When you’re dealing with a retail landscape as competitive—and fickle—as the one today, a variety of things occur. As malls and department stores close, off-price retailers like ROSS and T.J. Maxx are reaping the benefits of selling merchandise from cancelled orders, overstock, or last season. And, they are leaving traditional retailers in the dust. In fact, TJX Companies and Dollar General currently rank among the top 20 U.S. retailers. Believe it or not, old is now new.
The New Value of Secondhand
Consumers today are finding more value in purchasing used apparel and accessories, and it’s giving way to “secondhand” becoming the new trend. We’ve previously written about the Gen Z and Millennial concern for sustainability, and how the apparel resale market is slated to reach $51 billion by 2023. What’s more, our summaries from the Reverse Logistics Association’s Conference & Expo show that returns aren’t slowing down—as lax return policies are crucial to customer loyalty (More on that here).
So, with the market saturated with returns and overstock and consumer demands for sustainable business practices, what happens next?
The Opportunity for a Second Life
It’s no longer just eBay. Today, consumers are purchasing secondhand products from sites like Amazon, Craigslist, Facebook Marketplace, Poshmark, Etsy, and even Instagram. The space that was once dominated by a single player is now a market full of promise for everyday people to start and grow a reselling business—and unlimited access for consumers. The trend has even inspired retailers including J.C. Penney and Macy’s to partner with companies like online consignment marketplace ThredUp. The net of it is, the resale market could surpass fast fashion within a decade.
What Can Retailers Do?
Perhaps the best way in which retailers can recapture value and offset loss lies within a recommerce solution. Some brands are launching their own resale sites (The North Face Renewed; Worn Wear by Patagonia), while others are opting to build their own B2B marketplaces in order to sell bulk quantities of returned and excess merchandise to resellers around the country.
When it comes to a B2B marketplace recommerce solution, partnering with a secondary market expert who can build a customized B2B online auction marketplace is the way to go. A solution of this type allows for access to thousands of vetted buyers (which generate more demand), a consistent listing cadence, and a private, customized setting in which the seller can place restrictions on buyers—which protects the brand.
B-Stock’s auction marketplaces are customized and scaled based on each retailer’s needs and goals. That’s why nine out of the top 10 U.S. retailers are leveraging our platform to drive demand and achieve higher pricing, as well as a faster sales cycle—all while maintaining brand integrity.
If you’re ready to harness the value of the secondary market and give your returns and excess inventory a second life by selling to a new sector of buyers, schedule a demo today.
The post Thought Leadership Thursday (#TLT): A Second Wind for Products appeared first on B-Stock Solutions.