How do recommerce platforms make reselling used products efficient? This article focuses on three key areas: managing trade-ins, returns, and authenticating products. It also highlights the role of Millennials and Generation Z is driving the re-commerce industry. And finally, we’ll talk about how recommerce can improve your business. So what makes reselling used products so attractive to Millennials and Generation Z?
Managing returns on recommerce platforms
Reselling used products has many advantages for business owners, consumers, and society. Used products offer a unique opportunity for consumers to buy good products at lower prices through online resale platforms such as Backflip. This business model also helps protect the environment as used items are not disposed of, or increased costs. In addition, many consumers prefer to purchase items with a high resale value, which can help prevent pollution. However, some challenges are involved in successfully managing returns on recommerce platforms.
Online sales can cause multiple returns, especially when free shipping is offered. As a result, many eCommerce shoppers buy multiples of an item to return it later. Managing returns on recommerce platforms can help you avoid the hassles of multiple returns and maximize profit by reducing waste.
Managing trade-ins on recommerce platforms
Recommerce is the process of buying, refurbishing, and reselling used goods. Depending on the product category, recommerce may provide a thin margin or no profit. Logistics can also be expensive, so brands should know their margin structure and total loaded cost before getting started. Reselling used products efficiently begins with a clear understanding of the process.
Brands also benefit from recommerce. Almost half of the consumers who bought used items would consider purchasing new products from a brand that partners with a secondhand platform. And when compared to a brand that builds its resale platform, its initial costs would be as high as $50 million. In addition to resale volume, brand partnerships also create a stamp of approval for used products, which is essential for luxury brands.
Authenticating products on recommerce platforms
Recommerce platforms are a great way to sell secondhand items and quickly catch on with consumers. Reselling used products on these platforms can be efficient and profitable for brands. In addition, authenticating products makes it easier for customers to buy used products because there’s no need for them to be returned to a retail store. They can also be sold to consumers as refurbished products, cheaper than new ones.
Consumers are increasingly becoming more eco-conscious, putting more importance on reducing their environmental footprint. During product manufacturing, natural resources are consumed at their highest levels. Consequently, brands have been forced to rethink their business models. In the US, 12200 stores will close by 2020, forcing many to sell their products online. Some brands have responded to this trend by launching resale websites to sell their products.
Millennials and Generation Z driving recommerce
Reselling used products is a growing trend that has largely been untapped by Baby Boomers and Millennials. But that’s about to change. With Gen Z consumers taking over the market, this trend has caught wildfire. Of course, millennials are the most likely to buy secondhand goods, but Gen Z is also the most tech-savvy generation. Its high-speed internet access, social shopping apps, and mobile phones are changing the landscape for reselling used products.
Millennials are the generation that shook the retail industry in the last decade. Now in their 30s and 40s, millennials are driving the economy. Gen Z, or zoomers, are the next generation, and they have radically different preferences than millennials. So if a brand wants to capture this market, it must create a strategy that caters to Gen Z.