Recommerce is, simply put, the recycling method of the Internet and modern technology age. It works by offering a guaranteed repurchase price to the holder of the product, or by organising the logistical return of the product. In 2016 you can pretty much recommerce anything if it fits the guidelines, with companies offering products from jeans, corks, eyeglasses and watches, or cultural goods, to books, CDs and DVDs. It is an access to second hand luxuries, like smartphones, tablets, computers, TVs and cameras. An excellent example of recommerce in 2016 is the company Envirofone, who buy second hand or even damaged phones and recycle them safely and in an environmentally friendly manner.
Although the topic of recommerce has not yet become mainstream, the list of investors show how much the topic is growing. The advantages of selling via recommerce compared to platforms such as Ebay and Amazon are considerable - there are no elaborate registrations, fees, auction waiting time, taking care of product description or the need to provide photos. Some platforms not only offer the purchase but also the sale of used goods. This means that buyers then also have 12 months warranty and right of withdrawal.
The latest country to be hit by the recommerce craze is Germany, where businessmen such as CEO Heiner Kroke are discovering the success and benefits that come with recommerce. Kroke revealed in an interview for the German Startup magazine Gründerszene that his company, Momox, an international online books, CDs, DVDs and game trading platform, has ‘more than doubled its profits from two million euros in 2014 to a total of 4.4 million euros this year.’ The secret to his success? He’s made it easy. The user only needs to specify what he wants to sell, and then he can, for example, scan the barcode of the product with his smartphone camera. He can then send it to the platform and receive the agreed price. With creating a way of recommerce so instant and easy, it’s no wonder that Kroke is the proud owner of a successful recommerce business.
Recommerce is on the rise, and the internet’s vast potential has made it easier for organisations to create a larger target audience. If you were to set up a store in a certain location, your target audience would be the people in the area, with a limit of generating consumers from further away. Thanks to the Internet, company directors are now able to create recommerce platforms on an international crowd, creating a variety of people from all of the world that are now taking part in this new way of recycling used goods.