Sharpei

Embracing Recommerce: A Sustainable Revolution in Consumer Habits

In a world where environmental impact becomes an increasing topic of discussion, the concept of recommerce has emerged as a transformative force, reshaping the way we consume goods. Before diving in, it is important to understand what “recommerce” really is. Short for "reverse commerce," recommerce encourages the second-hand use of products, offering a sustainable alternative to the traditional model of production and consumption. With that, the recommerce industry is gaining momentum, presenting both economic opportunities for entrepreneurs and ecological benefits for the planet. Here is why you should join the movement.

Consumption Habits

To understand the need for recommerce, it is important to get a grasp on the consumption habits of people worldwide. Most people buy items, use them a couple times, and then never use them again. How often does this happen? A lot. Take a look at these scary stats.

80% of items bought on Black Friday are thrown away after several uses
Online shopping generates 4.8 times more packaging waste than offline shopping given the same amount of spending
In June 2020, global retail e-commerce traffic reached a record 22 billion monthly visits and a staggering US$26.7 trillion in sales

Despite the disheartening stats, there's a silver lining. Recommerce is on the rise, offering a sustainable alternative to traditional consumption habits. Here are some encouraging trends:

69% of the second-hand items sold in 2023 were everyday essentials in good condition.This shows that consumers are willing to buy used items as long as they are in good condition and useful for their daily lives.
77% of recommerce occurs in categories such as electronics, furniture, household products, home improvements, sporting goods, outdoor equipment, and car parts. These categories represent areas where consumers can find great value in high-quality used products.
76% of buyers believe that the stigma around second-hand shopping has decreased. This is a positive sign that attitudes towards recommerce are changing, which could lead to greater adoption in the future.
The recommerce market is projected to reach $276 billion by 2028. This projection underscores the potential for continued growth of recommerce and its increasing importance in the global economy.
85% of buyers bought or sold second-hand items in the past year, with 27% doing so for the first time. This indicates a growing acceptance and participation in the recommerce market by consumers.

These statistics emphasize the growing popularity and significant impact of recommerce in the global market. As more individuals and businesses embrace this trend, recommerce is expected to continue its upward trajectory, making a substantial contribution to a more sustainable future.

Overstock

There is so much we can say about the problems of overstock, and if you’re a retailer, we’re sure that you have faced this challenge. Simply put, overstock is defined as the inventory that isn’t sold, collects dust in a warehouse, and loses money for the business. With returns being one of the leading reasons for overstock, here are some hard-hitting facts:

$816B of inventory returned every year (US 2022)
9.5B pounds of returns end up in landfills, that’s equal to 10.5k fully loaded Boeing 747’s
25M metric tons of CO2 is emitted from returns, about 5.1 million cars driven for one whole year.

Want to learn more? Here is an interesting read: https://www.gosharpei.com/blog/recommerce-and-its-impact-on-traditional-manufacturing

Technology and recommerce: A winning combination

Technology is revolutionizing recommerce. With specialized online platforms and mobile apps, buying and selling used products has never been easier. This has allowed recommerce to reach a wider audience, facilitating efficient and secure transactions.

Technological innovations have enabled platforms like eBay, ThredUp, and Poshmark to connect buyers and sellers of used products worldwide. These platforms offer an intuitive user experience, secure payment methods, and efficient logistics systems to ensure that products reach their new owners in perfect condition.

Additionally, technology has enabled the creation of advanced algorithms and artificial intelligence systems that can recommend products to users, optimizing the shopping experience and increasing conversion rates. These systems can analyze user shopping behavior, identify preferences, and suggest products that match their needs.

Another important aspect of technology in recommerce is traceability and transparency. Blockchain technologies are being used to provide a detailed history of products, including information about their origin, previous ownership, and repairs performed. This not only increases consumer trust but also facilitates the authentication of high-value items such as luxury goods.

Social impact of recommerce

Recommerce not only benefits the environment but also has a positive social impact. It provides employment opportunities in second-hand stores and supports charitable organizations through product donations. By buying second-hand products, consumers contribute to a virtuous cycle that benefits the entire community.

Recommerce stores, whether physical or online, create jobs in areas such as inventory management, logistics, repair, and customer service. These job opportunities are especially valuable in disadvantaged communities, where they can provide income and valuable skills.

Additionally, many charitable organizations operate second-hand stores as a source of funding for their social programs. For example, entities like Goodwill and The Salvation Army use the revenue from their stores to support employment initiatives, job training, and social assistance programs. This way, recommerce not only promotes environmental sustainability but also contributes to social welfare.

Recommerce also has a positive impact on social inclusion. By offering high-quality products at affordable prices, it allows people from different socioeconomic levels to access goods that might otherwise be out of reach. This reduces economic disparities and promotes greater equity.

Ethics and transparency in recommerce

Recommerce companies prioritize ethics and transparency. From the origin of products to working conditions, honesty and integrity are fundamental. This not only builds trust among consumers but also strengthens business relationships.

