As much of the commercial world saw significant changes this year, potentially the most notable was that in the e-commerce space. From stay-at-home orders, the pandemic felt ‘round the world created a seismic shift in all things—from social, to shopping, to safety—redefining standards for every area of retail. Just as e-commerce has changed, so too has re-commerce.
In short, re-commerce is resale—and it’s booming. As socially conscious generations of shoppers lean more and more into consignment and reducing their carbon footprint, re-commerce is giving them a fast-tracked avenue to contribute to a more sustainable future. In an industry that’s been around since the mid-90s on eBay, one of the leading retailers in the re-commerce space is The RealReal, which opened its first flagship store earlier this year. Another is ThredUp, the self-proclaimed “largest online consignment and thrift store.” The secondhand giant features more than 35,000 brands on a website that displays new items with every browser refresh. What does this equate to? Endless possibilities for today’s modern-day, conscientious shoppers. Then there’s Rent the Runway, which was born out of “department stores’ worst customers” who would purchase high-end clothing only to return it after a single use. Their model focuses on renting out designer clothing and accessories for people who don’t want to invest in something permanently.
All of these signs point to the lines of traditional commerce and re-commerce are becoming more and more blurred, paving the way to a new market that’s only going to continue growing; as a market share driven mostly by millennials and Gen Z, its current value sits at about $24 billion, but it’s projected to reach $51 billion by 2023.
We’ve shared holiday shopping projections for 2020, and online sales were expected to soar. Now, in the aftermath of the holiday gifting season we enter the holiday returns season. According to the National Retail Federation, about $101 billion worth of goods sold during the 2020 holiday season will be returned. That equates to a lot of opportunity for retailers to tap into the re-commerce market, and offload their returns to a growing market. What’s the best way to do that? By partnering with a re-commerce expert, like B-Stock.
Retailers can tap into this $24 billion market with B-Stock. Nine of the top 10 U.S. retailers are currently using private, branded, online auction marketplaces to sell their returned and overstock merchandise directly to an approved group of business buyers. These marketplaces are customized, integrated, and scaled based on the retailer’s unique needs. When executed right, these marketplaces offer:
Bypass the landfill. A robust buyer base exists for just about every product regardless of condition, style, or brand. From discount store owners to online sellers to mom-and-pop shops, to local small grocers, you’ll have direct access to a large buyer pool.
If done right, a B2B offset substantial loss for returned or excess grocery inventory. By setting up an online auction dynamic where specifically targeted buyers compete to buy your merchandise, pricing goes up
With a larger buyer base made up of the right buyers you can move inventory as needed—regardless of volume, time of year, or product category.
With B-Stock, you control who sees and buys your excess inventory by marketing to a database of targeted, vetted secondary market buyers. Exposure to the right buyers ensures there is no confusion between primary (a-stock) or secondary (b-stock) channels and protects your brand
By automating your liquidation process, you’ll improve the operational efficiency of your liquidation program. No more spreadsheets. No more faxing. No more negotiating over the phone.
Increased competition through auctions means higher pricing; it also drives velocity, creates a sense of urgency and excitement. Auctions also mean no offline negotiating: you’ll be able to extract buyers’ highest willingness to pay and have real data on secondary market prices.
As we end 2020 and enter a new year and returns season, learn more about how an online, B2B marketplace help you tap into the re-commerce market by downloading our Holiday Playbook.Download Playbook