Recommerce—the idea of finding ways to conduct sustainable business practices and help save the planet by reusing products—is big business and big news. Statista states that the market was worth more than $188 billion in 2023.
What can this mean for entrepreneurs looking to start a business but might have little money? Or for companies that want to place sustainability and eco-friendly practices at their core? Well, as long as the items in your workplace still have value, they’re worth saving, and here is why.
What is recommerce – and how can it work for entrepreneurs?
Recommerce means’ resale commerce’—purchasing and selling used or refurbished products online.
Entrepreneurs can use it to purchase goods they need for a fledgling startup or to save money on an existing business that needs to tighten its belt or make considerable savings to run effectively.
Recommerce practices can effectively give new life to products that otherwise would have been discarded. Instead, once a business phases out a usable product (equipment, supplies, furniture, etc.), it can resell it to make some money back.
Recommerce perfectly complements notions of sustainability—the practice of developing and running business operations while preserving the environment and helping the planet.
Below are just a few ideas of the types of recommerce products that could help entrepreneurs cut costs, upgrade on a budget, and thus help their business:
· Electronic devices: Sourcing pre-owned computers, laptops, and smartphones for use by employees can make considerable savings rather than buying new ones. Sometimes, ‘preloved’ only means an ‘open box’: The buyer can purchase it at a significant discount while the product remains in new condition.
· Reading materials: Printed educational resources, like books or manuals, often have an extended shelf life. In a recommerce setting, one can purchase those used items at a much lower price.
· Office appliances: Every office needs equipment. And again, opting for second-hand goods (breakroom essentials like fridges, microwaves, and kettles) comes with considerable savings.
· Furniture: Office furniture, such as desks and chairs, can be sourced at discounted rates, both locally and online. Furthermore, buying high-quality vintage pieces is more cost-effective than ordering new low-quality furniture. And, if a timeless piece of furniture was well-cared for in your office, it can then be traded in at the end of its life again.
What are the pros and cons of reusing in a corporate environment?
Savvy entrepreneurs rarely pass up the cost-saving benefits of recommerce, especially if it helps curb their carbon footprint and help the planet.
Likewise, brand consumers are always looking for bargains and adopting sustainable lifestyles. These days, more and more consumers opt for sustainable brands or buy preloved items because they recognize the obvious bonuses.
The benefits of recommerce for entrepreneurs
For one, recommerce allows businesses to improve their sustainability practices. It can significantly reduce waste–especially when it comes to electronics.
Secondly, it creates a circular economy. The act of reusing creates a much more sustainable economic model, where products have a longer shelf life and are properly recycled.
As discovered above, recommerce is cost-saving. In competitive marketplaces, where entrepreneurs often face hidden and unexpected expenses, recommerce can help improve their financial solvency.
And as a result, recommerce makes a business more profitable. Lower expenses can translate into more room for growth. Having liquid assets is as essential as opening a business bank account. Business owners must have a dedicated ’emergency fund’; recommerce can often help them grow it.
The potential drawbacks of recommerce
1-Running quality tests and checks. Entrepreneurs must ensure they check all preowned items thoroughly before purchasing them (if possible). Preloved tech especially bears the hallmarks of wear and tear, which affects performance.
2-Lack of warranties. Used and reconditioned products have relatively short warranties and are often sold as-is. As a result, business owners might have fewer options when upgrading costly office equipment on a budget.
3-Logistics can be tricky. Recommerce logistics can be more complex. For example, shipping, returns, and product exchanges are not always an option.
Recommerce techniques to give your business a boost
Let’s examine how recommerce can make a big difference in a business.
When employing recommerce strategies in your business, look at what you buy, and account for industry trends. Consumer behavior is also an important factor to consider. It might not be worth taking the plunge in some instances, but in others, you might make significant savings. For instance, if you’re considering tech products – look at the market size, growth predictors, competitors, and demand. These will help you determine whether recommerce is the right move.
Don’t put all your eggs in one basket! Work with several suppliers to have options. Sources consistently supplying good quality preowned products are worth building a lasting work relationship with. Forge agreements with different vendors and marketplaces to expand your buying and selling options. Negotiate discounts: Spending less promotes economic sustainability, which is particularly important for new businesses.
Conclusion
Recommerce is an exciting opportunity for entrepreneurs to go green and cut costs. It often involves reusing products that would otherwise have ended up in landfills. While corporate social responsibility is paramount, one must recognize the financial boost it can give to a new brand or even a well-established company.
There is plenty of potential as long as you buy from trusted suppliers and have the means to test products beforehand. Advisors from MarkNtel are already predicting that the global recommerce market will reach a CAGR (compound annual growth rate) of 19.22% between now and 2028. The time has come to find new ways of merging eco-friendly, mindful production business practices that benefit everyone.
