earn more than they would by throwing it away, while giving another buyer the chance to extend its use.

In this context, savings on purchase prices has been one of Re-Commerce's biggest draws, especially with branded products that consumers can buy at reduced prices. Some of the major brands already joining the Re-Commerce trend include: Amazon, eBay, Ikea, Decathlon, and platforms such as Percentil

Fashion: a sector with plenty of fabric to reuse

Categories such as electronics, home appliances, and fashion are among the industries where Re-Commerce has broad appeal. Today we will focus on the textile or apparel sector, whose environmental impact accounts for 10% of global CO2 emissions.

The textile sector has always been characterized by high levels of waste—especially now, when changing fashion trends lead to tons of clothing in good condition being discarded, moving from closets to landfills even after just a few wears. It is estimated that 73% of clothing produced annually ends up incinerated or in landfills, increasing pollution levels.

Clothing manufacturing puts heavy strain on the planet's resources: producing a single cotton shirt requires 2,700 liters of water. That is why Re-Commerce has focused heavily on this industry.

According to Global Data studies, clothing resale and donation has grown rapidly worldwide in recent years. The chart below shows how it went from moving $24 billion in 2018 to $37 billion in 2021, with expectations of reaching $51 billion in 2023—where resale is gaining relevance every day.

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Given that clothing is among the categories that usually see the largest price increases—along with household groceries, gasoline, and restaurants—Re-Commerce is making strong inroads in this category, where users can buy more affordable branded clothing, easing the strain on their wallets while allowing them to maintain a certain status.

Some figures on textile Re-Commerce in the U.S.

Studies conducted by ThredUp (an American clothing resale platform) show that 70% of U.S. consumers find it easier to buy secondhand today than five years ago, thanks to the growth of eCommerce. In 2021, 57% of them resold clothing.

Likewise, 74% said they are willing to buy secondhand apparel, while 93% are willing to buy secondhand in other product categories. In both areas, purchase preference has increased considerably in recent years.

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                                                                                                                    Source: www.thredup.com

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From the figures above, we find that:

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• 41% of consumers say that when they buy clothing, the first thing they look for is secondhand.
• 62% of Generation Z and Millennial consumers look for a secondhand item first before buying it new.
• Nearly half of consumers who bought secondhand clothing in 2021 purchased 10 or more items.
• Today's consumers use, on average, half of the clothing in their closet.
• 82% of buyers said they feel satisfaction from contributing to the environment when they purchase secondhand items.
• 56% mention that brands should play a more prominent role in caring for natural resources. 

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Re-Commerce and the future of eCommerce

Let's start by looking at what Ken Fenyo, President of Research and Advisory at Coresight Research, had to say:

"Retailers and brands have a great opportunity to use resale models to acquire younger, price-conscious shoppers, increase customer loyalty, and boost their revenue—all while doing good for the environment.

Resale is the future of retail, and it will be interesting to see which innovative companies capitalize on this opportunity."

With the above and the figures we have reviewed, we can conclude that resale is an inevitable part of the future of eCommerce—a component that must be present in online stores to meet the needs of today's Generation Z and Millennial shoppers, and of future generations that will undoubtedly be more committed and concerned about the use of natural resources. Their purchase decisions will be shaped by these characteristics and by the eCommerce businesses that offer them. 

To meet the demands of today's buyers—where responsible use of resources through sustainable or biodegradable solutions is key—not only product manufacturers and the eCommerce businesses that sell them are involved, but also the environmental impact of actions such as product packaging or geolocation, seeking to optimize delivery routes, reduce fuel consumption, and cut pollution.

Today, European brands such as Veepee offer Re-turn and Re-cycle services where they manage returns so members can resell their products, and they also collect and sort secondhand items to give them a second useful life.

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Re-Commerce not only helps reduce the use of natural resources and polluting emissions, minimize waste, and open up buying opportunities for population segments with lower incomes—it is also a new sales opportunity for eCommerce businesses that include it in their business model.

We are facing an unprecedented environmental crisis, where the economy will increasingly point toward more circular practices, pushing eCommerce businesses to reinvent their business model from manufacturing through to product delivery or returns. That, according to experts, is the future of eCommerce.

Is your online store ready for Re-Commerce? It's a good time to evaluate that… 

In this context, relying on technological and logistics solutions that optimize inventory and deliveries is also key to strengthening the resale model. With a solution like Cubbo's, eCommerce businesses can ensure more agile, sustainable operations aligned with consumers' new expectations.

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Looking for a partner to strengthen your delivery process, fulfillment, and customer satisfaction? Don't hesitate to contact us—we are the best fulfillment center for eCommerce in Mexico, Colombia, and Brazil. Just click here.

During 2021 at Cubbo:

* Our clients recorded 21% savings in operating costs

* 97.1% of products received were processed and ready to sell within 24 hours.

* We achieved a 99.7% shipping fulfillment rate

* We recorded order preparation accuracy of 99.9875%—that is, 1 error every 8,000 shipments.

* 60% of our deliveries in Mexico City were completed the same day

* We completed nationwide deliveries in an average of 1.3 days

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Sources:

Brainsins / Ecommercenews / Ticpymes / Fotoempresas / Thredup / CompromisoRSE / Trendwatching.com

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