Recommerce Archives - InternetRetailing https://internetretailing.net/category/dx/recommerce/ portal and research source for European ecommerce and multichannel retail Tue, 02 Jul 2024 09:48:29 +0000 en-GB hourly 1 https://wordpress.org/?v=6.5.5 https://internetretailing.net/wp-content/uploads/2022/03/cropped-logo-02-32x32.png Recommerce Archives - InternetRetailing https://internetretailing.net/category/dx/recommerce/ 32 32 UK consumers earning £7bn a year through recommerce, Yodel reports https://internetretailing.net/uk-consumers-earning-7bn-a-year-through-recommerce-yodel-reports/ Tue, 02 Jul 2024 09:48:27 +0000 https://internetretailing.net/?p=65360 Over half (54%) of UK shoppers aged 16+ are reselling items on online marketplaces creating £7bn in revenue a year, according to new research from Yodel. The survey found that the 29.5 million ‘microsellers’ across the UK are earning an average of £246 a year, with nearly three quarters (74%) having started in the last five […]

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Over half (54%) of UK shoppers aged 16+ are reselling items on online marketplaces creating £7bn in revenue a year, according to new research from Yodel.

The survey found that the 29.5 million ‘microsellers’ across the UK are earning an average of £246 a year, with nearly three quarters (74%) having started in the last five years. People in Wales are earning the most, with microsellers making an average of £538 a year, followed by Greater London (£405) and the East Midlands (£242).

With the sharp rise in second-hand selling online, Yodel has seen customer-to-customer volumes surge by more than 200% in the last two years.

Making wallet and planet friendly choices
The most common reason for buying second-hand was saving money (69%), with being more eco-friendly (37%), and buying items no longer being produced (21%), also being key considerations.

Yodel’s Microsellers Guide, which surveyed over 2,000 UK adults, also uncovered attitudes towards buying second-hand, with the quality of items considered the most important factor (56%), with low cost or free shipping (46%), the value of the item (41%), and the rating of the seller (32%) as the other top priorities.

Whilst charity shops remain the most popular way to buy second-hand items (35%), the research found that online marketplaces, such as eBay (30%) and Vinted (27%), are the next most popular destination for UK consumers looking for preloved products.

How to make the most money by selling online
For those looking to sell online, Yodel finds that flexibility and convenience are essential for buyers. Over half (52%) said if a seller doesn’t accept returns, they would not purchase from them and over a third (34%) prefer picking up parcels from local stores because it’s more convenient.

The data also shows how consumers are increasingly expecting retail level quality in packaging and customer service when buying preowned. Some 55% of respondants said they are more likely to rebuy from a seller if it arrives in high quality packaging, whilst 60% are more likely to purchase from a seller again if they follow up with them to check they’ve received their order.

Mike Hancox, CEO of Yodelcommented: “As the affordability and sustainability of our buying choices becomes more front of mind, the preowned market has boomed, and this growth has completely transformed the ecommerce industry.

“At Yodel, we’ve seen the effects of this in the significant and sustained growth in demand for our Yodel Direct delivery services, which has shifted our business portfolio from a strictly business-to-consumer operation to one that also specialises in consumer-to-consumer deliveries. 

“Our Microsellers Guide provides insights gathered from our research and experience working with platforms like eBay and Vinted to give the over 14 million UK consumers who are interested in selling online support with getting started. We’re already seeing some people turn small scale reselling into lucrative businesses and we hope with this guide, more people will be able to explore opportunities to earn additional incomes and live more sustainably.”

Learn more about reselling, recycling and rental trends in the new SustainabilityX 2024 report.

Authored by Emma Herrod, the report – launched during RetailX Event’s Spring Festival – explores how forward-thinking boardrooms are embracing sustainability, shaping positive business models, and earning consumer trust in an era of greenwashing scepticism.


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Thrift+ introduces handpicked vintage collection https://internetretailing.net/thrift-introduces-handpicked-vintage-collection/ Wed, 21 Feb 2024 10:32:26 +0000 https://internetretailing.net/?p=63629 Secondhand fashion marketplace Thrift+ has worked with vintage clothing collectors and dealers to put together a collection of 3,000 pieces from the 1960s to the 1990s. According to The Industry.Fashion, each item in the collection has been carefully selected for its quality and authenticity, and includes “statement pieces”, denim jackets, vintage dresses, and accessories. Shoppers […]

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Secondhand fashion marketplace Thrift+ has worked with vintage clothing collectors and dealers to put together a collection of 3,000 pieces from the 1960s to the 1990s.

