In the rapidly evolving landscape of the fashion and textiles industry, a transformative trend is taking center stage: recommerce. This practice of buying and selling pre-loved items is ushering in a new era of sustainable and mindful consumer behavior.
We spoke with AFC Patron member, eBay to discuss the growing rise of recommerce as well as the strategies they've employed to solidify their position as the original hub for pre-loved fashion.
During our discussion, we explored the economic and sustainable advantages to recommerce, uncovering key insights that brands should consider before embarking on their resale journey.
The Current State of Recommerce
In recent years, recommerce has surged in popularity, reflecting a significant shift in consumer trends. Pre-loved fashion has transitioned from a niche market to mainstream acceptance, presenting a unique opportunity for brands to align with the evolving values of consumers.
Research commissioned by eBay Australia revealed that nearly half of Australians (45%)1 surveyed have increased their purchase of pre-loved fashion over the past two years, firmly establishing the mainstream appeal of this sustainable practice. Shoppers are driven by various motivations, including the desire to find unique items while saving money (70%)2, expressing their personal style (55%)3, and supporting the circular economy (40%)4.
eBay, a longstanding player in recommerce, has solidified its position as the original hub for pre-loved fashion. Despite its history, eBay remains forward-thinking, leading through constant innovation. Collaborating with partners like The Volte and making strategic acquisitions (e.g., Certilogo), eBay prioritises staying ahead in recommerce and building trust with consumers and brands alike.
Continual innovation is a priority, with eBay recently launching the Circular Fashion Fund, investing $200,000 in entities advancing fashion circularity.
High Demand for Pre-Owned Fashion
Pre-loved fashion items are in high demand in the recommerce market. In 2022, Australian fashion labels, including well-known brands like Zimmermann, Aje and Scanlan Theodore, were so sought after on eBay Australia that they were searched for every two minutes7.
Equally, eBay reported a staggering 16 million pre-owned items were listed in previous years8, and a piece of pre-loved clothing is sold every 30 seconds on eBay9 highlighting the growing appetite for pre-loved fashion.
Benefits of Recommerce Solutions to Brands, Customers, and the Planet
Recommerce presents a win-win scenario for consumers, brands, and the planet:
Brands: With increased purchases and demand for pre-loved fashion, recommerce offers brands the opportunity to generate new revenue streams while tapping into eco-conscious and price-conscious consumers. There is a huge opportunity for brands, with the global secondhand market set to nearly double by 2027, reaching $350 billion, and is expected to grow 3x faster on average than the global apparel market overall, according to a report by thredUP, an online consignment and thrift store10.
Customers: Value remains a paramount factor for customers, with 56% of buyers and 64% of Gen Z buyers specifically drawn to the financial savings offered by recommerce11. Beyond cost savings, the appeal lies in the opportunity to experiment with unique styles. Embracing pre-loved clothing aligns with the desire for sustainable practices, allowing consumers to make environmentally conscious fashion choices.
Planet: Recommerce plays a pivotal role in curbing fashion waste, addressing a significant concern as Australians purchase 56 new clothing items annually but wear less than two-thirds of their wardrobe.
In 2022, the eBay Recommerce market not only generated $4.6 billion in positive economic impact but also prevented 1.6 million metric tons of carbon emissions and 73,000 metric tons of waste12. By actively participating in recommerce, individuals contribute to a more sustainable and circular fashion ecosystem, promoting responsible consumption.
Key Considerations for Brands Incorporating Recommerce
Before embarking on a resale program, brands should consider:
Recommerce is propelling the fashion industry toward a new horizon while serving as a versatile tool for expediting progress toward the just transformation of our industry to a socially, environmentally and economically prosperous one.
Encouraging clothing reuse, recommerce holds significant potential to substantially mitigate fashion's environmental impact, in alignment with the AFC’s clothing circularity by 2030 and Net Zero by 2050 objectives. It empowers both brands and consumers to extend product lifecycles, ultimately reducing waste and minimising resource depletion.
Last week, eBay Australia, in collaboration with the Australian Fashion Council (AFC), proudly announced Dempstah as the recipient of eBay’s 2024 Circular Fashion Fund, marking a significant stride in advancing circular fashion in Australia, learn more about the 2024 winners here and stay tuned for the announcement of the 2025 eBay Circular Fashion Fund.
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