Ethics in recommerce is manifested in several ways:

Transparency about the origin: Companies clearly inform about the source of the products, including details about their condition, repairs made, and any defects. This allows consumers to make informed decisions and trust the quality of the products they purchase.
Fair Working Conditions: Recommerce companies ensure that their employees work in fair and safe conditions. This includes paying fair wages, providing employment benefits, and respecting workers' rights.
Social Responsibility: Many recommerce companies are committed to supporting social and environmental causes. This can include donating a portion of their revenue to charitable organizations, participating in recycling initiatives, and reducing their own carbon footprint.

Transparency also extends to business practices. Recommerce companies are often open about their processes, policies, and goals. This transparency not only strengthens consumer trust but also promotes a culture of responsibility and sustainability throughout the industry.

Questions to Ask Yourself

As we see, there are great dangers in abiding by our current consumption habits. If you are a customer, here is how you can change that. Ask yourself the following questions:

🤔 1. Do you really need it? Before making a purchase, ask yourself if it's a genuine necessity. Reducing consumption is one of the most effective ways to cut your ecological footprint.

🫴 2. Can you rent it? For items you don't need frequently, consider renting or borrowing. This can save resources and money.

🏄 3. Can you get it second-hand? Buying second-hand or vintage items not only gives new life to old things but also reduces demand for new manufacturing.

💎 4. Is it made well? High-quality, durable products may cost more upfront, but they can last longer, saving you money in the long run and reducing waste.

⚒️ 5. What is it made from? Choose products made from sustainable materials or ones that are easily recyclable. This promotes responsible sourcing and reduces landfill waste.

♻️ 6. Can it be recycled? Prioritize items that are recyclable, and be sure to recycle them properly. This closes the loop in the product lifecycle and minimizes waste.

In addition, think about shopping with companies that are leading in re-commerce. Here are some industries and a few noteworthy companies.

Sports Equipment

Sports equipment sector caters to fitness enthusiasts and adventure seekers alike. In recent times, the industry has witnessed a significant shift towards sustainability and accessibility, with innovative platforms like Carbosports emerging to redefine the way people engage with sports equipment. With the help of Sharpei, Carbosports now offers the resale and rental of sports gear, from tennis rackets, to bikes, and also skis, which allows their customers to pursue their active lifestyle, sustainably.

Baby Gear

Parents, current or future, how long do you use baby cribs for? 1 year? Where does that crib go when your baby is all grown up? This is where innovative solutions like those offered by Nonotu come into play. Nonotu, and similar brands, recognize the temporary nature of baby gear usage and offer a sustainable alternative through rental services. By allowing parents to rent baby cribs and other essential gear, Nonotu addresses the challenge of short-term use and provides an eco-conscious solution.

Musical Instruments

Recommerce has struck a chord in the musical instruments industry, offering aspiring musicians and enthusiasts an affordable and sustainable path to explore their passion. By renting instruments with Musicopolix, your guitar, keyboard, and/or drum set will let you play without recommerce the burden of long-term ownership.

E-Bikes and E-Scooters

Do you live in a big city? How do you get around? Consider electric mobility solutions, provided by companies like GoBlue, which provide an eco-friendly and cost-effective alternative for your daily commute.

Take a look at this bicycle graveyard…

If you represent a business, adopting a “circular” mindset not only aligns with eco-conscious consumer preferences, but also positions your brand as a champion of responsible and ethical practices. Here are some valuable tools and strategies to help your business extend product life cycles:

Second Hand Offerings

Before reintroducing second-hand items into the market, ensure a refurbishment and quality-check system. Invest in scrupulous employees to guarantee that each pre-owned product meets your brand's standards. This will enhance the product lifetime value, customer experience, and the reliability of your re-commerce offerings.

Recommerce is not just a passing trend; it is a revolution with the power to change the world. From promoting sustainability to supporting local communities, recommerce offers a variety of benefits. By choosing recommerce, you contribute to building a greener and brighter future.

While second-hand offerings can be great for your business, more opportunities can come from partnering with Sharpei. Regardless of the industry you are in, starting a profitable rental business is easier than ever. On top of the new revenue streams you will unlock, we want to re-emphasize the sustainability in re-commerce, as well as the benefits of renting vs. owning. Interested in starting your rental business? We’re here to help. Drop us a message. Join this exciting journey and be part of the change towards a more sustainable world.

Embracing Recommerce: A Sustainable Revolution in Consumer Habits

In a world where environmental impact becomes an increasing topic of discussion, the concept of recommerce has emerged as a transformative force, reshaping the way we consume goods. Before diving in, it is important to understand what “recommerce” really is. Short for "reverse commerce," recommerce encourages the second-hand use of products, offering a sustainable alternative to the traditional model of production and consumption. With that, the recommerce industry is gaining momentum, presenting both economic opportunities for entrepreneurs and ecological benefits for the planet. Here is why you should join the movement.