According to The Industry.Fashion, each item in the collection has been carefully selected for its quality and authenticity, and includes “statement pieces”, denim jackets, vintage dresses, and accessories.

Shoppers can find pre-loved items from brands including Levi’s, Lee and Ralph Lauren.

Joe Metcalfe, founder of Thrift+, said: “We are thrilled to launch our incredible vintage line, offering customers a really amazing selection of high quality vintage clothing.

“We believe that sustainable fashion should be accessible and affordable for everyone. By introducing our vintage line, we hope to inspire our customers to express their personal style while making environmentally conscious choices.”

A recent RetailX consumer survey found clothing is the most sought-after secondhand item, with the growing trend of recommerce showing no sign of slowing down.

In fact, recommerce growth is 16 times faster than traditional retail, with 66% of businesses expecting the percentage of turnover from recommerce to increase further in the next three years, according to the DeliveryX Europe Top1000 report.

It also found that the European recommerce market is predicted to grow by 60% by 2025, with the value of fashion recommerce is expected to reach €37bn.

Vinted is the biggest European player in this industry, with a community of over 65mn members. It is followed by Ruby Lane and Vestiaire Collective. But it is not simply online marketplaces that are driving this recommerce revolution.

Luxury department store Selfridges has pledged that half of its interactions with customers will be based on resale, repair, rental or refills by 2030. While, H&M’s fashion resale arm simply called Pre-Loved is now available across 20 markets.

When H&M introduced its pre-loved offering, the Leading retailer noted that “second hand fashion [is] the new normal”, and predicted a move to a more circular approach to fashion.

The DeliveryX Europe Top1000 report looks at recommerce in more detail, and includes exclusive case studies showcasing how Decathlon, Seasalt Cornwall and Zara have approached pre-loved goods.

Download the full report for analysis across the whole ecommerce journey, from the supply chain to returns; logistics to longevity; and data innovation.

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New Balance introduces ‘Reconsidered’ resale programme https://internetretailing.net/new-balance-introduces-reconsidered-resale-programme/ Wed, 07 Feb 2024 10:00:44 +0000 https://internetretailing.net/?p=63474 Footwear brand New Balance has launched a resale programme on its website, enabling customers to shop for pre-loved shoes, consumer returns and “cosmetically imperfect footwear that cannot be sold as new”. As part of its wider sustainability goals, the Reconsidered offering includes an option to trade-in footwear. Consumers can send their gently used shoes to […]

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Footwear brand New Balance has launched a resale programme on its website, enabling customers to shop for pre-loved shoes, consumer returns and “cosmetically imperfect footwear that cannot be sold as new”.

As part of its wider sustainability goals, the Reconsidered offering includes an option to trade-in footwear. Consumers can send their gently used shoes to stores or by post and receive a voucher for the New Balance ecommerce site. The value of these vouchers will be determined based on the seasonality and condition of the traded-in products.

Trade-ins and returns will be “cleaned as needed,” before being added to the platform – which will be supported by resale technology company Archive.

Additionally, New Balance has partnered with circular textile company Tersus Solutions for product cleaning, fulfilment and warehousing. Tersus uses waterless cleaning technology to wash used products, and has worked with the likes of Ralph Lauren and Canada Goose.

John Stokes, director of sustainability at New Balance, said: “We know the footwear industry has a significant environmental impact, including too many products ending up in a landfill.

“There are many things that have to shift. Launching Reconsidered is one piece of the puzzle with a programme objective to help extend product life for some of our product and get the most from what is already made.”

This latest initiative aligns with New Balance’s wider sustainability efforts. It has committed to achieving its approved 1.5°C-aligned emissions reduction targets through the Science Based Targets Initiative (SBTi).

Furthermore, New Balance aims to source 100% renewable electricity for its owned operations, continue to source lower-impact materials, transition to lower carbon transportation, and actively engage with governments to enact better climate policy.

Discover more about New Balance in an exclusive company profile in the RetailX Global Sports Sector 2023 report. Download the full report for a look at  the rise of ‘athleisurewear’; the increased use of tech to gamify and add other dimensions to sport and fitness; and the continued and growing role of sportswear in fashion.

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Fenwick Bond Street hosting pre-loved Charity Super.Mkt pop-up https://internetretailing.net/fenwick-bond-street-hosting-pre-loved-charity-super-mkt-pop-up/ Mon, 22 Jan 2024 11:09:25 +0000 https://internetretailing.net/?p=63266 Fenwick of Bond Street, which will close its doors for the final time on 03 February, will host second-hand department store Charity Super.Mkt on the ground floor for a special pop-up. Held between 09-22 February, the pop-up will be spread across 3,000 square feet on the ground floor of the store. It will feature women’s […]

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Fenwick of Bond Street, which will close its doors for the final time on 03 February, will host second-hand department store Charity Super.Mkt on the ground floor for a special pop-up.

