Recommerce: what it is and why it matters

The second-hand market isn’t slowing down—it’s only getting bigger. And now, it’s got a new name: recommerce. Whether it’s reselling your favorite jacket or upcycling that old chair into something fresh, recommerce is all about giving products a second chance. If you’re not thinking about it yet, you should be—because your customers already are.

In this guide, you’ll learn:

• What recommerce is and why it’s becoming more structured and necessary for businesses.
• What resale is and how it can help you unlock new revenue streams.
• What upcycling is and how transforming used products can add value to your business.
• How recommerce can be integrated into your existing business model to build brand loyalty and increase sustainability.
• Why you should care about recommerce and how it can drive profitability, reduce waste, and meet consumer demand.
• How to get started with recommerce, from identifying profitable products to integrating logistics and promoting your new initiative.

By the end of this guide, you’ll have everything you need to know to make recommerce a key part of your business strategy.

What is recommerce?

At its core, recommerce (short for reverse commerce) is about putting previously owned products back into circulation, either as-is (resale) or by transforming them into something new (upcycling).

This isn’t a new concept—the second-hand market has been around for decades. But it’s now becoming more structured, more organized, and driven by the need to extend the lifespan of products already on the market.

The second-hand market has grown exponentially in recent years. In fact, the global resale market is projected to double by 2027, reaching over €200 billion, fueled by consumers’ increasing demand for sustainable shopping alternatives.

It’s no longer just about thrifting—it’s about making thoughtful decisions to keep products in circulation longer and reduce waste.

As a retailer, it’s not just about selling products anymore. It’s about creating products designed to last, to be resold, and to stay relevant over time. The need for longevity has never been more critical, and that responsibility lies with both retailers and tech companies.

That’s where we come in. Tech platforms like ours make it easy for businesses to set up and manage recommerce flows. From resale to upcycling, we help minimize environmental impact by streamlining the process, keeping your footprint small while maximizing product life cycles.

Recommerce isn’t just a trend. It’s a new revenue stream—and it’s here to stay.

What is resale?

Resale is the process of selling previously owned products in their original condition, or with minimal restoration. These items may come from customer returns, excess inventory, or products customers no longer need. By offering these products again, resale gives them a second life, helping to extend their lifespan and prevent them from becoming waste.

For businesses, resale is a way to recover value from items that might otherwise be written off. It’s an opportunity to attract new customers by offering more affordable options while still maintaining quality. At the same time, resale can re-engage loyal customers by offering them sustainable alternatives.

Resale is not just for niche companies anymore—major brands are seeing its potential, integrating it into their business models to drive sustainability, tap into new revenue streams, and cater to environmentally conscious consumers.

The result? A circular model where everyone wins: your customers, your business, and the planet.

But what if you could take it even further?

What is upcycling?

Upcycling takes resale to the next level.

Instead of simply selling products in their current state, upcycling involves transforming used items into something new and improved. Whether it’s repurposing materials from an old product or creatively enhancing a returned item, upcycling adds value through innovation.

For businesses, upcycling opens the door to even more opportunities. Not only can you extend the life of your products, but you can also increase their appeal by offering something unique. Upcycled products often come with a story—whether it’s a jacket made from repurposed fabric or furniture crafted from reclaimed materials—making them highly attractive to customers who value both sustainability and creativity.

Together with resale, upcycling creates a comprehensive approach to recommerce, enabling businesses to reduce waste, engage customers, and stand out in a crowded market. Whether you’re simply reselling products as-is or reimagining them entirely, recommerce offers endless possibilities.

Recommerce as a business model: how retailers can leverage it

Recommerce isn’t just a trend—it’s a business model that can complement and enhance your existing strategy. But how exactly can you, as a retailer, tap into its potential?

The beauty of recommerce lies in its flexibility. You can integrate it seamlessly into your current model by offering resale or upcycling as additional services. Whether you’re selling directly to customers through your own platform or partnering with a third-party marketplace, the opportunities are endless.

Here are a few ways to get started:

1. Build a branded resale platform: Create a dedicated section on your website where customers can buy and sell previously owned products. This keeps your brand at the center of the customer experience and opens up a whole new revenue stream.
2. Partner with recommerce platforms: If building your own infrastructure isn’t feasible, partner with established recommerce platforms. They handle the logistics while you maintain brand visibility.
3. Incentivize returns for resale: Offer your customers incentives, like store credits, to return gently used products that can be resold. This not only drives loyalty but also helps you manage stock efficiently.
4. Combine it with your sustainability initiatives: Align recommerce with your broader sustainability goals. By promoting resale and upcycling, you’re not just reducing waste—you’re positioning your brand as a leader in sustainability.

