What is reCommerce – Challenges | Oppportunities & Top Companies


Might be you are aware of eCommerce where buying/selling of products and services on internet takes place. Product on internet is one click away since the advent of eCommerce industry.  Now there is a new trend/business model in eCommerce industry is reCommerce. Getting the better quality product at a reasonable cost helped to grow the need of this industry.


What is reCommerce?

Recommerce is also known as reverse commerce, it means selling used goods/products, previously owned mainly in electronic industry such as mobile phones, laptops by offline or online mediums.

You might have heard “refurbhised” from your friends or relatives; it means selling the used product by removing all the issues and repair/redecorates if necessary them to sell again, either physically or virtually on websites.


Benefits of reCommerce

Fair Price/Low Price & Eco Friendly

This type of business modles is gaining popularity amongst customers because it allows customers to get a fair price of the used products or old accessories. Price is very much low because goods are already used and customers get a chance to use expensive products in low costs. With Low price it is eco friendly as well because it is a form of recycling. Product/Goods usually changes 2-3 times by consumers before reaching the end of products life cycle.

What is recommerce?

Business opportunity

All the eCommerce market is covered by Amazon, wallmart, flipkart etc. Now this is a new trend of moneymaking is known as Recommerce.

There is OLX, quickr in the market to fulfill the and manage the C2C(customer to customer) business model, now the website like gazelle, cashify, usell, nextworth comes into the market as a reCommerce company as a similar + additional feature in their websites. Refurbished products are different than the ones available at OLX, quickr where one can get used phones, neither the phone repaired nor provided a warranty.



It will bring numerous job/employement opportunities in India in the field of technical inspection, marketing (digital/traditional), customer service, transportation/logistics, accountants etc.


Challenges Faced in reCommerce Industry

Logistics Costing

One of the biggest challenges that eCommerce industry in india faced is product returns.  Returns of goods inflated the cost of goods, on an average 25%, means extra costing of reverse logistics/returned product. Increasing logistics (reverse logistics) cost can play a significant role in discouraging reCommerce companies to get the margin which are usually very thin.


Trust and Credibility Factor

When purchasing a renovated or redecorated product, consumer will always be in dilemma about the product. Will that product be ok? Will it work properly or not?   These questions will always be revolving in customer’s mind.


Product Quality

Another Important challenge is product quality, there is thousands of seller in the refurbishing industry but consumer have no way to determine the quality of replaced parts. In order to detect the performance one can’t decide product’s performance in a week; at least one month is needed to decide whether the product is good or bad.


Reverse Commerce/ reCommerce Solutions

To overcome this problem amazon, bestbuy and some other websites analyzed the consumer behavior and started offering refund policy which is within 90 days, consumer can use or extend the coverage of refurbished goods as well.

So Amazon offers 90 days refund policy on certified refurbished products which meets the standard but apple confines you to just 14 calendar days only. This would be one of the effective business models.


Top reCommerce Companies/reCommerce businesses

  • Ebay
  • Nextworth
  • Craiglist
  • Swappa
  • reBuy
  • Gazelle
  • Rebagg
  • ThredUp
  • SchooLa
  • Recommerce
  • Twice
  • Yatego GmbH


Top reCommerce Companies in India

  • Budli
  • Moswap
  • Cashify
  • Karma Recycling



reCommerce in India

reCommerce(reverse commerce) was entered in India about 5 years ago, whereas amazon launched certified refurbished store roughly 3 years ago has smartphones, laptops, watches, tablet devices like kindle.  The facilities like recycling, renting, trade-in not yet available. It is anticipated that refurbished market will cross  $12-15 billion by the year 2020. So the Indian market showed the interest in refurbished items.


Leave a Reply