Last Updated on January 21, 2025 by Packoi Team
Re-commerce, the process of buying and selling secondhand items, is a rapidly growing trend in today’s consumer market. According to 78% of consumers, they tilt toward re-commerce to get a good deal.
Secondhand items typically don’t come in their original packaging, so you have to be creative in choosing the right packaging. It should not only protect the items during transit but also create a positive impact on the customers. In this article, we take a closer look at the growth of re-commerce and how you can select the right packaging for your business.
What Is Re-commerce and Why Is It Growing in Popularity
Re-commerce simply means selling used or pre-owned items through various platforms like online marketplaces, thrift stores, garage sales, and more. The trend is driven by increasing environmental concerns and a shift towards a more sustainable consumption behavior.
However, re-commerce isn’t just limited to clothes. It also extends to refurbished electronics, furniture, books, and even luxury items.
The global revenue in the re-commerce market is expected to reach $448 billion by 2029. Consumers head over to different platforms to find secondhand items that are not only budget-friendly but also unique and one-of-a-kind.
Speaking of platforms, 23% of consumers use online marketplaces to find secondhand goods, while 12% opt for social commerce apps. The trend towards re-commerce is undeniable and presents a great opportunity for businesses.
A lot of growth factors contribute to this trend. Some of them include changing consumer behavior, increased awareness about environmental concerns, and the rise of convenient online marketplaces. People are also increasingly looking for ways to save money and avoid the “throwaway” culture of fast fashion and disposable products.
What’s important to understand here is that when people buy secondhand for environmental purposes, they also want to see sustainable packaging. After all, what’s the point of buying secondhand if it’s going to come wrapped in layers of plastic?
That’s why there’s a need for re-commerce businesses to opt for sustainable packaging. Besides being environmentally friendly, it also helps attract and retain customers who prioritize sustainability.
How Re-commerce Works: A Quick Overview
The working mechanism of re-commerce is as such:
- A product is originally manufactured and sold by a brand or retailer.
- After it has been used, the owner decides to sell it instead of throwing it away.
- The product is then resold through a re-commerce platform or marketplace, either directly by the owner or through a consignment model.
- The new buyer purchases the product at a discounted price, and the cycle continues.
Nowadays, there are large platforms that serve as marketplaces where individual sellers can list their products, such as eBay, Poshmark, and Depop. There are also curated re-commerce businesses that carefully select and resell secondhand goods, such as thredUP and The RealReal.
The key players in the re-commerce market are not just businesses but also individual sellers. While the former may operate on a larger scale, the latter plays an important role in keeping the cycle going by providing a constant supply of secondhand goods.
The business models for re-commerce can vary, but a common one is the consignment model. In this model, the seller sends their product to the re-commerce business, and once it is sold, the seller receives a percentage of the profit. The system allows for both parties to benefit while also promoting circular economy practices.
Packaging comes into play as well in the re-commerce process. Similar to how they were originally packaged, products are often shipped with minimal and sustainable packaging materials. Not only does this reduce waste, but it also aligns with the values of sustainability that many re-commerce businesses promote.
Environmental Impact and Sustainability of Re-commerce
If it were not for re-commerce, a product would only be used once and then discarded. Its life cycle would end, and it would contribute to the growing amount of waste in landfills. However, with re-commerce, a product can live on for longer, reducing its carbon footprint and overall environmental impact.
Re-commerce initiatives like trade-in programs, flea markets, thrift stores, consignment stores, and online groups all promote the reuse and recycling of goods. They also help to reduce the need for new production, which in turn reduces carbon emissions and resource depletion.
Additionally, many re-commerce businesses focus on sustainability in their operations. They may use renewable energy sources, promote eco-friendly packaging and shipping methods, and support ethical sourcing of products.
The main benefit of re-commerce is its support of the circular economy. In a traditional linear economy, resources are used, turned into products, and then disposed of. However, in a circular economy, the aim is to keep products and materials in use for as long as possible. The table further highlights the differences between the two.
| Aspect | Linear Economy | Circular Economy |
|---|---|---|
| Resource Flow | One-way: Take → Make → Dispose | Closed-loop: Make → Use → Recycle/Reuse → Regenerate |
| Primary Goal | Maximizing production and consumption efficiency | Minimizing waste and maximizing resource efficiency |
| Environmental Impact | High, due to significant waste generation | Low, as resources are reused and waste is minimized |
| Economic Focus | Short-term profit and high consumption rates | Long-term sustainability and resource regeneration |
| Material Use | Relies heavily on virgin materials | Prioritizes recycled, renewable, and biodegradable materials |
The Role of Packaging in Re-commerce Sustainability
Packaging has an integral role to play in the sustainability of re-commerce. As previously mentioned, sustainable packaging materials are often used when shipping products from seller to buyer. However, the impact of packaging goes beyond just reducing waste.
One of the biggest challenges in re-commerce is ensuring that products arrive to buyers in good condition. The packaging needs to be able to protect the product during transportation so that it can continue its lifespan in the hands of the new owner.
Packaging innovation comes into play here. Companies are constantly looking for ways to create packaging that is both sustainable and protective. For example, some companies have begun using biodegradable materials such as mushroom-based packaging, which can be composted after use.
Others have developed reusable packaging options that can be sent back and forth between buyers and sellers. For example, companies may compensate buyers for returning the original packaging, which can then be reused for future shipments.
What’s the Best Packaging for Secondhand Products
Packaging plays an important role in re-commerce. As a vendor or business that sells secondhand products, you need to get the packaging right.