Recommerce can be integrated without disrupting your current business model, adding value, increasing product longevity, and strengthening your connection with eco-conscious consumers.

The result? A model that’s not only profitable but also future-proof.

Why should you care about recommerce?

Let’s break it down:

Recommerce isn’t just another way to sell—it’s a powerful tool for building brand loyalty and creating a community around your products. When customers know they can return to your brand to resell or upcycle their items, it strengthens their connection with your company. They’re more likely to come back to you, not just for new purchases, but also for the longevity and value you provide through your recommerce offerings.

For many customers, buying pre-owned products from a trusted brand is far more appealing than purchasing from individuals on platforms like eBay or Vinted. Especially for more expensive or premium brands, authentication and trust are key. When your brand offers a resale or upcycling option, customers feel secure knowing they’re getting an authentic product. This is particularly important for luxury goods or heritage brands, where quality and authenticity are non-negotiable.

Take Fjällräven, for example. Their jackets, which are 50 to 80 years old, are still worn today—and not just as vintage pieces, but as functional, durable items with strong demand. These products were made to last for generations. Fjällräven continues to benefit from the enduring appeal of their long-lasting, authentic items. Recommerce for these types of brands helps meet the growing demand for used products, while ensuring that fewer resources are used to produce new items.

So, why should you care about recommerce?

• It’s profitable: You make money from products you already own.
• It’s sustainable: Less waste, more value. You’re keeping fewer products in landfills and ensuring that the products on the market are made to last.
• It’s in demand: Consumers are actively looking for brands that care about the planet and provide sustainable options. Meeting that demand through your own platform reinforces your commitment to quality and sustainability.

If you’re not in the recommerce game yet, you’re missing out—on customers, cash, and the chance to strengthen your brand.

How to get started with recommerce

Ready to dive in? Here’s how:

1. Pick your products: Start by identifying the items in your inventory that have resale or upcycling potential.
   
   But don’t stop there—get to know the true profitability of your products. Which items are in high demand? Which ones have low return rates? These are the products that are likely to succeed in the recommerce market and continue to drive value for your business.
   
   Also, take a look at what your customers are searching for when it comes to your brand. Are there specific products that are constantly in demand, even second-hand? Use those insights to feature these products as marketing pieces for your recommerce shop.
   
2. Set up shop: Once you’ve identified your key products, it’s time to decide how you want to structure your recommerce strategy. Will you manage everything in-house, or will you partner with an established marketplace to handle the logistics? Setting up a branded recommerce shop allows you to control the entire process and build deeper customer loyalty.
   
   Make sure you’ve got the logistical side sorted out too. For example, if products need to be repaired before being resold, you’ll want a system in place to send them directly to a repair shop, then list them for sale on your recommerce site. It’s crucial to ensure that everything runs smoothly—this is where operational excellence really matters.
   
3. Integrate with your systems: We can help you connect the dots. Whether you need to link your Order Management System (OMS), Warehouse Management System (WMS), Enterprise Resource Planning (ERP), or Product Information Management (PIM) system, we’ve got you covered.
   
   Our platform ensures that the new (old) product is correctly registered and ready to be sent to your customers and back again—fully aligned with sustainability goals. This makes your recommerce journey seamless from start to finish.
   
4. Get the word out: Now that you’re ready to launch, it’s time to make sure your customers know what you’re about. Let them know you’re giving products a second chance, whether it’s through gently used items or creatively upcycled pieces. Make it clear that you’re taking sustainability seriously, and that by shopping with you, customers are supporting a greener future.

Recommerce in action: success stories

Still unsure? Here are some brands killing it with recommerce:

• Patagonia’s Worn Wear program is leading the charge with resale. Their customers buy and sell used Patagonia gear, helping the environment while keeping their gear in rotation.
• IKEA’s upcycling projects breathe new life into old furniture, turning once-forgotten pieces into something customers want again.

These brands are building loyalty and making a profit, all while doing good. Your business can too.

Let’s make recommerce your next big move

Recommerce isn’t just about going green—it’s about growth. By adding resale and upcycling into your strategy, you’re not just meeting customer expectations—you’re exceeding them.

And hey, we’re here to help. We’ll work with you to set up, structure, and bring your recommerce vision to life, so you can serve the second-hand market directly, on your own terms.