Stay in the know. Subscribe to Currents

Rise of Recommerce

1 Mins read

Resale retail is not new and had a bit of a surge a few years ago. But it’s been redubbed recommerce and is surging anew.

In 2018, two years before the onset of COVID-19, fashion was the “star,” comprising 49% of the resale market. Home furnishings accounted for only 11%.

So while fashion introduced consumers to the benefits of recommerce, in 2020, the home category emerged as the fastest-growing resale segment. Zillow says secondhand furnishings and décor are making a big comeback, and Statista projects the furniture resale market will increase 70% from 2018 to 2025.

According to a report from Chairish, by 2027, recommerce revenues are expected to grow 127%, and from 2017-to 2024, the global resale market is expected to triple, reaching $130.6 billion.

Recommerce, like most retail these days, is powered by millennials and Gen Zers—31% of whom say the pandemic increased their interest in buying used, vintage, or antique furniture—particularly online.

Also driving resale retail, since the pandemic began:

  • 60% of consumers are more opposed to wasting money
  • 51% are more averse to environmental waste
  • 50% care more about seeking value
  • 33% of consumers care more about wearing sustainable apparel than they did pre-pandemic

The Chairish report is packed with helpful information for entrepreneurs who want to explore the recommerce market.

If you already own a retail store, Chain Store Age reported that the resale market is expected to grow 11 times faster than firsthand retail clothing sales over the next four years. And 43% of consumers are more likely to shop at a business that lets them trade in their old clothes for store credit, while 34% are more likely to shop at businesses that offer secondhand clothing alongside new merchandise.

Vintage furniture stock image by pipicato/Shutterstock

Related posts

How to Support Inclusive Entrepreneurship in Local Economies Through the Digital Age

3 Mins read
As the business world digitized over the last decade, it has become clear[i] that small businesses need help creating a digital presence…

How Small Businesses Can Optimize Their Back Office in the Midst of a Labor Shortage

3 Mins read
The recent labor shortage in the U.S. is an unexpected side effect of the pandemic that has left seasoned economists mystified and…

5 Signs It’s Time to Find a New Accountant for Your Business

5 Mins read
As a business owner, you likely want to do whatever you can to keep your company’s finances in check. This is why…