In recent years, recommerce has become an increasingly popular way for ecommerce brands to build both their brand and community. Simply put, recommerce is the selling of secondhand or pre-owned goods.
While this concept may be new to some, the idea of buying and selling secondhand goods is actually quite old. Recommerce platforms like Poshmark, Depop, and Mercari have made it easier than ever for people to buy and sell secondhand items from the comfort of their own homes.
And for ecommerce brands, it's never been easier to set up a recommerce program for your store. In this post, we'll go over why you need recommerce and how your brand benefits from it.
What is recommerce?
Recommerce is the buying and selling of goods that have been previously owned. This includes clothes, shoes, accessories, furniture, electronics – anything that has already been used by someone else.
The key benefit of recommerce is that it allows customers to purchase items at a discounted price without sacrificing quality. Recommerce also encourages customers to purchase more items from your store, as they know they can resell them when not in use.
How your brand benefits from recommerce
There are many benefits to incorporating recommerce into your ecommerce business model. For one, it can help you tap into a new customer base.
By taking advantage of recommerce opportunities, businesses can increase their brand awareness while making a positive impact on the environment. Recommerce can be an effective way to reduce waste and build customer loyalty, all while staying true to your company's core values.
People are more likely to buy from brands instead of individuals
People who are hesitant to buy secondhand goods from a stranger may be more likely to purchase from a reputable brand they already know and trust. The recommerce market is rapidly growing and with it comes an increasing demand from shoppers for reliable recommerce stores. This is where brands come into play.
By buying from recommerce stores that are owned and operated by brands, shoppers can be assured that the quality of the items they purchase will be held to rigorous standards. Furthermore, since recommerce stores that are owned by brands are backed by corporations, shoppers can count on efficiency when it comes to fulfillment, shipping, and returns. All of this makes people more likely to buy from recommerce stores that belong to brands as opposed to individual recommerce sellers.
Recommerce builds brand loyalty and community among your existing customer base
People who frequently buy and sell on recommerce platforms are often highly engaged with the brands whose products they are buying and selling. Recommerce is rapidly becoming an essential part of many successful businesses, as it gives customers a chance to express their loyalty and stay connected with their favorite brands.
By enabling a recommerce model, companies can engage with returning customers, ensure satisfaction and provide rewards for faithful relationships. Rewards for recommerce activities help create brand familiarity which encourages more customers to join the recommerce ecosystem and recommend products to their friends and family. This way recommerce not only helps build customer loyalty but also reinforces the core values of a company, creating an engaging community around its brand.
Recommerce can help you reduce waste and boost your bottom line
When done right, recommerce can help you extend the life cycle of your products, which is good for both your customers and the environment. Recommerce is an emerging, eco-friendly business model that allows companies to recirculate their unwanted products, components, and materials back into the market. Reusing goods rather than dumping them reduces waste while helping businesses recoup their investments.
With recommerce, companies can recoup more of their initial investment by reselling goods--previously seen as "unsellable"--for a fraction of the original cost. This not only helps decrease environmental impact but also boosts profits for businesses large and small. Overall, recommerce can be a sustainable and financially rewarding venture for organizations willing to take the leap.
Tips for running a successful recommerce program
Operating a successful recommerce program requires proactive and strategic approaches. Here are a few tips to help you get your program off the ground:
- Make sure customers know about your recommerce options. Promote recommerce on your website, social media channels, and in-store locations to increase awareness of the program.
- Ensure quality control. Quality assurance is essential for running a successful recommerce program. Be sure to thoroughly inspect all items before reselling them and provide customers with detailed descriptions of the product's condition.
- Partner with logistics providers who specialize in recommerce solutions. Doing so will ensure that your goods are delivered quickly and efficiently, while also reducing your carbon footprint.
- Invest in data-driven insights to inform strategic decisions. Analytics and metrics can help you identify areas of opportunity, better understand customer preferences, and develop targeted marketing strategies to drive more sales.
The future of recommerce
The recommerce industry is becoming increasingly important as it offers a reliable and sustainable way to shop. It allows consumers to purchase the necessary items while recirculating used products to reduce environmental impact. It’s estimated that recommerce will grow significantly in the future, with more consumers choosing to shop for second-hand goods.
As recommerce continues to evolve, businesses must adapt their strategies to stay ahead of the competition. This includes developing technological advances, strategic partnerships, and holistic marketing campaigns, all of which can help recommerce stores enhance their sustainability profile for customers committed to responsible shopping. With recommerce set to become even more influential in our daily lives, we can expect its future trajectory of growth and innovation to be thrilling.
Recommerce provides an opportunity for companies to manage the lifecycle of their products better while also helping them save money, increase profits, and create a more positive image for their brand.
As the industry continues to grow, businesses should take the necessary steps to ensure their recommerce programs are efficient and successful. With the right strategies in place, companies can reap the rewards of recommerce for years to come.
How Cross-Store Selling grows your Shopify store
Want to know the open secret to growing your Shopify store? It’s Cross-Store Selling. With Cross-Store Selling, your brand can sell products from other stores and vice versa.
Sell your products on other brands’ websites
With Carro, we have a directory of the biggest brands for you to partner with. This means they’ll sell and market your products to their customers. But if you can’t decide which brands are the best fit, we have a tailored recommendation service where we introduce you to brands so you can begin working together.
The best part is you don’t have to pay for products like you would with traditional wholesaling. This allows you to choose different SKUs to see what complements your existing product catalog.
"Take my word for it, if you install Carro, you are going to see what I’ve seen. Which is a dramatic increase to average order value, especially on orders that contain Carro products, which for us is over 80% increase to AOV."
Ryan Pamplin, Founder & CEO of Blendjet
Virtual inventory makes fulfillment easy
Brand partnerships are not like wholesaling. With Carro, you don’t have to buy products from your partners. Instead, orders are automatically sent to your partner brands so they can handle fulfillment themselves.
“Before we joined Carro, we had put our company on the market. We thought we needed capital to expand our traditional wholesaling. Now, we’re able to meet our goals without having any cash come out of pocket. We’re tripling and quadrupling the numbers of units that we move because we have access to so much more inventory.”
Amy Richardson-Golia, June & January
Find new bundling & upsell opportunities to increase AOV
Perhaps the most exciting reason to leverage Cross-Store Selling is that it’s the best way to grow your Shopify store in the long run. By working collaboratively with other brands, your brand will set itself up for success. Your Shopify store will become THE destination for your niche.
One of the best reasons to shop on Amazon is convenience. Being able to buy everything you need in one place is a powerful motivator. Wouldn’t you love it if your Shopify store was the go-to place for your customers’ needs?
"In addition to a nice contribution to the bottom line, it was also one of the most highly-engaged social posts for the year."
David Krimper, Director of Shopify, Manduka
To learn more about how Carro can help your Shopify store grow, check us out on the Shopify App Store.