Held between 09-22 February, the pop-up will be spread across 3,000 square feet on the ground floor of the store. It will feature women’s and men’s fashion pieces curated by five charity partners – British Heart Foundation, Shelter, Shaw Trust, Havens Hospices and Traid – with all proceeds generated from the duration of the pop-up going to the charity.

The opening at Fenwick responds to the growing popularity of pre-loved shopping and is designed to create a unique retail experience for guests looking for quality, affordable products. The Bond Street pop-up follows other Charity Super.Mkt locations in Shepherd’s Bush and Greater Manchester and previous successful pop-ups in London, Kent, Glasgow and Reading.

As well as Fenwick donating the retail space to Charity Super.Mkt, the space will feature existing rails and hangers donated by Fenwick, as well as a number of donated fashion pieces to be sold as part of the event. The space will also feature hoarding created using repurposed materials, as well as a pop-up window space supporting the collaboration.

Leo Fenwick, Fenwick director of strategic partnerships, said: “Partnering with Charity Super.Mkt combines many threads of our sustainability and charitable initiatives, including helping accelerate the move to a low-waste society with the reduction in textile waste, supporting opportunities for women to thrive, and partnering with charities to improve communities and the environment.”

RetailX’s Sustainability 2023 report recently tracked the growing trend of pre-loved fashion. It found circular sales practices such as resale have the potential to take 23% of the global market by 2030, a figure representing revenue of $700bn.

The luxury resale market has been predicted to grow five times faster than the luxury market as a whole between 2020 and 2025.

Buying secondhand has become mainstream, especially among younger fashion shoppers in the UK, France, Germany and the US. Gen Z consumers are conscious of price when buying fashion and this extends beyond their credit card to concerns about the environment, brands’ working practices and
supply chains.

Download the full report to for analysis of the current state and future direction of sustainability among the world’s leading retailers and brands.

The research highlights the extent to which the RetailX Global Elite Top1000 are sharing their sustainability journeys with customers and how customers are shopping with sustainability in mind.

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COMPANY PROFILE Seasalt Cornwall https://internetretailing.net/company-profile-seasalt-cornwall/ Wed, 17 Jan 2024 08:18:00 +0000 https://internetretailing.net/?p=63184 UK lifestyle brand Seasalt Cornwall partnered with repair and resale provider Reskinned in 2023, in order to limit the number of items of clothing going to landfill.  Following the rolling out of a take-back scheme, in which Seasalt reported receiving over 2,000 items in those first six weeks, the Cornish brand enabled its customers to […]

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UK lifestyle brand Seasalt Cornwall partnered with repair and resale provider Reskinned in 2023, in order to limit the number of items of clothing going to landfill. 

Following the rolling out of a take-back scheme, in which Seasalt reported receiving over 2,000 items in those first six weeks, the Cornish brand enabled its customers to buy second-hand or repaired items through Reskinned’s platform in April. 

“It’s so important to us, as a business, to do what we can to encourage circularity in the fashion industry and the success to date is testimony to the quality of our Seasalt product,” explained Paul Hayes, CEO of Seasalt.

The recommerce offering is part of Seasalt’s wider sustainability plan, which has four pillars, namely Product, Environment, Partners and Community. It has pledged to increase the use of certified sustainable materials in products, send zero waste to landfill by the end of 2023 and is also committed to transitioning to become a Carbon Net Zero business by 2040. 

As well as its partnership with Reskinned, Seasalt stressed it will continue to partner with businesses who can support its social standards and environmental ambitions.

This company profile originally appeared in the Recommerce section of the DeliveryX Europe Top1000 2023 report. Download the full report which features 15 company profiles including KPI comparisons. Readers can benefit from the industry’s best as they share their success stories and innovative strategies.

Retail case studies includes: M&S, H&M, Aldi, Albert Heijn, Lego, Asda, Sephora, Zalando, New Look, Zara, Decathlon, Castorama, Amazon and La Redoute

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2023 WRAP UP Second-hand shows no slowdown https://internetretailing.net/2023-wrap-up-second-hand-shows-no-slowdown/ Wed, 20 Dec 2023 15:11:32 +0000 https://internetretailing.net/?p=63007 The concept of second-hand is not new, but recently pre-loved has seen a real revival, with both consumers and retailers seeing the value in recommerce.  Whether to spend more wisely or shop more sustainably, the growth of second-hand shopping has shown no sign of slowing down in 2023.  Consumer demand In August, Trustpilot published a study […]

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The concept of second-hand is not new, but recently pre-loved has seen a real revival, with both consumers and retailers seeing the value in recommerce. 

