The resale of oversize consumer goods is undergoing a transformation that is fueling revenue growth, promoting customer loyalty (and acquisition) and accelerating environmental protection. C2C and B2C resales are expected to hit $64 Million by 2024 vs. $28 billion a few years ago. Recommerce merchants are growing 20-times faster than the broader retail market and 5 times faster than off-price retailers.
What are the factors driving this exponential economic growth? Younger consumers (including Millennials) who are entering their prime earning potential are favoring a sharing over on owning economy – think of Airbnb. This shift in consumer patterns coupled with the rise in the environmental consciousness of consumers and brands alike is creating the perfect storms for resellers. Also, the rise in online shopping (up 300% since the beginning of the Pandemic) has given consumers the ability to shop overstock, discontinued, sample, and gently used products from their home. Unfortunately for retailers, the return rate for online purchases is 13-18% as opposed to 6-8% of in-store purchases – thus creating an increased urgency in finding an avenue of resale for these returned goods. Enter resellers like One World Resale.
Liquidating excess inventory via alternative distribution channels is a trusted mechanism whereby these retailers recover a portion of the loss in sales, decrease their operating expenses, and expand into different market segments while preventing brand or channel confusion.
All of the numbers agree that Recommerce is changing the way business is being done across markets, and very significantly in the oversized furniture and home goods markets. The realities of a circular economy start to become even more apparent when one looks at how the markets are basically shifting on their own vastly due to consumer choices. To negotiate this new landscape, companies are turning to companies with proven resale records like One World Resale. At this point retailers should actively be following the consumer’s lead and pushing recommerce initiatives by and through the use of resellers like One World Resale, to stay relevant in today’s retail world.