Best Practices for Re-commerce Packaging
The best packaging for secondhand products depends on the type of item. Some items, such as clothing or books, may not need much protection and can be easily shipped in a paper or cardboard envelope. Others, like electronics or fragile items, may require more sturdy packaging, such as padded envelopes or bubble wrap.
You may also need packaging fillers to provide cushioning for the product. Some examples of eco-friendly packaging fillers include shredded paper, air pillows made from recycled materials, or biodegradable packing peanuts.
Here are some packaging options for common re-commerce goods people consume:
- Electronics: Since electronics can be delicate, it’s important to choose a packaging option that provides adequate protection. The best options include padded envelopes or boxes with cushioning materials inside, such as bubble wrap or foam inserts.
- Clothing: Secondhand clothes can be shipped in a paper or cardboard envelope, as they do not require much protection. A marketplace may have its own customized packaging for clothing, too.
- Books: A marketplace for books, such as online bookstores or secondhand book vendors, may opt for paper envelopes that are designed to withstand the weight of books. Some also use custom shipping boxes for larger orders.
- Home Decor: As they’re fragile, home decor items may require additional packaging protection. The packaging for home decor items may include bubble wrap or tissue paper. Then, there’s an additional layer of packaging protection in the form of a sturdy corrugated box.
For all these products, you can use a range of sustainable packaging options. These may be biodegradable, recyclable, or reusable materials. For example, instead of using plastic bubble wrap, you can opt for biodegradable bubble wrap made from recycled materials.
Successful re-commerce platforms and marketplaces tend to use sustainable packaging. For example, ThredUp uses sustainable packaging for all its orders. Their cardboard boxes are made from recycled materials and are fully recyclable.
Tips On Designing Your Packaging
Re-commerce packaging is more than just wrapping products; it’s an opportunity to connect with the market and demonstrate a commitment to sustainability. To stand out, businesses must adopt best practices that balance functionality, branding, and eco-consciousness.
Highlighting sustainability through proper labeling and branding is a powerful way to make your products more appealing. Clear, custom labels that emphasize recyclable, reusable, or biodegradable materials resonate with eco-conscious consumers.
Including QR codes on the packaging can link customers to your platform, showing your sustainability efforts and encouraging them to engage further. It’s also important to optimize packaging sizes. Use appropriately sized materials to reduce excess waste and cut transportation costs.
Right-sizing your packaging doesn’t just minimize costs. Customers appreciate when goods arrive safely and without unnecessary bulk.
Reusable and recyclable packaging options are imperative for industries participating in re-commerce. For example, reusable pouches, biodegradable boxes, or custom-fit packaging are great for maintaining quality while aligning with market expectations.
Finally, balancing cost efficiency and product safety is key. Lightweight yet durable materials, such as corrugated duct boards or padded mailers, make sure goods arrive intact while keeping expenses low.
You can further cut costs by purchasing packaging materials in bulk. Also, customize display boxes for products to build brand recognition in the re-commerce space.
Risks and Challenges in Re-commerce Packaging
Re-commerce packaging comes with its fair share of risks and challenges. Some of them include:
- Damage in Transit: At times, the packaging used may not be sturdy enough to withstand transportation. It could result in damaged products, leading to customer dissatisfaction and potential returns. Buying custom product boxes from reliable suppliers is a good way to avoid this issue.
- Counterfeit Products: It’s important that you use custom product labels for your re-commerce products. Doing this makes it difficult for counterfeiters to replicate and sell fake goods using your brand’s name.
- Environmental Impact: The primary concern with re-commerce packaging is its impact on the environment. While sustainable options are available, not all companies opt for them due to cost or convenience reasons.
When transporting and shipping high-value re-commerce goods, such as luxury bags or electronics, a big risk is theft or tampering. To prevent this, it’s important to use discreet packaging and tracking methods.
Customers also have certain expectations from your marketplace or platform, especially regarding sustainability. Failing to meet these expectations could lead to a negative perception of your brand. It’s best to avoid this by being transparent about your packaging choices and actively seeking more sustainable alternatives.
Predictions for the Re-commerce Industry
Despite its unique challenges, the re-commerce industry is expected to boom. By 2030, the industry will be worth $84 billion, which is double the size of the fast fashion market at the time.
More and more buyers are expected to consume secondhand goods due to their lower prices and eco-friendliness. Everything from secondhand clothing to high-quality items like pre-loved designer bags will be in demand.
Branded resale programs are also expected to become mainstream in the future. Major retailers will partner with online consignment platforms to offer secondhand options to their customers. The partnership will allow better quality control and a seamless shopping experience for buyers.
Technology will also be of paramount importance in the secondhand market. AI and data analytics will be used to predict demand, inventory management, pricing, and fraud detection.
Virtual reality may allow consumers to try on an item from the comfort of their own home, increasing buyer confidence and decreasing returns. Advancements in textile recycling technology will enable re-commerce companies to upcycle damaged goods or turn them into new materials.
Conclusion
Of the upcoming emerging markets, re-commerce is forecasted to change the game. Sustainable packaging is the way forward for businesses in this industry. It’s not only cost-effective but also encourages consumers to engage in more mindful consumption. As a re-commerce business, it’s about time you start optimizing your product packaging.
Use Sustainable Packaging For Your Re-commerce Business
Sustainable packaging helps re-commerce businesses align their values with their business practices. At Packoi, we supply eco-friendly packaging solutions that will keep your customers coming back for more. Get in touch to explore your packaging options.