Whether to spend more wisely or shop more sustainably, the growth of second-hand shopping has shown no sign of slowing down in 2023. 

Consumer demand 
In August, Trustpilot published a study on consumer habits with regards to pre-loved goods. They found that consumers spent £661.20 on used items over a 12-month period, as opposed to £484.80 in the previous year.

In the study, over 60% cited concerns about fast fashion as part of their consumer decision-making, while 57% of participants attributed their buying decisions to the cost of living crisis.

Retailers respond
With consumers limiting their spending this year due to record-high inflation, retailers have had to react. They have also had to change their, sometimes bad, habits when it comes to their environmental impact. 

Recommerce is one route retailers have turned to. Unsurprisingly, clothing is already the most popular second-hand category, with a third (29%) of consumers buying pre-loved fashion. Sales of second-hand bags and accessories (15%) and footwear (15%) are also starting to grow.

There are dedicated recommerce platforms – Thrift+, Trove and Reskinned – which a host of brands have turned to for the hard lifting. These firms offer everything from take back schemes, cleaning and resales for the likes of Gymshark, Levi, Mango, Superdry and White Stuff.

For Spanish fashion giant Zara, their recommerce offering is done in house. In November this year, the high street brand introduced its “Zara Pre-Owned” platform offering repair, resale and donation services in UK stores, online and via its app, in a bid to cut its carbon footprint.

Customers will be able to book a range of repair services for their Zara goods including the replacement of buttons and zippers and mending of seams. Shoppers can access the repair service online or at a Zara store of their choosing.

Zara’s customers can also post pre-loved Zara purchases online for sale. Sellers will be required to take pictures of their goods but the detailed product information will be provided by Zara.

Not just fashion
While second-hand fashion has proved popular with consumers, it does not mean recommerce is limited to clothing and accessories.

Decathlon started with refurbished bikes, offered a tent recycling scheme this summer and plans to expand its Second-Life offering to include fitness equipment, kayaks and rackets next year.

Marketplace eBay has also championed refurbished technology as a way for consumers to combat the cost of living crisis.

“Refurbished is a great solution to getting the tech you love for less and keeping products in circulation. With the cost of living continuing to rise, we’re supporting families by showing the breadth of products you can kit out your homes with,” explained Mark Monte-Colombo, head of refurbished technology at eBay UK.

Amazon Second Chance store
For ecommerce giant Amazon, they not only saw the benefit of second-hand in the run up to Christmas but also physical retail.

At the end of November, its Second Chance Store in London offered consumers the opportunity to buy quality returned products in-person, for the first time. Kitchen and household appliances, books, games and toys, electricals were available for up to 50% off. 

The pop-up also featured a Repairs Zone where customers could participate in free repairs workshops onsite.

 “Amazon is committed to giving more products a second chance – both through helping customers shop pre-loved, and through programmes to recycle, trade-in and repair products, contributing to a more circular economy,” said John Boumphrey, UK country manager, Amazon.

“The Second Chance Store that we’ve launched today with Barnardo’s is all about offering customers a great way to shop second-hand this festive season, while supporting a brilliant charity we have been working with for many years.” 

This December, InternetRetailing looked back over 2023. It reviewed the Return to the High Street and Acquisitions and raising stakes

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GUEST COMMENT What does the year ahead look like for ecommerce and order fulfilment? https://internetretailing.net/guest-comment-what-does-the-year-ahead-look-like-for-ecommerce-and-order-fulfilment/ Tue, 12 Dec 2023 00:00:00 +0000 https://internetretailing.net/guest-comment-what-does-the-year-ahead-look-like-for-ecommerce-and-order-fulfilment/ The fate of the traditional high street remains uncertain in hardened economic times, with consumer shopping habits continuing to turn to ecommerce as a means of purchasing both necessary and luxury items. As shopping habits evolve, so do the channels that customers return to time and time again for their product of choice. In a […]

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The fate of the traditional high street remains uncertain in hardened economic times, with consumer shopping habits continuing to turn to ecommerce as a means of purchasing both necessary and luxury items.

As shopping habits evolve, so do the channels that customers return to time and time again for their product of choice. In a year that saw social commerce boom, and channels like Instagram and TikTok taking centre stage in how customers choose to shop, consumerism through ecommerce has developed even further and looks set to outstrip the high street in the year ahead.

Ecommerce by its very nature offers more choice and is now being impacted by the rise of trends. As an example, in the last year ‘recommerce’; the reusing, reselling and renting of clothes has generated almost £7 billion for the UK economy as customers embrace sustainable habits.

