THE SUSTAINABILITY SERIES
PART 5 / 6
The Emerging Market of Re-commerce Platforms Recently there has been a rise in the emergence and popularity of online recommerce platforms, especially for fashion items. Reverse commerce refers to the practice of re-selling previously owned items. This can be done by a brand themselves, or consumers wishing to earn money back from items that they no longer want. Apps and websites promoting the re-commerce of apparel fall into three main categories: renting platforms, re-selling platforms and online thrift stores. As modern consumers become more aware of the negative environmental impact of fast fashion, many are becoming more willing, keen even, to purchase second-hand goods. Re-commerce platforms offer both brands and consumers alike, the chance to be more sustainable and regain the monetary value of products no longer being used by the original owner. This industry, although in its infancy, is growing at an alarming rate. Some online platforms allow consumers to hire luxury goods, to be returned after an agreed amount of time. This is especially useful if consumers have a special event to attend or have an interest in designer clothes, but do not want to invest in owning them. Alternatively, these platforms offer fashion-lovers the chance to frequently change-up their wardrobe without wasting clothing items that are no longer for them, â€˜in-styleâ€™. Other apps offer consumers the chance to resell pre-loved clothing items, easily and conveniently. Whereas other platforms allow shoppers to purchase thrifted or vintage finds online, offering an alternative to raking through the racks at a local second-hand store. Although these re-commerce platforms are more often used for fashion, they can also be used to resell other products such as electronics, media and household goods. Online marketplaces have now been popular for a number of years. Their popularity is only sustained as the modern consumer becomes more aware of the benefits to buying second-hand, both financially and environmentally. We understand this well, which is why we work with Galoha to help rehome returned items after they have been reconditioned.
In all, re-commerce platforms allow consumers to pass-on unwanted items, allowing them to avoid becoming waste and promoting the circular economy. For the modern consumer who has sustainability in mind, this offers a new way to shop. Additionally, items are sold for a lower cost than by the original retailers, which is often appealing to shoppers. Consumers are able to get some money back from the products they no longer want, as they would if they had returned the item in the first place. This is especially attractive to shoppers who find that the returns deadline, on an item that is new, but they do not want to keep, has passed. Brands and retailers are starting to set up their own resale sites to compete with re-commerce platforms and to keep products within their own circular economy, all the while, promoting an environmentally friendly brand-image. Aside from adopting a more sustainable returns solutions, this is just one more way in which brands are striving towards greener operations.Â In short, the rise of re-commerce platforms offers an interesting insight into how the demands of the modern consumer are changing and becoming more focused on sustainability. Brands and retailers, always chasing customer satisfaction, are having to deliver on these new expectations. By switching their operations to more greener solutions, whether this be within returns management or the resale of stock, they are rising to meet consumer demands. Finally, by examining emerging markets and shopping habits, we can better anticipate the nature of product returns within that market.
Cycleon manages your returns; whether they are sent back from retailers or consumers directly. Through our IT-solutions, we help renowned brands. Together we create the best possible return experience by optimizing each step in the customer journey. References:
https://www.techopedia.com/definition/28396/recommerce https://www.greenbiz.com/article/4-companies-pioneering-clothingrecommerce-market https://www.emarketer.com/content/female-shoppers-are-getting-morecomfortable-with-secondhand-fashion https://uk.fashionnetwork.com/news/Re-sale-market-drives-hype-around-hm-designer-collaborations,1156174.html https://searchcustomerexperience.techtarget.com/news/252472773/Rentthe-Runway-CEO-discusses-IT-challenges-CX-strategy