The business world has changed recently due to the progress of the times and also the effects of the Covid-19 pandemic. Many eCommerce businesses are growing because they are considered safer and easier. Just as ecommerce is changing, so is ReCommerce. Studies show that merchants in the ReCommerce industry grow five times faster than sellers selling new items at higher prices. Generation Z and millennials choose ReCommerce as a way to profit and save money especially if they want to shop for clothes or accessories. But, what exactly is Recommerce and how does it work? Check the explanation below!
Simply put, the definition of ReCommerce is a unique business concept where used goods are resold. This business is a business model based on the idea of reusing products that have already been used. Previously, second-hand goods such as used clothes and other items were sold limited to physical stores, but with the advent of eCommerce and the development of technology, the number of sellers of second-hand goods online has now increased and made it even more attractive. Giants like Amazon have even launched pages that cater specifically to ReCommerce purposes.
Almost everyone has something of value that they can resell, which is why selling preloved items is growing in popularity. Some ReCommerce sites in Indonesia such as Prelo or Carousell allow sellers to ship these items to customers for sale. They just need to list it on the site or mobile app. The site owner will later deduct some of the fees for their services from the sales proceeds. Of course, larger eCommerce business owners offer resale options that they manage themselves.
The resale marketplace or ReCommerce is very popular among millennials and Generation Z. People under the age of 40 have an enthusiasm for buying high-value second-hand products such as jewelry, shoes, handbags and clothing. It doesn't matter if they have to use used items as long as the items are still well-maintained and functioning properly. Of course, a lot of money can be saved by buying items from ReCommerce.
Nowadays, you can resell almost anything as long as it's in good condition. That's what makes the second-hand goods trade market so attractive. But usually ReCommerce offers certain items such as branded clothing, shoes, designer bags, antique products, jewelry, watches, electronic products, gadgets, accessories, home decorations, books and furniture and others.
ReCommence offers many benefits not only to business owners and customers but also to society and the environment. Sellers can get money from used products that are no longer new, while consumers get good products at lower prices. Amazingly, ReCommerce also has an impact on environmental sustainability aspects because products that are no longer new can be reused and not just thrown in the trash. Imagine if you often receive returns from customers and the item you receive is slightly defective or you can no longer put it in your inventory. ReCommerce will be very useful in this case.
Here are the main benefits of a ReCommerce business that you need to know about:
Sustainability. Recycling and reusing used clothing can reduce the demand for new clothing production. This way the business can reduce demand for raw materials and lower energy use in factories, as well as reduce harmful gas emissions and the accumulation of textile waste in landfills.
Saving money. Used goods are certainly sold at a lower price even at a big discount, this will help consumers save money on items that might be too expensive if they bought them in new condition.
Encouraging Consumption Awareness. With ReCommerce people will change their mindset about the value of an item and they will only be interested in buying items that have great resale value.
Support recycling. Consumers are encouraged to recycle and reuse unwanted but still good quality clothes so they don't end up in the trash.
Save space. If your wardrobe or warehouse is too full, you can sell it through ReCommerce and get more space in your bedroom or warehouse.
If you have a lot of inventory for your online store, sometimes you may find items that are in salable condition but will not sell because they are no longer in trend or in vogue. You may also have to deal with returned items, especially when a customer changes their mind or if they receive an item that is slightly damaged or not according to expectations. Selling products that are no longer salable through a third-party ReCommerce company isn't really the best idea for your online store.
You need to know that ReCommerce trading sites make money by charging commissions for every sale made on their site. If you use their services, then you will certainly lose more. To work around this, your online store can include a dedicated ReCommerce page on your own site where you can resell items at discounted prices and out of stock quickly. For example, if you have a “sale” category on your website, you can resell outdated merchandise and still make a profit without having to pay for a third-party site.
Don't forget that in order to make a profit by selling used or unsold items, you have to find an affordable shipping solution. This is an effective way to keep costs to a minimum if you are reselling “sales” items on your site. You can choose a shipping service at a lower price if you want to have a ReCommerce program in your store.
If you decide to get involved in the ReCommerce business then you can consider the following tips to make it more successful.
Showcase your wares with good quality photos.
Write detailed product descriptions in simple language and correct grammar.
Explain why you are selling the product at a discount eg if it has a slight defect or is out of season.
Offer customer service that is ready to respond to customers quickly.
Get to know your target audience
Take advantage of social media to promote the ReCommerce program in your business.
Process orders quickly to ensure customer satisfaction and avoid negative reviews.
Know the trends that are mushrooming at the moment and if the product is no longer trending, you can give suggestions to make it work perfectly.
Print labels or thank you cards to make the customer's shopping experience more memorable.
As a business person, you may not be able to avoid a product failure that results in a return. ReCommerce can indeed be a solution for selling returned products, but if you have too many returns it will certainly be bad for business. Instead of letting returns keep happening, it's a good idea to take advantage of a platform that can help you manage returns so you can save time and money and prevent damage or other unwanted things from happening. ReturnKey is a returns solution that your business can use to manage returns while helping to grow your business.