The rise of secondhand ecommerce and marketplaces

In the last two years, the world of retail has seen a dramatic transformation. COVID-19 has been the catalyst for the ecommerce industry to go under with no hint of slowing. Based on Statista, the total worldwide sales of e-commerce over the following four years are predicted to increase to 50%, resulting in estimates to be US $7.4 trillion in 2025.

However, even for technologically proficient businesses, the task of growing still needs to be solved about ecommerce. McKinsey finds that in the United States, over 90 percent of e-commerce stores earn under $ 1 million annually in revenue despite low entry barriers for those new to the industry.

A common thread is that many companies can’t connect the dots between new trends in e-commerce and the spread. For example, the current trend of ” re-commerce,” or resales of secondhand items, is primarily driven by the challenges of global supply chains, which have led to shortages of new things and long delays in restocking. Furthermore, sales from marketplaces across the United States also skyrocketed in 2020 in the year 2020, with an increase of 45% during the initial phases of the pandemic.

As we approach the mid-point of 2022, businesses need to remain on top of their game as emerging ecommerce trends dominate the market. To ensure an upward trend, the most profitable brands know these shifts and stay agile in adjusting their business strategies. This could include introducing a new program to manage used inventory or incorporating marketplaces into an omnichannel model.

Driving B2C using secondhand approaches

The idea of buying secondhand items is familiar to those who are used to the idea of thrifting clothes and browsing the local markets for fleas. The used and preowned goods industry is beginning to become the dominant online market in particular, as the pandemic changed how consumers viewed used items in times of limited availability. In the context of peak sales, this shortage has resulted in over 6 million “out-of-stock” messages during the 2021 Christmas season, an increase of 253% in notification frequency compared to pre-pandemic circumstances.

From a corporate viewpoint, it’s now economically beneficial for companies to invest in the secondhand segment in various sectors. Based on ThredUp, the most well-known company that sells secondhand clothing, their annual report on resales says that the global market for thrift clothing is increasing and is expected to triple in 2026 compared to the regular clothing market. In the automobile sector, used cars in Ireland sell for more than the retail price, and prices have risen by 50 percent since the onset of the epidemic.

Furthermore, consumers are profiting from resales, and new opportunities are opening for anyone to sell their unwanted items online. A recent report on the resale Report of eBay polled people from the US and several European countries and found that 70% of respondents began selling secondhand items to create an income stream.

Another primary driver driving the pre-owned industry is the increasing importance of promoting the circular economy using sustainable methods. Gen Z and millennials are becoming aware of the environmental impact of their wastefulness and want to stop it, particularly in the fashion industry. They’ll even expose businesses that take part in this type of conduct.

For growing businesses wishing to adopt a sustainable approach through resales, it’s essential to go beyond traditional values-based marketing. In the current era of greater awareness, young consumers are more aware of the environment. They are diligently researching the brands they’d like to patronize even if they’re publically advertised as secondhand as well as “pre-loved.”

Ultimately, the demand for used items will likely remain for a long time throughout the present supply chain issues. It will increase since Gen Z and millennials drive buying secondhand to minimize environmental impact. Merchants must be careful about how they incorporate resales into their business models, mainly since sustainability and accountability are critical to how companies are perceived. If you want to get involved in secondhand sales, look no further to learn more about how online markets could provide a gateway into the secondary market.

The growth of online marketplaces

In light of the prior context surrounding selling on resale, it’s not surprising that online marketplaces have emerged as a vital component for many buyer-seller relationships. Marketplace internet sales accounted for most of the total worldwide e-commerce in 2021. an estimated $3.23 trillion in one of the 100 most popular marketplaces. You may also find that you’ve bought something on an online marketplace such as Amazon and eBay.

In its most basic sense, the online marketplace is similar to a traditional department store. Both are platforms that provide goods from a range of brands. Businesses and third-party sellers frequently sell on marketplaces toto market their products to a larger audience. Consumers are drawn to marketplaces due to the convenience of shopping in one place and the possibility of comparing prices among similar products.

Marketplaces also give sellers access to liquidity, which provides the expectation for sellers to connect with buyers as well as buyers can find the items they want. Companies such as Airbnb are created to manage and unify the accommodation offered by sellers instead of providing their properties similar to the traditional hotel chain to support this type of interaction. Airbnb’s success depends on its ability to share information with customers via efficient search-related customization and connect hosts to potential customers. Since liquidity functions across both sides, everybody gains from the market model in which demand and supply are well balanced.

As previously mentioned, the market for used clothing is increasing, and online marketplaces are a significant sales driver. For instance, Vestaire Collective is a market leader in reselling clothing and is a leading online global fashion business that utilizes the model of marketplaces effectively to provide a vast collection of secondhand, high-end clothing. Vestaire has realized that liquidity is a critical factor in an online marketplace’s success and uses technology to eliminate the annoyances from the buyer-seller model. As a result, the company has become highly famous and can be considered an ideal case study for businesses looking to combine resales with marketplace models.


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