Recommerce sales continue to be a significant part of eBay’seBay -1% business, driven especially by the younger generations who are considered both buyers and sellers on eBay. "We're seeing an increase in shopping in terms of recommerce. Remarkably, 40% of our (eBay’s) gross merchandise value (GMV) now comes from recommerce,” said Renée Morin, chief sustainability officer at eBay. The growth aligns with the company’s goals and consumer preferences towards contributing to a circular economy. In eBay’s 2024 Recommerce report, over 70% of consumers surveyed globally plan to spend on recommerce/pre-loved goods this year.
Younger Generations Driving Pre-Loved Purchasing
One major driver of recommerce's popularity is the evolving consumer mindset, especially among younger demographics like Gen Z and Millennials. These groups prioritize environmental sustainability in their purchasing decisions. "Our younger demographics really do care and consider more environmental and sustainability aspects when purchasing,” said Morin. This shift is reflected in the positive perception of thrifting and the appeal of purchasing pre-loved goods as a way to contribute positively to the environment and save money, with 58% of Gen Z saying that generating extra cash is a primary motivator for selling pre-loved goods.
Fashion Apparel In The U.S. Market
The fashion apparel resale market in the U.S. will grow from 16.8% of the ecommerce resale volume to 18.7% by 2027, representing an estimated $17 billion in volume. The total recommerce market will be $259 billion including online and in-store sales volume. The shift to buying pre-loved fashion goods stemmed from the pandemic, but the behavior has remained consistent with consumers. On eBay globally, the number of items labeled as thrift in the description has increased by over 400% in the clothing, shoes, and accessories categories for March 2024 compared to the previous year. Most eBay consumers (60%) say buying pre-loved goods has become more important to them. Morin discussed how the top categories in fashion recommerce sales include luxury watches, handbags, and sneakers.
EBay Leans Into Recommerce Fashion Trend With AI
Several initiatives have been launched at eBay to heighten awareness and make meaningful choices easier for consumers, including the ‘Shop the Look’ feature. Additionally, AI advancements have enabled personalized interactions, such as the Earth Day campaign where personalized videos thanked consumers for their eco-friendly purchases. "We produced over 100,000 personalized videos for Earth Day, thanking buyers for participating in recommerce,” said Morin.
Looking ahead, Morin is optimistic about continuing to leverage AI and other technologies to advance recommerce and improve the shopping journey for buyers and sellers.
Technological advances can help with authentication, a key component of building the trust factor with consumers in the resale market. EBay has already developed technologies that help with this process to ensure consumers are receiving authentic goods, and the company has measures in place to mitigate counterfeit goods sales. AI can also help with streamlining the listing process and inventory management across various categories of merchandise. EBay has introduced AI tools that make it easier for sellers to post product information and enhance product images.
Recommerce Day in May
The company has proposed a Recommerce Day on May 21 of every year which has began to get traction with state and local governments. A resolution was introduced in the California State Legislature and the city of San Jose, CA, declaring May 21 as Recommerce Day. “Recommerce buyers are looking for value, passions, and meaning in their purchases — with the added benefit of sustainability. Together, we’re propelling the Era of Recommerce,” claims Morin.
Continued Awareness For A Sustainable Future
EBay is broadening its awareness of recommerce by introducing live events between buyers and sellers and partnering with celebrity Alicia Silverstone, a sustainability advocate. The company is doing pop-up shops like the eBay’s Metaverse Marketplace booth during New York Comic Con 2023. Morin discussed how the company is building a strong community between buyers and sellers fueling continued interest in the recommerce market.
Increasing awareness and staying focused on sustainability efforts will help to educate consumers about the pre-loved market. "We need to make it easier for people to shop for recommerce... making meaningful choices easier for consumers,” said Morin, explaining the goal of promoting sustainability through education and ease of use. Addressing the paradox of fast fashion's growth despite negative sentiment, Morin suggested, "Sometimes consumer sentiment precedes the actual trend. We're feeling it but consumer behavior might trail a bit."
The Era Of Recommerce
Recommerce is experiencing robust growth, driven by a shift in the consumer mindset towards sustainability and innovative initiatives that make eco-friendly choices easier. With the official recognition of Recommerce Day and the integration of AI for personalized experiences, the future of recommerce looks promising and poised for continued expansion.
The eBay Recommerce survey was conducted in March 2024 by Censuswide with a sample of 16,052 General Consumers (aged 18+) across the U.S., U.K., Canada, Germany, France, Italy, Spain, Australia, and Japan. The survey also included 12,515 of eBay’s consumer-to-consumer (C2C) sellers in the U.S, U.K., Canada, Germany, France, Italy, Australia, and Japan.