Both online and offline resale sites have outperformed the whole retail sector over the last eight years. As the retail industry shifts towards a more sustainable model and the consumption preferences of millennial consumers push retailers to take more accountability surrounding sustainable efforts, thrifting is transitioning from a savvy means of saving money to being positioned as the next major fashion trend.
The question is, will traditional e-commerce platforms be able to keep up? In the post, we’re going to cover why resale commerce platforms have found major success and what exactly regular e-commerce platforms can learn to stay competitive. Let’s get started!
Ecommerce or electronic commerce is a business model that is comprised of sales management software transactions for apparel, shoes, home goods, or really anything that is hosted on the web. They are websites where customers can purchase items that are only for sale on the internet but the business functions pretty much like how any physical retailer would. Users can buy goods and schedule shipping and payments on the same platform, without the need to contact a human to assist them with their purchase. Nearly every online shopping website, small or large, follows this structure.
Describing e-commerce as simply an “online business” is rather generic. There appear to be countless possibilities for e-commerce, with new types of platforms coming up all the time.
All e-commerce retailers getting started, begin by either joining a marketplace or by constructing their own.
The main differences between marketplaces and eCommerce sites are simple, but really depend on who are and what the e-commerce business is selling. Marketplaces will connect the retailer to make millions of visitors, but they’ll also be competing for exposure against many sellers.
At its core, re-commerce is a business model that falls under the e-commerce umbrella and is built around the idea of product reuse. Re-commerce, also known as reverse commerce, it a highly accessible model of purchasing and selling previously owned goods through an app or website. These types of platforms make it easier for consumers to browse for products at a lesser price.
Many firms involved in re-commerce are invested in products that are no longer readily accessible from the retailer. Perhaps the products have been phased out or failed to sell due to a lack of demand on since the initial launch began. These retailers then refurbish those items—or release never before used products—and reintroduce them to a new consumer that skipped the original product launch.
eBay pioneered the first re-commerce market by offering gently used, quality clothing for nearly a quarter of a century with the auction and direct sales. Although peer-to-peer transactions and selling has been popular on re-commerce platforms like Poshmark and Mercari, re-commerce is now becoming a huge part of the e-commerce and omnichannel retail boom.
Just about everybody has something of worth that they can resell, which is why resale has gained traction. Online marketplaces and re-commerce brands allow consumers to mail these products to them for payment or enable them to list products on their reselling pages or mobile apps. They can then receive a commission (a percentage of the selling value) on each item sold.
In the next sections, we’re going to focus on major sales drivers for popular re-commerce businesses, starting with sustainability in the fashion industry!
Re-commerce has expanded a lot due to the growth of a few main verticals. Expanding into categories like high-end luxury has brought re-commerce from its modest roots to a genuinely global competitive market. All the way from thrift stores to the most luxurious boutiques and top designers, there’s an entire spectrum of businesses that follow this interesting re-commerce model.
Re-commerce platforms happen to be secondhand apparel dominated and usually offer one or more of the following types of resales:
As we can see here, sustainability is a major sales driver for re-commerce platforms.
The tides are turning and sustainability is becoming a greater initiative for many online businesses. Reselling provides an element of preservation, since these items are being reused and not merely discarded into trash repositories.
Though some shops are bringing in millions from this business model, the value of re-commerce goes beyond financial resources. It is about repurposing culture, while also fostering competitive sustainable practices of the industry.
Here are some more reasons why appealing to sustainable trends is becoming popular among online businesses:
In line with the simultaneous growth of conscientious buyers, the resell industry has flourished. With a market value of almost $20 billion (£15 billion) at the end of 2018 and growth predicted to increase to more than $41 billion by 2022 (£31 billion), there is no questioning the impact this market sector is having. Second-hand, pre-owned luxury, antique – no matter how you spin it, reselling has become a massive business.
Let’s take a look at some of the other top sell drivers for re-commerce platforms:
Now that we have unpacked some of the reasons behind re-commerce’s immense success over the past few years, let’s discuss some strategies an e-commerce platform can implement to gain a competitive advantage.
We hope you enjoyed reading our What E-Commerce Stores Have to Learn from Re-Commerce Websites: Top Drivers of Sales! Let’s recap all that we have covered:
The main objective for e-commerce websites should be to differentiate themselves while still appealing to the rising consumer trends re-commerce websites have found success in. It may take serious work and effort to ramp up sales, but in the end, will all be worth it.
Looking at the major sales drives of re-commerce businesses is a good place to start thinking of inspiration for how to differentiate:
Considering these drivers, e-commerce businesses should:
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