Consumption Habits

To understand the need for recommerce, it is important to get a grasp on the consumption habits of people worldwide. Most people buy items, use them a couple times, and then never use them again. How often does this happen? A lot. Take a look at these scary stats.

80% of items bought on Black Friday are thrown away after several uses
Online shopping generates 4.8 times more packaging waste than offline shopping given the same amount of spending
In June 2020, global retail e-commerce traffic reached a record 22 billion monthly visits and a staggering US$26.7 trillion in sales

Despite the disheartening stats, there's a silver lining. Recommerce is on the rise, offering a sustainable alternative to traditional consumption habits. Here are some encouraging trends:

69% of the second-hand items sold in 2023 were everyday essentials in good condition.This shows that consumers are willing to buy used items as long as they are in good condition and useful for their daily lives.
77% of recommerce occurs in categories such as electronics, furniture, household products, home improvements, sporting goods, outdoor equipment, and car parts. These categories represent areas where consumers can find great value in high-quality used products.
76% of buyers believe that the stigma around second-hand shopping has decreased. This is a positive sign that attitudes towards recommerce are changing, which could lead to greater adoption in the future.
The recommerce market is projected to reach $276 billion by 2028. This projection underscores the potential for continued growth of recommerce and its increasing importance in the global economy.
85% of buyers bought or sold second-hand items in the past year, with 27% doing so for the first time. This indicates a growing acceptance and participation in the recommerce market by consumers.

These statistics emphasize the growing popularity and significant impact of recommerce in the global market. As more individuals and businesses embrace this trend, recommerce is expected to continue its upward trajectory, making a substantial contribution to a more sustainable future.

Overstock

There is so much we can say about the problems of overstock, and if you’re a retailer, we’re sure that you have faced this challenge. Simply put, overstock is defined as the inventory that isn’t sold, collects dust in a warehouse, and loses money for the business. With returns being one of the leading reasons for overstock, here are some hard-hitting facts:

$816B of inventory returned every year (US 2022)
9.5B pounds of returns end up in landfills, that’s equal to 10.5k fully loaded Boeing 747’s
25M metric tons of CO2 is emitted from returns, about 5.1 million cars driven for one whole year.

Want to learn more? Here is an interesting read: https://www.gosharpei.com/blog/recommerce-and-its-impact-on-traditional-manufacturing

Technology and recommerce: A winning combination

Technology is revolutionizing recommerce. With specialized online platforms and mobile apps, buying and selling used products has never been easier. This has allowed recommerce to reach a wider audience, facilitating efficient and secure transactions.

Technological innovations have enabled platforms like eBay, ThredUp, and Poshmark to connect buyers and sellers of used products worldwide. These platforms offer an intuitive user experience, secure payment methods, and efficient logistics systems to ensure that products reach their new owners in perfect condition.

Additionally, technology has enabled the creation of advanced algorithms and artificial intelligence systems that can recommend products to users, optimizing the shopping experience and increasing conversion rates. These systems can analyze user shopping behavior, identify preferences, and suggest products that match their needs.

Another important aspect of technology in recommerce is traceability and transparency. Blockchain technologies are being used to provide a detailed history of products, including information about their origin, previous ownership, and repairs performed. This not only increases consumer trust but also facilitates the authentication of high-value items such as luxury goods.

Social impact of recommerce

Recommerce not only benefits the environment but also has a positive social impact. It provides employment opportunities in second-hand stores and supports charitable organizations through product donations. By buying second-hand products, consumers contribute to a virtuous cycle that benefits the entire community.

Recommerce stores, whether physical or online, create jobs in areas such as inventory management, logistics, repair, and customer service. These job opportunities are especially valuable in disadvantaged communities, where they can provide income and valuable skills.

Additionally, many charitable organizations operate second-hand stores as a source of funding for their social programs. For example, entities like Goodwill and The Salvation Army use the revenue from their stores to support employment initiatives, job training, and social assistance programs. This way, recommerce not only promotes environmental sustainability but also contributes to social welfare.

Recommerce also has a positive impact on social inclusion. By offering high-quality products at affordable prices, it allows people from different socioeconomic levels to access goods that might otherwise be out of reach. This reduces economic disparities and promotes greater equity.

Ethics and transparency in recommerce

Recommerce companies prioritize ethics and transparency. From the origin of products to working conditions, honesty and integrity are fundamental. This not only builds trust among consumers but also strengthens business relationships.

Ethics in recommerce is manifested in several ways:

Transparency about the origin: Companies clearly inform about the source of the products, including details about their condition, repairs made, and any defects. This allows consumers to make informed decisions and trust the quality of the products they purchase.
Fair Working Conditions: Recommerce companies ensure that their employees work in fair and safe conditions. This includes paying fair wages, providing employment benefits, and respecting workers' rights.
Social Responsibility: Many recommerce companies are committed to supporting social and environmental causes. This can include donating a portion of their revenue to charitable organizations, participating in recycling initiatives, and reducing their own carbon footprint.