Recommerce brings CX into the circular economy

Is the combination of second-hand products and digital marketplaces the future of ecommerce? Anna Noakes Schulze explains why a growing number of consumers think so

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Signage at Selfridges London

In recent years, the circular economy has emerged as a powerful global megatrend reshaping how products are produced and consumed. The traditional linear “take-make-waste” approach is giving way to a more sustainable circular approach that seeks to maximize the product lifecycle by reusing, repairing, refurbishing and recycling.

This seismic shift will require brands to reconsider how they design products and experiences; not just for customer one, but for customer two, three and so on.

Secondhand markets have a long and storied tradition, but digital platforms and marketplaces have transformed recommerce from niche to mainstream in just a few years. Recommerce reports published in 2024 from eBay, ThredUp, OfferUp and others highlight the exponential growth of resale with a projected market size of US$350 billion by 2027. Many of the world’s biggest retailers are transitioning to more circular business models. UK retailer Selfridges (pictured) expects to earn half of all sales from resale, rental or repair by 2030.

In fact, according to Cross Border Commerce Europe recommerce is projected to grow five times faster than the overall retail market by 2025. 

This growth of recommerce has demonstrated consumers’ enthusiasm for sustainability and increasing willingness to buy and sell goods in resale marketplaces. As many as 85 percent of consumers are now buying and/or selling secondhand items, with roughly 24 percent of Gen Zs and Millennials making monthly purchases.

While fashion has been one of the most popular sectors of recommerce, the market is increasingly diverse with 77 percent of transactions belonging to other categories, including electronics, furniture, home goods, sporting goods, outdoor equipment and others. 

To understand the popularity of recommerce, CX professionals need to understand consumer motivations for shopping resale markets. Consumers put price at the top of their considerations, followed by quality, product selection, convenience and transparency. In fashion, there is also a demand for distinct, one-of-a-kind pieces that can’t be easily found in stores.

To meet the growing demand for resale goods, several CX challenges must be overcome:

  • Verifying authenticity, especially for luxury goods
  • Quality control and standards for item condition/wear
  • Compete and accurate product information, including images, materials and dimensions
  • Setting the right price, balancing affordability and profitability
  • Reducing friction by streamlining browsing and searching
  • Adapting technology tools like AI and AR to personalize product recommendations and enhance the shopping experience
  • Facilitate efficient returns – and prevent if possible
  • Communicate to help customers understand the benefits and impact of shopping sustainably

The appeal for consumers is clear, but brands will have a steep learning curve to meet high customer expectations. Julie Lejeune, head of Germany/Austria & UK for Vestiaire Collective says: “The idea is really: how can you buy a secondhand product with the same ease that you buy a firsthand product?”

Shopping resale might have been embarrassing once but it’s now a badge of pride for a new generation of eco-friendly consumers who care about sustainability and reducing waste.

Recommerce allows forward-thinking brands to develop new circular revenue streams and create more value for customers while helping rather than harming the planet. It’s a win for all sides and a powerful signal that the future of commerce is circular.

Explore more about Recommerce at TheNTWKSummit 2025, From Linear To Circular Business Models, taking place May 22 in Barcelona.

 

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