The large number of people looking to spend less on clothing and businesses that are providing cost-effective ways to shop are on the rise. With the increase of unemployment rates since COVID-19, more consumers are learning new ways to save money and spend less on material things they don’t need.
If you’re hoping to begin selling secondhand clothing and other items online, here is the ultimate guide to recommerce and factors that drive growth.
What Is Recommerce?
Recommerce, also known as resale commerce, is defined as a retail market that specializes in reselling pre-owned items such as clothing, electronics, books, and more.
However, the market of reselling used goods is no new concept. In 1897, a man invented the idea of resale in his basement, asking residents to collect used clothing from the neighborhood. Thrift shopping was launched from that point, although not many people knew about it until years down the road.
Although thrift shopping was looked down on and considered to display a low-income status, by the 1930s, thrift stores began to enter mainstream shopping habits. As a result of the Great Depression, the pre-owned retail market boomed as more people donated their used clothes to refresh their wardrobes.
Although resale commerce has been around for over 100 years, the digital recommerce space was introduced in the ’90s with websites offering used goods at affordable prices.
With the boost in technology and the speed of the internet, recommerce is quickly becoming an even contender in the retail market. According to a study, resale merchants are growing 20 times quicker than more traditional retail merchants.
In fact, popular brands are jumping onboard the resale train as they begin to offer consignment options to allow consumers to buy their clothes at a reduced price.
Benefits of Recommerce Programs
There are many benefits for consumers to take advantage of when shopping in the resale market. For example, recommerce provides easy access to high-end clothing at a reduced price.
The internet now enables customers to search for and purchase wholesale thrift clothing that they can afford. This new consumer-focused business process allows customers to avoid additional charges on their favorite clothing brands while also donating their clothes to clear their closets.
Recommerce programs may offer customers extra discounts to save even more money, helping the economy one coupon at a time.
The Right Audience
As more people become aware of their spending habits, they tend to be more conservative in how much they’re willing to spend on their “wants” and focus instead on their needs.
Beyond the typical assortment of clothes that are needed to live daily, additional new outfits and accessories are seen as high priced and superfluous. As a result, people begin to look for good pricing on clothing which tends to drive them towards resale businesses.
The average thrift shopping consumer age is a Millennial hoping to save money on clothing and spend their earnings on rent and other essentials.
However, secondhand children’s clothing is quickly rising in recommerce due to parents consistently recycling their growing child’s clothes.
As we become more environmentally conscious as a nation, thrift shopping has turned into an easy way to save money and help others create a greener lifestyle.
Due to the fact that most companies make their clothing out of non-biodegradable materials, clothes that are thrown away make their way into landfills, producing more pollution for our earth. Donating and recycling clothes and other goods is a great way to live an eco-friendlier lifestyle.
In addition to helping the earth, the resale market also contributes to community development. Most recommerce businesses use their profits to support communities in need, boosting the quality of life for many people.
A great way that recommerce drives growth is that it provides consumers the ability to spice up their wardrobe with new pieces that they would not otherwise find in major retail stores. People are looking for quality items with a price that does not break their bank.
In addition, customers are always looking for new ways to express themselves. Buying different styles of clothing is an excellent way for consumers to learn more about their identity.
People prefer to be trendsetters rather than following mainstream fashion. Thrift stores provide unique and exciting articles to add to their collection that may no longer be produced in the general market.
How Recommerce Boosts the Economy
The recommerce market boosts the economy in more ways than one. As thrift stores boom in communities, they bring more business and profit to those areas. As such, thrift shops are gaining popularity in the employment sector and thus require more employees to help build their business.
The resale market needs plenty of people to sort through donations to determine their quality and put usable pieces out on the floor for consumers to purchase.
As more people receive jobs, they can spend their money on other goods and services, funneling more profit into the economy. As the economy grows, so does the well-being of the community.
Essential Factors in Recommerce Business
As the recommerce industry continues to boom in its success, there will always be a demand for its services. As more and more generations donate their unused clothing, the resale market will always have a dominant space in the shopping industry.
Giving back in community outreach programs is important in order to connect potential donators and customers to your business. Resale stores need to build a reputation and show compassion, as that is part of their mission.
Recommerce makes a significant positive impact on how consumers find and purchase clothing and other goods, paving the way for communities to connect and thrive.
With over 100 years of positively impacting the world, resale commerce shows no signs of slowing down. The competitive edge resale stores have on paying little to nothing to streamline their inventory can often help turn resale stores into profitable business ventures.
Resale stores are uniquely positioned to give back to their communities in ways that more extensive retail brands struggle to do.
Entering a new business can be a challenging task, but with determination and hard work, you can do it. If you’re looking for a new business venture that is rapidly growing and dominating in its market, a resale establishment is a great route to take that helps save the planet, one community at a time. With this ultimate guide to recommerce and factors that drive growth, you’re ready to begin your new business.