What's Happening?
Salesforce forecasts that U.S. resale transactions will generate $64 billion in holiday revenue, with fashion resale alone potentially reaching $26 billion in 2025. Recommerce, the sale of pre-owned, refurbished,
or overstock goods, is becoming a profitable sales channel and discount strategy. The growth in recommerce is driven by tariffs, inflation, and changing consumer values, with many fashion brands now offering in-house resale programs. This trend is reshaping how merchants attract consumers and manage inventory.
Why It's Important?
The rise of recommerce reflects a significant shift in consumer behavior towards more sustainable and cost-effective shopping options. This trend offers retailers a strategic pricing tool, allowing them to move inventory without eroding brand value. By embracing recommerce, businesses can tap into new customer segments, particularly Gen Z and Millennials who value thrift and authenticity. This approach not only boosts revenue but also aligns with growing consumer demand for sustainable practices.
What's Next?
As the holiday season approaches, retailers are likely to test recommerce strategies to gauge their effectiveness. Successful implementation could lead to permanent adoption of recommerce channels, reshaping inventory management and sales strategies. Retailers may also explore new technologies and platforms to streamline recommerce operations, enhancing efficiency and customer experience.
Beyond the Headlines
The growth of recommerce highlights a broader trend towards sustainability and value-driven consumption. This shift may lead to long-term changes in retail practices, with businesses increasingly focusing on eco-friendly and cost-effective solutions to meet consumer demands.
