The recommerce market – focused on the resale and refurbishing of goods – is turning into a burgeoning retail sector. The latest data from Cross-Border Commerce Europe shows it has a valuation of €94 billion ($102 billion) in the European Union, with a massive expansion looming.
Moreover, the market is set to outpace traditional retail growth as consumers now focus on sustainable shopping practices and green commerce.
Recommerce market dynamics
As second-hand shopping practices become more popular, 69% of sellers in Europe used the earnings from resold items to pay bills and cover unforeseen expenses. The research also shows how recommerce marketplaces “outperform the broader retail market.”
Cross-Border Commerce says by 2025, the sector is predicted to expand five times faster than the overall retail market. This will take the 2022 valuation of €94 billion ($102 billion) to €120 billion ($130 billion) within the next year – an approximate increase of 27%.
Apart from the financial benefits of this rapidly-growing sector, it is also reducing unproductive business models, reducing landfill waste, and repurposing unrecyclable goods. The benefits extend to several markets, including books, furniture, fashion, cars, electronics and more.
The data shows the stigma around secondhand shopping decreased, with 41% of shoppers saying buying secondhand is a ‘status symbol.’ It also puts money back in their pocket, with 69% saying using the money saved to cover living expenses.
Recommerce for sustainability
Even though inflation is a constant worry for many consumers, shoppers can now maintain their desired lifestyles and deal with budget constraints, thanks to recommerce savings. In fact, 39% say it helps them make ends meet.
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But how sustainable is it, really? Well, Cross-Border Commerce says while reselling is a step in the right direction, the overall benefits could be limited if buyers who choose secondhand continue to spend money on new outfits as well.
Other factors which could impact sustainability include retailers’ rental expenses, transportation, outdated manufacturing processes, and the like.
But shopping trends continue to evolve and consumers now place more emphasis on sustainability than ever before. A separate study found that one in four consumers demand sustainable delivery options.
In addition, research by PwC shows that eight of ten consumers would pay up to 5% more for sustainably-produced goods.
ALSO READ: Retail alert: 25% of consumers demand sustainable delivery options
Leading recommerce players
Several major marketplaces stand out due to their “carbon-intensive nature of the intercontinental logistics business model,” including AliExpress, Temu, Wish, DHGATE, Joom, and Taobao.
Other leaders, such as Amazon, Zalando, and Fruugo have recorded “lower sustainability performance, resulting in a decline in their sustainability eRank.”
The most sustainable cross-border-marketplaces according to the report, are OLX, Scout24, eBay, AbeBooks, Facebook Marketplace, Etsy, Catawiki, Delcampe, Rent The Runway, Vinted, Back Market, Craighlist, and Redbubble.
About the author
Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.