Jamie Saucedo, SVP, business operations at PFS now part of GXO

With retail habits evolving and new trends becoming viable ways to shop, Jamie Saucedo, SVP, business operations at PFS now part of GXO considers what does the year ahead look like for ecommerce and order fulfilment?

The digital retail experience
Channel strategies will be challenged next year, as social commerce booms and consumers continue to be engaged via a plethora of channels, therefore making it vital for brands to drive consistent messaging across them. With more choice comes more expectations of engaging with a product in the same way both digitally and physically. By harnessing data to understand where the consumer is researching and where they are converting, and then being able to deliver a personalised experience in each channel is critical to driving sales.

This is something that is done particularly well in the health and beauty market, with the likes of Charlotte Tilbury embracing immersive marketing and creating a digital retail experience. The virtual store experience and branded ‘world’ is the primary focus, and the product is secondary. AI and predictive analytics will play an increasingly important part in establishing personalised experiences by their ability to predict trends based on commonalities across consumer groups, how brands can best connect with them and how they can deliver content in a way that’s meaningful.

Economic impact vs income and spending
As inflation starts to moderate, discretionary income will continue to be impacted. Data is saying inflation is tapering off, but consumers say eggs and milk still cost too much. 2024 will see brands being hyper-focused on what is uncertain for the upcoming season, whether that is a cost of living crisis or an increase in household bills that might impact the consumer.

To counteract this, the supply chain will need to moderate in order to make sure inventory is balanced in both retail stores as well as ecommerce, so as not to create a Profit and Loss (P&L) drag and ensure brands have inventory in the right place for where the customer is. When the time comes to convert an online sale, it has to feel seamless. While consumer focus continues to be placed on value and looking at the best price, retailers will need to try and balance value with basket size, offering discounts or free products, or developing their strategy around free shipping. They will do it in a way to intentionally drive incremental basket size to really protect the margin side of it, utilising ‘buy more, save more’ incentives both in a retail store or on a website.

Primarily for ecommerce, a further shift will take hold that continues to be driven by value but will see consumers starting to care less about the speed of receiving their product, versus the predictability of exactly when they will receive it. We could see ‘three to five business days’ disappear with exact delivery days becoming the new norm, even if that means slower delivery .

The physical and e-outlet vs. recommerce
The theme of sustainability, vintage items and apps designed to support this trend are on the rise. Recommence is now a key focus for any large retailers in both Europe and North America because it solves two very important problems. The first is the intense pressure on sustainability in the apparel market in general. The second is managing returns and the impact it has on sales. Returns are one of the largest P&L aspects a brand must navigate and overcome. This lends to an opportunity to marry the two in a unique recommerce experience that delivers the objective of minimising waste.

There’s still discovery around what should be marketplace versus owned in the space and whether brands have enough customer attention to effectively drive recommerce in an owned channel rather than cannibalising new sales on the product. Ultimately, recommerce is driven by the consumer. There is a newer generation going against fast fashion, and instead, advocating for the global impact purchasing clothes has from a sustainability perspective.

The returns model
Alongside this, we’re also seeing a shift in how retailers approach returns which will carry through to the new year. Returns requirements increasingly vary from one retailer to another and consumers should no longer assume they have an extended return period. For example, there are apparel companies that now require returns be made within seven days of delivery. This process is ultimately designed to get the unit back while it’s still in a sellable state before it hits a markdown cadence, acting as a margin protection programme. As 2024 approaches, we will continue to see significant focus on returns in the apparel market to solve the challenge of getting an item back too late and then taking it to markdown.

Whilst the high street and its growth remains unknown, it is safe to say that the rise of ecommerce and social commerce will continue to take hold of retail in 2024. The year ahead offers a prime opportunity for brands to get ahead of the competition, as long as they plan ahead and prepare for factors that impact customer spending and continue to stay nimble and keep the customers’ needs at the front and centre of their business model.

Jamie Saucedo, SVP, business operations at PFS now part of GXO

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PREDICTIONS Recommerce and social platforms transforming retail https://internetretailing.net/predictions-recommerce-and-social-platforms-transforming-retail/ Fri, 24 Nov 2023 00:00:00 +0000 https://internetretailing.net/predictions-recommerce-and-social-platforms-transforming-retail/ Each year, DeliveryX starts to look ahead to the coming new year in a series of predictions. Angus Knights, from post purchase experience software provider parcelLab, answered questions on what ecommerce will look like in 2024. There’s a lot of buzz around the recommerce revolution. Why do you think it’s gaining such momentum?Recommerce, or reverse […]

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Each year, DeliveryX starts to look ahead to the coming new year in a series of predictions. Angus Knights, from post purchase experience software provider parcelLab, answered questions on what ecommerce will look like in 2024.

