The circular economy is gaining momentum and offers an alternative to traditional consumption. ReCommerce is an example of this, which consists of buying and selling second-hand or reconditioned products. This practice responds to current environmental issues, while offering economic and social benefits. Many consumers are turning to this trend, leading to the emergence of new companies specialized in reCommerce.
What is reCommerce
ReCommerce is the practice of selling second-hand products on dedicated online platforms, responding to a growing trend for more sustainable consumption patterns. The ultimate goal of this consumption model is to extend the life of products and reduce waste. The products sold can be very diverse (clothing, shoes, furniture, electronics, etc.) and the platforms often offer secure payment and delivery systems as well as guarantees to reassure buyers.
Benefits of reCommerce
- Increased revenue: By allowing the resale of used products, companies can increase their revenue by generating additional sales without having to produce new products.
- Reduced costs: By reclaiming used products, companies can reduce their production costs by using existing materials rather than purchasing new ones.
- Improved brand image: The practice of reCommerce can help companies improve their brand image by demonstrating their commitment to sustainability and the circular economy.
- Increased customer reach: Companies can reach new customers who are looking for used products at affordable prices, and who may be attracted to reCommerce programs.
- Reduced environmental impact: By extending the life of products, reCommerce helps reduce the environmental impact of producing new products, limiting waste and greenhouse gas emissions associated with production and transportation.
The limits of reCommerce
- Limited control over product quality: Products sold in reCommerce are often used, which means that companies have limited control over their quality. Products can be damaged or defective, which can affect customer satisfaction and the company's reputation.
- Liability Risks: Companies that sell used products may be held liable for any damage or harm caused by these products, even if they are not directly responsible. This can result in significant legal costs and reputational losses for the company.
- Complexity of managing returns: Returns of products sold in reCommerce can be more complex to manage than returns of new products. Companies must be able to manage product returns in a way that satisfies customers, while limiting the costs associated with these returns.
- Impact on new product sales: If products sold in reCommerce are similar to those sold new by the company, it can have a negative impact on new product sales. Customers may be encouraged to buy used products rather than new ones, which may reduce the company's revenue.
- Implementation Costs: Implementing a reCommerce program can require significant investments in personnel, technology and infrastructure. These costs must be considered when determining the viability of the program.
The Future of Reverse Commerce
The reverse commerce market is expected to continue to grow, driven by consumer demand, but also by the rise of technologies that facilitate people-to-people exchanges, such as online platforms and mobile applications. Traditional companies could also adapt by offering take-back or buy-back solutions for their products, in order to recycle or resell them. Several companies have already implemented this sales strategy.
However, it is important to note that reverse trade will not completely replace traditional trade as there is a great demand for new and high quality products. Nevertheless, Reverse Commerce should continue to grow as a sustainable and responsible business model, offering alternatives to traditional consumption models.
