Recommerce – what is it and what benefits can it bring to your company?

Recommerce offers numerous advantages, including environmental protection, cost savings, enhanced company reputation, and product accessibility. It is a crucial component of modern business, helping to maximize the value of used products and promote a more sustainable approach to consumption.

What is recommence?

Recommerce, a portmanteau of “reuse” and “commerce,” is a concept revolutionizing how consumers and businesses perceive their used products. While it might initially appear to be ordinary secondhand trading, it goes far beyond that.

In essence, recommerce is the practice of reintroducing previously purchased and used products to the market for resale or exchange. This means that old clothing, electronics, furniture, and even books can find a second life beyond drawers or closets.

A key element of recommerce is promoting sustainable consumerism and reducing waste. Introducing secondhand products into a closed-loop system can help minimize waste and reduce the negative environmental impact. It also revolutionizes the traditional retail model, encouraging consumers to make thoughtful purchases and conscious choices.

Recommerce not only aids in reducing environmental impact but also provides consumers access to lower-cost products, attracting many people to this trend. Therefore, it’s valuable to understand what recommerce is and the benefits it can offer to individuals and businesses.

What value does recommerce bring to today’s business world?

The value and significance of recommerce in today’s business world are undeniable and become increasingly visible in light of growing ecological awareness and changing consumption patterns. Here’s why recommerce is so important:

Sustainable development: Recommerce aligns perfectly with the concept of sustainable development. It extends the product lifecycle, reducing waste generation and lessening the burden on the natural environment—a critical consideration in an era of growing environmental concerns.

Production cost reduction: For companies implementing a recommerce strategy, there is potential for significant production cost reduction. Refurbishing used products can be cheaper than manufacturing new ones, leading to savings and increased competitiveness.

Building a positive brand image: A company engaging in recommerce demonstrates its commitment to environmental protection and sustainable development. This can attract customers who increasingly prioritize social and ecological values. A positive brand image can result in increased customer loyalty.

Accessibility for various social groups: Reccommerce can also enhance product accessibility for individuals with lower economic status. Used products are often more affordable than new ones, making them accessible to a broader range of people.

Innovation and adaptation: Companies involved in recommerce often need to develop new skills and technologies, fostering innovation and development. This, in turn, helps companies better prepare for market changes and meet evolving consumer expectations.

In today’s business world, which increasingly emphasizes sustainable development, waste reduction, and socially responsible practices, the recommerce concept is not only a valuable tool but also an essential element of a forward-thinking approach to business.

Benefits of recommerce for companies

1. Revenue Increase: Implementing a recommerce strategy can significantly boost a company’s revenue.

This results from several key factors:

• Expanded Product Range: Reccommerce allows companies to broaden their offerings with used products, attracting new customers and expanding their market reach.
• Increased Product Turnover: Reccommerce enables multiple transactions with the same products, generating more sales and contributing to increased turnovers.
• Profits from Renewed Products: Items subjected to the refurbishing process often fetch higher prices than their value on the secondary market, increasing profit margins.

2. Waste Reduction and Environmental Impact:

Recommerce has a significant impact on reducing waste and using natural resources more efficiently.

This occurs for several reasons:

• Product Reuse: Products that would otherwise end up in landfills or be discarded are reintroduced to the market, reducing waste.
• Reduced Resource Consumption: By reusing and refurbishing products, there is less need for extracting new raw materials or manufacturing from scratch, positively impacting the environment.

3. Brand Image Improvement and Customer Relations:

Recommerce can help companies build a positive brand image and foster lasting customer relationships:

• Social Responsibility: Engagement in sustainable practices like recommerce demonstrates a company’s commitment to the environment and society, enhancing its image.
• Customer Loyalty: Consumers increasingly value ecological and social values. A company promoting recommerce can attract more loyal customers.

4. Savings in Procurement and Production:

Recommerce can yield significant savings in company operations:

• Production Costs: Refurbishing or renewing used products can be significantly cheaper than producing new ones from scratch.
• Inventory and Storage: Companies can reduce unused inventory, lowering costs associated with storage and inventory management.

Practical Recommerce Example

The growing popularity of recommerce is evident in the success story of an IT company that effectively implemented a recommerce strategy with the support of the SilentClicks platform.

This IT firm, specializing in consultancy, analytics, and business process improvement, with a workforce of a thousand employees worldwide, faced a significant challenge. After upgrading their electronic equipment, they needed to efficiently and responsibly dispose of their unused equipment.

This problem was not just about dealing with obsolete electronic equipment but also entailed commitments to environmental protection and sustainable asset management. Instead of treating the unused equipment as waste, the company opted for a more responsible approach, leveraging the recommerce concept.

Recommerce, as a strategy involving the reintroduction of used products to the market, became a key element in solving this problem. The company decided to collaborate with the SilentClicks platform to effectively implement its recommerce strategy.

The solution to this challenge involved the implementation of a dedicated auction system provided by SilentClicks. This solution seamlessly integrated with the company’s existing infrastructure and met the highest security standards.

The SilentClicks platform enabled the company to conduct up to 100 auctions, offering depreciated laptops to its employees for sale. The implementation process went smoothly and efficiently, with an intuitive interface allowing employees to quickly learn how to use the system. The results were impressive, as all laptops found buyers, significantly boosting the company’s revenue.

The business outcome of this endeavor was a remarkable increase in the company’s revenue by an impressive amount of PLN 108,000. This growth had a positive impact on the company’s financial results. It’s also worth noting that over 400 employees participated in the auctions, demonstrating their engagement in this innovative initiative.

Our platform not only brought tangible benefits to the company in terms of additional revenue but also helped them responsibly dispose of unused equipment, improving the efficiency of their infrastructure. This is an excellent example of how effectively implementing a recommerce strategy through SilentClicks can contribute to improved financial performance and employee engagement in a globally-reaching company.

Summary

In summary, recommerce is not just a trend, but also a crucial business strategy that offers numerous benefits. It helps protect the environment by reducing waste and efficiently utilizing resources, generates additional revenue, and enhances a company’s competitiveness. It also builds a positive brand image, attracts customers, and strengthens customer relationships. If you’d like to implement a recommerce strategy in your company or learn more about it, we invite you to contact our expert for a free consultation.

Schedule a free consultation and discover how to utilize recommerce in your company.