Angus Knights, parcelLab

There’s a lot of buzz around the recommerce revolution. Why do you think it’s gaining such momentum?
Recommerce, or reverse commerce, is rapidly transforming retail because it speaks directly to the modern consumer’s desire for sustainability and value. As environmental concerns grow, people are embracing the idea of purchasing pre-owned items to reduce waste.

It’s a win-win scenario, offering more affordable options for consumers and a new revenue stream for retailers. The key for businesses is to ensure authenticity and quality, which can turn second-hand shopping into a premium experience.

Omnichannel retailing isn’t a new concept, but it’s persisting as a trend into 2024. What makes it so crucial now?
Omnichannel retailing has evolved. It’s no longer just about being present on multiple platforms; it’s about delivering a consistent, seamless experience. Customers expect to move fluidly between online and offline channels. Retailers that integrate their services, ensuring that each touchpoint is interconnected, are those that will thrive. It’s crucial because it directly affects customer satisfaction and loyalty – both of which are key drivers for repeat business in a competitive market.

Consumers are increasingly demanding transparency in supply chains. How should retailers respond to this?
Transparency is no longer optional; it’s a necessity. Consumers are more informed and conscious about the ethics of their purchases. Retailers must provide visibility into their supply chains, demonstrating ethical practices and sustainability. This can mean regular reporting, ethical sourcing badges, or even blockchain tracking for products. Retailers adopting transparent operations are likely to gain consumer trust and, consequently, a stronger market position.

Social media platforms, especially TikTok, are changing the shopping landscape with live video shopping. How significant is this shift?
It’s a game-changer. Social media has always influenced retail, but live video shopping turns viewers into instant customers. It creates an interactive experience that’s engaging, immediate, and highly personal. Retailers can leverage this by partnering with influencers or creating their own live content to showcase products, offer live demos, and interact with consumers in real-time. It’s about tapping into the community aspect of shopping that many consumers crave.

Could you provide some practical advice for retailers who want to leverage these trends?
For recommerce, retailers should focus on developing a robust authentication process and a narrative around the lifecycle of their products. With omnichannel retailing, investment in integrated technology systems that provide a seamless customer experience is crucial. In terms of supply chain transparency, it’s about starting with internal audits, understanding your supply chain thoroughly, and then communicating this clearly to your customers. For live shopping via social media, retailers need to be authentic and engaging, providing exclusive content that feels personal to the viewer.

What do you believe will be the biggest challenge for retailers in adapting to these trends?
The biggest challenge will be balancing innovation with consistency. Retailers need to continuously adapt to new technologies and consumer behaviours without losing sight of their brand promise and the quality of their customer service. It’s about being agile in implementation but also steadfast in delivering value and trust to consumers.

Finally, how important is technology going to be for the future of retail?
Technology is not just important; it’s integral. It’s the backbone of modern retail, enabling the creation of omnichannel experiences, supply chain transparency, and the execution of live shopping events. Retailers must embrace technology not only to improve their operations but also to meet the ever-evolving expectations of their customers. The retailers that can most effectively integrate technology to enhance the shopping experience will be the ones who lead the pack in 2024 and beyond.

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RX SUSTAINABILITY 2023 REPORT A circular future https://internetretailing.net/rx-sustainability-2023-report-a-circular-future/ Mon, 06 Nov 2023 00:00:00 +0000 https://internetretailing.net/rx-sustainability-2023-report-a-circular-future/ The new RetailX Sustainability 2023 report has stressed that with resale becoming normalised for consumers, retailers and brands looking to add a resale revenue stream to their business have decisions to make. The retail industry is becoming increasingly circular in its use of materials and taking back products, when consumers no longer want them, as […]

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The new RetailX Sustainability 2023 report has stressed that with resale becoming normalised for consumers, retailers and brands looking to add a resale revenue stream to their business have decisions to make.

The retail industry is becoming increasingly circular in its use of materials and taking back products, when consumers no longer want them, as well as in the way that items are sold. The growing movement is predicted to benefit not just the environment and society but a company’s bottom line as well.

In the fashion industry alone, circular sales practices such as rental and resale have the potential to take 23% of the global market by 2030, a figure representing revenue of $700bn. The luxury resale market has been predicted to grow five times faster than the luxury market as a whole between 2020 and 2025.

