digital

Why is recommerce on the rise? And why are marketplaces such as VINTED, thredUP or Poshmark thriving in this business model? Is it just trendy, cost effective, sustainable or a mix of all these that explains the current surge? Tomorrow’s personalization and customer journeys are expected to be even smarter, more immersive, more trust-enabling than they are today. The question is: Are brands and consumers ready? Here is an analysis from Olivier Carrot, Global Business Unit Direct, Retail & E-commerce.

So which are some of the factors that have contributed to this increase?

• Rise in the use of mobile devices. The accessibility of mobile devices globally has essentially contributed to the growth of e-commerce thanks to the increased reach which has consequently increased the sales. According to Aaron Orendorff – Forbes Top 10 B2B Content Marketer, e-commerce has helped businesses launch beyond borders reaching out to millions of new potential customers. By 2023, an increase of 276.9% in the total global sales in retail is projected with APAC taking the lead (source: shopify.com).
  The easy accessibility of mobile phones and internet has definitely elevated the demand of recommerce as a service. This surge has seen many start- ups joining the bandwagon to not only meet the growing demand but also to take advantage of the efficiency and scalability that marketplaces provide.
  Through the creation of an application that links second-hand products to customers, VINTED has grown from being owned by its two co-founders Milda and Justas to an organization that employs more than 450 people and unites a community of 25 million people.

• Personalized customer experiences. In reference to platforms like VINTED, personalized services that match customers preferences are highly sought after. Customers want to feel valued and there is no better way than to offer a personalized experience. Even though many consumers are in search of products being offered at discounted or affordable prices, they will not compromise on the experience. Brands are thus competing not only on price but also on offering the most memorable experience to their customers.
• Old is new again. Founded in 2009 as a swapping company for men’s shirts’ thredUP is a huge consumer marketplace that flaunts over 35,000 brands. In one of his keynotes, CEO and co-founder James Reinhart forecasts sales of upto $51 billion from the second-hand apparel market by 2023 (source yahoo.com)
  In reality, people buy twice as many clothes and wear them half as long. If one can buy a branded item for half the price of the new, why not? There is a growing trend to transform consumption through reuse. And so as to keep up with the changing environment in the retail industry, integrating a resale option in traditional retail outlets is seen to boost the overall sales. Customers are sparked to spend 21% more and visit 70% more frequently. James attributes the massive increase in the visiting percentage to the fact that second hand collection is restocked every two weeks whereas in the traditional format, new collection arrives between four to six times a year (source: www.thredup.com)

• Cost friendly. Pocket friendly purchases is a big driver in the recommerce boom. Customers are increasingly seeing the value in buying recycled brand-name products for huge discounts. “Recommerce has seen a tremendous upsurge” says Steven Bethell, founder of Bank & Vogue – a firm that specializes in the logistics of selling used goods and operates a sister company called Beyond Retro. Prior to making a purchase, many shoppers aquent themselves with the resale possibilities of items they wish to buy with the plan to resell them in the near future. The retail industry is seeing a continued shift with the majority of consumers shopping smarter.
• Sustainability. The new affluent generations like the Gen Z are more environmental and social conscious and as such, they expect brands to be more ethical and sustainable in their production processes. Fashion brands that have this audience as their customer base, are obliged to revamp their business models to be able to not only attract but most definitely also retain this segment.
  VINTED is one such brand. By investing on its brand ethos which is providing a platform for purchasing and selling of second-hand clothes. These clothes reduce the environmental impact of Co2 levels that are usually released in the production of new clothes (think water, chemicals, fertilizers and pesticides). In addition, it prolongs the shelf life of clothes that would otherwise head to the dumping sites in one or two years. It’s estimated that 600 kilograms of used clothes would lead to a reduction of 2250 kilograms of Co2 emissions, 3.6 billion liters of water saved, and 144 trees planted. (www.smartgreenpost.com).

At Webhelp, our clients are at the heart and our core objective is to ensure that their customers experience world class service in every touchpoint. The creation and upholding of a sustainable environment also go hand in hand with what our company stands for.

In our endeavor to always provide seamless interactions, we go the extra mile to guarantee that customers’ needs are met. We focus on making the purchase process in the marketplaces as simple and fulfilling as possible.  

Our flawless and memorable customer journey from order management to returns and replacements is swiftly executed with our dedicated service specialist who are located globally in the different hubs. 

And thanks to the booming second-hand industry, content management and moderation is also on high demand. Ever thought of outsourcing your content moderation? Our highly experienced offshore content moderators ensure that our clients’ brands are duly protected across their target audience. We support our clients’ to not only maintain their brand integrity, but also to shield their customers from inappropriate, aggressive or illegal content.  

Are you looking for an experienced partner who will help you take your marketplace to the next level? Get in touch to receive your tailormade solution: Olivier Carrot.