Recommerce and the Role of Ecommerce Returns
We break down how brands and retailers can use their ecommerce returns to join the $200+ billion recommerce market and boost sales, reduce costs, and attract new customers.
The recommerce industry has experienced tremendous growth in recent years, with its global market value estimated at $195 billion in 2021 and expected to reach $289 billion by 2027. This growth can be attributed to the rising popularity of sustainable shopping practices, as well as the need for consumers to save money. In fact, 93% of Americans surveyed revealed that the increasing cost of goods has led them to shop more for secondhand products. Studies even show that Gen Z and high-income consumers are the most likely to shop for pre-owned items, with 65% and 90%, respectively, reporting that they do so.
As a result, many retailers across various product categories have begun exploring the recommerce market to increase sales, lower costs, promote sustainability, and attract new customers. However, one common challenge faced by brands is sourcing inventory for their resale channel.
At Arrive, we advise brands to consider what will generate the highest revenue impact for their business when selecting inventory sources. While taking back pre-loved products from customers may seem like a sustainable option, it is not always economically feasible as it can be time-consuming to accumulate inventory from customers, and the value of the product is often significantly depreciated due to extensive use.
Instead, we recommend that brands consider leveraging ecommerce returns as a lucrative source of inventory for their resale channel. This is because:
Returned products are of higher quality and require little to no refurbishment, making them higher-value items.
There is no shortage of returns, providing a constant stream of inventory for resale.
Brands can save money on disposal costs by eliminating the need to pay for landfill space. On average, 80% of products that are taken back from customers are unsellable, resulting in significant disposal costs (let alone big sustainability issues).
Arrive's Returns to Recommerce™ model offers a solution to the $750+ billion worth of products that are returned each year. Our operational back-end technology streamlines the identification, cleaning, grading, and order fulfillment process for brands, allowing them to quickly and efficiently sell returned products through a fully-branded ecommerce storefront.
If you're interested in learning more about how Arrive can help your brand optimize ecommerce returns and drive revenue through the recommerce market, click here to get in touch.