With two-thirds of consumers willing to pay more for sustainable products, it is no wonder why the most attentive companies are making efforts towards sustainability, supporting environmental causes and modifying production processes. Recommerce is one of the best examples of a new circular economy action, and one that is rapidly gaining traction.
What is reCommerce?
Recommerce, also known as reverse commerce, is a business model based on sales and marketing activities that involve the reuse or recirculation of products. Simply put, it consists of the selling and buying of previously owned products - new or used- online or in physical stores. The phenomenon began with technological products but is spreading to other product categories.
There are different types of recommerce.
If we consider the type of product, we have:
- Pre-Owned recommerce, which is the resale of carefully used items that still have retained some sort of their value;
- Refurbished recommerce, which is the process of buying used, broken or damaged products to repair or restore them and then resell them;
- Recycling recommerce, which is the process of breaking down products into their parts and recreating new ones from them.
Instead, if we consider the type of exchange, we have:
- Informal market, in which consumers sell second-hand products to other consumers in person (flea markets) or online (marketplaces such as eBay).
- Trade-In & Recommerce Platforms, in which specialist service companies buy used goods, refurbish them, and resell them online.