Introduction
It's no secret that online shopping sales have increased exponentially over the past decade. Shopping from home offers convenience, as well as access to expanded inventory options available for purchase. In 2020, COVID-19 elevated those numbers to an even steeper incline, with e-commerce sales reporting a 25% increase. Many experts see these shopping habits outlasting the pandemic.
What might be surprising is the critical role that recommerce, or secondary marketplaces, play in this continued trend. As online sales have seen record increases, so too have the volume of returns, currently at a minimum of 30% of all orders. Mitigating the financial losses for these returned products is vital for retailers to capitalize on the upswing in online shopping. Fortunately, the secondary marketplace can offer a considerable benefit.
Recommerce sites such as eBay, Groupon, and Poshmark started as places for individuals to sell personal, second-hand items. Today, they offer retailers opportunities to sell returned and refurbished merchandise — along with brand-new items — while reaching a larger audience and maximizing pricing.
Here, we discuss the secondary market evolution over the past ten years and how goTRG leverages recommerce opportunities to optimize recoveries and retail profits.
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