Recommerce will grow over 10% per year for the next few years and is the fastest growing category of retail, according to a new report from the AIM Group. The research firm defines recommerce as the resale of used goods by and to consumers, retailers and marketplaces:
“Recommerce is the sale of products such as fashion and smartphones that are either secondhand, end-of-line or old stock that cannot be sold as new through usual channels. It also includes products that have been bought and returned.”
The Recommerce Intelligence report notes that in some categories (verticals), sales of secondhand and refurbished goods are growing faster than the sale of new products. “For example, a CAGR of 10% is predicted for global secondhand fashion compared to about 3% for the total apparel market. And Ikea says the market for used furniture is growing 2.3 times faster than the market for new furniture.”
Ikea told Recommerce Intelligence that it resold nearly a half-million used Ikea products last year. It’s moving away from a linear model of making new products and selling them and going to a hybrid model where it is combines new sales and resales of used furniture.
Emma Herrod, Managing Editor, explained, “The rapid growth in recommerce is driven partly by the fact that buying secondhand no longer carries a stigma, and in many cases is considered a better alternative than buying new products.”
The AIM Group is making the special report available for download at no cost in conjunction with launching its new Recommerce Intelligence service, a weekly email that follows the primary markets of recommerce including refurbishment and repair; inventory management software; reverse logistics; payment processing; and escrow providers.
It will also hold its inaugural conference on recommerce next year called Recommerce Buzz.