Buying secondhand has become mainstream, especially among younger fashion shoppers in the UK, France, Germany and the US. Gen Z consumers are conscious of price when buying fashion and this extends beyond their credit card to concerns about the environment, brands’ working practices and supply chains. This poses a two-pronged challenge for fast fashion companies that are having to change due to environmental factors as well as increased competition from low-cost competitors from China selling globally via mobile apps.

There is a secondhand market in China as well. Only around 15% of fashion shoppers in the country say they have purchased secondhand clothing, but a further 40% are keen to try, according to the RetailX Global Fashion report.

New revenue streams
Historically, the resale of products has been the premise of consumer-to-consumer and third party marketplaces such as eBay, Vinted, ThredUp, Depop, Vestiaire Collective and Alibaba’s Idle Fish. In 2021 and 2022, 25 million items were resold on the Depop platform alone, giving products a second life while enabling tens of thousands of people to make an income from circular fashion.

With these pressures on fashion brands, it is understandable that they want to open new revenue streams and take ownership of at least the part of the secondhand market around their own labels. Zara has been a pioneer in this field. The Spanish company tested the resale of pre-owned fashion on its core ecommerce site in the UK and has since expanded it to its site in France. Spain and Germany will follow.

Zara Pre-owned features on the top navigation from where consumers can choose to buy, sell or donate clothing as well as access repair services from the brand’s network of third party workshops. As the company tells consumers, “the most sustainable garments are the ones you already own.”

Zara’s Resell Corner enables customers to list for sale any Zara garment they no longer want. A product description is required outlining any blemishes and this is uploaded along with images of the actual garment rather than stock images from Zara. Every listing on the peer-to-peer platform is reviewed by Zara to ensure that the garment description matches the five or six images posted. Zara handles the payment by forwarding it on to the seller once the buyer is happy with their purchase. Zara customer services also handle any dispute between buyer and seller.

Meanwhile, H&M has already seen an 85% increase in revenue from its resale partnership with Sellpy and is targeting €90m in resale revenue in 2023.

Luxury
Luxury brands are embracing resale as well but the majority of sales of secondhand luxury items are still via platforms such as Vestiaire Collective.

Luxury watch maker Rolex closely controls its secondhand market through a certification programme officially vouching for pre-owned Rolex watches when they are bought from a jewellery store that has joined its official scheme. The guarantee of authenticity that is issued in the form of a seal attached to a secondhand watch attests to its authenticity on the date of purchase as well as providing a two-year international guarantee. It also shows that the watch is working properly.

Retailers
Retailers that are known for selling in the luxury space are also joining the resale revolution. Prestige department stores such as London’s Harvey Nichols and Selfridges are currently embracing resale in store.

Pureplayer Net-a-Porter has partnered with resale technology provider Reflaunt. Here, the price of items offered for sale are decided by a pricing algorithm that “takes into consideration market trends, demand and the item’s condition,” states the site. A ‘Smart Pricing’ option will reduce the price of listed items automatically by 20% every 45 days a maximum of three times.

Net-a-Porter customers can have the item collected from their home, with the retailer handling photography and product listing. In return, the customer receives money once the item is sold, minus a commission. They can opt to receive an extra 10% of the selling price if the total amount is taken as credit against future purchases on Neta-Porter. Since launching a trial in 2021, Net-a-Porter has expanded its resale offering for customers in Italy, France, the US, Hong Kong, Germany, Australia, South Korea and the Middle East. It is also available to customers of its Mr Porter and The Outnet sites.

Resale is just one service among Selfridges’ circular operation. Reselfridges, as the department store calls its ecosystem of circular products and services, brings together resale, rental, repair, refill and recycling across its online and bricks-and-mortar channels. The company has an ambitious target that 45% of transactions will come from Reselfridges by 2030.

Business considerations
With resale becoming normalised for consumers, retailers and brands looking to add a resale revenue stream to their business have decisions to make. Do they operate the service in-house, in partnership or through acquisition? As Rolex demonstrates, it also requires consideration of product authentication and quality control, while Net-a-Porter highlights different pricing models for retailers and consumers.

How does the service fit in with expectations of the individual business’s customer base and should items be resold on the core ecommerce site, under a separate URL or via existing third party platforms? Communication between brand and seller and between buyer and seller also need to be managed to ensure that any service remains on brand and doesn’t damage existing brand reputation and customer trust.

With resale taking up an ever larger share of the overall product market, retailers and brands will also have to carefully consider how they control supply and demand if they want to predict revenue levels. Adding product rental to the circular service mix will enable more consistent product availability, while the increasing use of recycled, reengineered or ethical materials in product design will give conscious consumers assurance to buy new.

