The Recommerce Revolution: How savvy shoppers are changing the retail landscape ahead of peak season
At ShipStation, we’re always keeping our finger on the pulse of the retail world. Lately, we’ve been hearing a lot about the rise of recommerce, so we decided to dive deeper. Are Americans truly embracing secondhand shopping? What’s driving this shift? And how can businesses keep up?
Our latest survey of 500 American consumers reveals that recommerce is in full swing. With economic uncertainty looming, and nearly one in four (23%) Americans lacking confidence in making purchases over $200 in the next six months, 31% of U.S. consumers have increased their secondhand purchases in the past year. It’s clear that savvy shoppers are looking for ways to save money without sacrificing quality or style.
Key takeaways:
- Recommerce is on the Rise: Nearly 28% of U.S. consumers are buying pre-owned or refurbished items monthly.
- Gen Z and Millennials Lead the Charge: Younger shoppers are all about recommerce, with 59% and 48% of Gen Z and Millennials respectively buying pre-owned items weekly or monthly. Gen Z is nearly twice as likely to buy second hand at this rate compared to older generations.
- Cost is King: A whopping 74% of shoppers choose secondhand for the lower prices.
- Unique Finds are a Major Draw: Following lower costs, the thrill of finding unique or rare items is the second most common reason for purchasing pre-owned items (38%). Meanwhile, over a quarter (28%) say they purchase second-hand because they can get higher quality for a lower price.
- Savings > Sustainability: Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
- Trust is Key: Younger generations are more skeptical, with 47% of Gen Z and 38% of Millennials citing lack of trust in sellers as a barrier to recommerce adoption.
- Older Generations Struggle with Search: 46% of those over 55 find it difficult to find what they want secondhand.
What this means for retailers:
You don’t have to sell used goods to capitalize on the secondhand boom.
- Offer Trade-In Programs: Incentivize customers to trade in their old items for discounts or store credit.
- Make Products Last: Build durable, repairable products that stand the test of time.
- Nail Customer Service: Happy customers are repeat customers, whether they buy new or used.
- Build Trust: Offer secure payment options and transparent seller ratings to ease concerns, especially for younger shoppers.
- Improve Product Discoverability: Make it easier for customers, particularly older generations, to find what they’re looking for. Consider tutorials or streamlined search functions.
Delivery matters: fast and affordable is the winning combo
While recommerce is shaking up the retail landscape, the importance of shipping and returns hasn’t changed. Year over year at ShipStation, we find that shipping and returns make or break a sale, and ahead of peak season, these factors are more important than ever.
Key findings:
- High Shipping Costs are a Dealbreaker: A massive 70% of shoppers won’t return to a brand if shipping is too expensive.
- Late Deliveries are Frustrating: 51% of consumers are turned off by late deliveries. For Gen Z, late deliveries are the top concern (65%). For other generations, it ranks second.
- Packaging Matters: 40% of shoppers won’t return to a retailer again if the packaging is bad. This is more crucial for older generations, with concerns ranging from 37-43%, while only 28% of Gen Z share this sentiment.
What this means for retailers:
- Offer Free or Discounted Shipping: If free shipping isn’t possible due to heightened costs, consider accounting for the price of shipping in the product cost, or offering customers free shipping at a threshold when they meet a specific total cart price.
- Deliver on Time, Every Time: Invest in fast, reliable shipping to keep customers happy. The first step? Streamlining your internal processes and workflows to make order fulfillment as quick and easy as possible.
- Upgrade Your Packaging: Make sure your packaging is sturdy and presentable. It’s the first impression your product makes.
- Keep Customers in the Loop: Provide clear and regular updates on order status.
- Leverage Carrier Partnerships: Use a range of carriers and shipping classes to meet the diverse needs of your customers – from white glove, next day-shipping to economy.
- Make Returns Hassle-Free: 44% of consumers value easy returns, so make your policy clear and simple.
Bottom line
As economic pressures continue to reshape consumer behavior, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty. Whether you’re selling new or pre-loved, understanding the generational nuances driving secondhand shopping, prioritizing affordability and transparency, and delivering exceptional customer experiences in the last-mile are crucial for any business looking to thrive today.