The (online) sale of returned and/or second-hand products is also called “Re-commerce”. By using Re-commerce, premium brands can achieve 2 important strategic advantages:
Attract new consumer groups.
By offering returned products for sale, it is possible to attract new consumer groups that you are not addressing with your new items. Consumers who buy second-hand products do so mainly for sustainability reasons or due to budgetary constraints.
The green and sustainable character of returned goods appeals in particular to the younger Generation Z and millennials as sustainability is high on their list of priorities. But also among other age groups, sustainability is an increasingly important criterion in the purchase process.
Consumers who cannot afford to buy brand-new products from a premium brand due to a restricted budget would normally opt for a B-brand or a cheaper alternative. Now, these consumers can purchase your products at an appropriate discount and gladly accept minor damage to the product.
Build a sustainable brand image.
By re-selling returned items, you build up a sustainable brand image. You show that you give something back to the world, contribute to the circular economy and reduce waste in e-commerce. A sustainable brand image does not only attract new consumers but is also very important for investors and journalists, customer satisfaction and makes you as an employer more attractive for new employees. In a market where competition is fierce and increasingly more brands are starting to sell online, a positive brand image is more important than ever.