This feature was authored by Emma Herrod and originally appeared in the RetailX Sustainability 2023 report. Download it in full to discover why the RetailX Global Elite 250 are sharing their sustainability journeys with customers, and how consumers are shopping with sustainability in mind.

Also pre-register to view the Ecommerce World Review webinar which sees an expert panel discuss the report.

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eBay and Wrap launch Circular Change Council with leading UK retailers to tackle furniture waste https://internetretailing.net/ebay-and-wrap-launch-circular-change-council-with-leading-uk-retailers-to-tackle-furniture-waste/ Thu, 19 Oct 2023 23:00:00 +0000 https://internetretailing.net/ebay-and-wrap-launch-circular-change-council-with-leading-uk-retailers-to-tackle-furniture-waste/ eBay UK has teamed up with waste charity Wrap to launch the Circular Change Council, an action-focused homeware industry collective aiming to increase circularity in the furniture industry and help reduce furniture waste. The industry-first collective features the founding partners alongside major brands including Ikea, George at Asda, Very, Sainsbury’s, Simba and Dunelm, as well […]

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eBay UK has teamed up with waste charity Wrap to launch the Circular Change Council, an action-focused homeware industry collective aiming to increase circularity in the furniture industry and help reduce furniture waste.

The industry-first collective features the founding partners alongside major brands including Ikea, George at Asda, Very, Sainsbury’s, Simba and Dunelm, as well as the British Retail Consortium and the British Heart Foundation.

Lyndsey Miles, head of business development at Dunelm, said: “Dunelm are excited to be collaborating with other major furniture retailers to recognise the amazing value that still exists in returned and pre-loved furniture. We know that by working together we have a much better chance of changing mindsets and creating a more circular furniture industry.”

The new council aims to increase circularity in the furniture industry and drive action to target the 22 million furniture items that are thrown away by citizens in the UK each year. Wrap reported more specifically 190,569 tonnes of sofas (approx 4.8 million sofas) are discarded, as well as 33,178 tonnes of dining tables (approx 1.1 million dining tables).

Beyond sustainable benefits, recent Wrap research shows that 20% of home furniture that is discarded is suitable for reuse. By purchasing reused home furniture rather than brand new, households could save £2.37bn, and avoid 62,255 tonnes of carbon emissions– which is the equivalent of taking over 28 thousand cars off the road for one year.

The initiative is the latest in a series of activations from eBay designed to promote re-commerce and tackle waste, following its pre-loved fashion sponsorship of ITV2’s Love Island that saw UK’s consumer appetite for second-hand items soar with 1,400% more searches for ‘pre-loved clothes’ in 2023.

Furthermore, eBay website searches for second-hand furniture have seen over 140% year-on-year increase, with top items being used kitchens, wardrobes, chests of drawers and armchairs.

To help drive further consumer demand in this space, the Circular Change Council will work with the UK’s leading retailers to frame ‘non-new’ furniture in the most appealing way to help tackle common perceptual barriers.

Kumaran Adithyan, general manager home, refurbished and electronics at eBay UK, commented: “There is a huge opportunity for the furniture industry to take on some of the challenges to help take steps towards a fully circular future. We are excited to partner with WRAP, to bring together like-minded and forward-thinking brands from across the industry, to form a collective that can drive and incentivise behaviour change at scale.

“There are some challenges we’ll work together to tackle – from stigma for buying second-hand, to the language and framing that we use around non-new items. For 28 years, eBay has been providing the platform for non-new items and driving circularity. Now is the moment for second-hand to shine. We intend not only to make it easier for consumers to find a good deal by buying non-new, but also to help to keep items out of landfill.”

Retailers have made positive efforts to reduce the impact of the industry, for example, Simba via their mattress recycling and refurbishing efforts, and Ikea through their Re-shop and Re-use initiative where customers can find pre-loved items. However, there is recognition that as an industry there is a chance to increase impact and address wider issues which can only be tackled through collaboration.

The council stressed circularity is good business: for retailers, a fully circular industry would make significant reductions to current returns models, which cost the industry up to £60bn a year. The challenges facing the industry, as identified in early reports and consultations driven by the council, include making it easier for consumers to access pre-owned furniture from a trusted and reliable source, cost of returns, and complex recycling regulations that can result in more furniture being sent to landfill than necessary.

The RetailX Europe Homeware 2023 report highlights that while the homeware sector has a poor record with sustainability it is working to improve both manufacturing practices and delivery. Download the full report to discover

  • How does Ikea attract ten times more traffic to its website than its nearest rival?
  • Homeware spending across Europe is strongest in Italy, Spain and Romania
  • How this sector is already leading the way in terms of AR uptake and approval

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