In today’s consumer market, people are purchasing more products than a decade ago, yet they are also becoming more conscious and have higher expectations regarding goods and their manufacturers. Simultaneously, there is a growing number of individuals, especially among younger generations, who are interested in the zero-waste ideology and eco-friendly activities. As a result, re-commerce, also known as reverse commerce, is gaining significance. What exactly is it, what forms does it take, and how can it impact a company’s image?
What is Online Re-commerce?
ReCommerce, also known as Reverse Commerce or a Reverse Marketplace, is the process of buying and selling used goods through specially created e-commerce platforms. Companies in this industry purchase obsolete or unwanted products, refurbish them, and reintroduce them to the market. To achieve this, they set pricing standards and use specialized software to appraise products, taking into account criteria such as age, wear and tear, and market demand.
The Development of ReCommerce in the Online Space
In the past, resale was primarily confined to local stores, classified ads, or flea markets. However, over time, the development of online platforms such as Shopify, Olx, eBay, and others has revolutionized this sector. These platforms have enabled people to sell their items to others at affordable prices, with the possibility of secure shipping to any location.
Re-commerce and Its Forms
Activities within the realm of re-commerce take various forms, which can be divided into three main categories:
E-commerce Platforms and Classified Services
These services, often for a nominal fee, offer the opportunity to post sales or exchange advertisements. They enable quick and direct transactions between the seller and the buyer, eliminating intermediaries and potentially reducing costs. They are popular among users who want to sell items they no longer need or find specific, rare products.
Trade-In & ReCommerce Services
Companies specializing in purchasing used products, mainly electronics, which are then repaired and reintroduced to the market. They operate like modern pawnshops or second-hand stores, offering users a sustainable alternative to new products. These services often provide a warranty on refurbished products, which increases consumer trust.
ReCommerce Activities Conducted by Specific Brands
Some brands decide to accept returns of their products to refurbish and reintroduce them to the market at reduced prices. Often these are products that did not meet the initial buyers’ expectations for various reasons but can still serve customers after appropriate modifications. These initiatives are also sometimes combined with charitable actions, where recovered and refurbished products are sold at charity auctions or donated to those in need.
These diverse practices not only contribute to environmental protection by reducing waste and promoting recycling but can also positively affect a company’s image in the eyes of consumers. Increasingly, consumers value brands that demonstrate social and ecological responsibility, which can translate into their loyalty and purchasing preferences.
Re-commerce – Benefits for the Company
Recommerce activities, conducted in the spirit of zero waste, can significantly influence how consumers perceive a brand, thereby increasing their loyalty. Consumers’ ecological awareness is growing, and the concern for the planet and avoiding excessive consumerism are becoming increasingly valued. When customers view a brand positively, they are more likely to repurchase its products. Such actions not only affect the company’s image as responsible and sustainable but can also attract new customers who are looking for products more in line with their ecological values. Introducing the brand as ecologically responsible can attract the attention of new people interested in a company that cares about the environment. Moreover, recommerce activities can also impact internal aspects of the company, such as employee productivity, who, identifying with the company’s values, can be more motivated and effective at work. Ultimately, the economic benefits of recommerce, such as the possibility of reselling the same product multiple times, can significantly reduce costs and increase turnover, benefiting both the environment and the company’s finances.
Re-commerce vs E-commerce
ReCommerce can be seen as a specific segment of e-commerce, focusing on the buying and selling of used products. These transactions can occur both online, through various internet platforms, and offline.
Meanwhile, e-commerce encompasses a broader range of activities, involving both new and used products. Buying a new smartphone and a used phone through online platforms are examples of e-commerce transactions. It’s important to note that while all ReCommerce transactions are a form of e-commerce, only a small portion of e-commerce qualifies as ReCommerce.
ReCommerce is interesting for several reasons, both for consumers and businesses. The main applications of ReCommerce include:
- Resale: In this form, the seller can receive cash, discount coupons, or vouchers for their goods.
- Social ReCommerce: In this marketing strategy, sellers have the opportunity to donate a portion of the value of their goods to non-profit causes or selected social initiatives.
- Eco-Trade: This variant of ReCommerce aims to manage waste efficiently and minimize environmental pollution through proper disposal of products.