From Returns to Revenue: Why Recommerce is Retail’s Sustainable Advantage

From apparel to consumer electronics, what happens to excess or customer returned merchandise has become increasingly important to both consumers and companies. While excess inventory is a natural byproduct of retail, it places enormous stress and additional costs on retailers and distribution networks that are not optimized for the reverse flow of goods. The financial impact is huge, with returns alone costing retailers over $890 billion in 2024.

For the inventory that can’t be restocked back on primary store shelves (due to the associated cost, product obsolescence, or obvious signs of use), recommerce is fundamentally transforming how businesses approach these goods and move them out of warehouses. 

Rather than allowing returned or excess goods to end up in landfills, companies are leveraging the secondary market to resell, refurbish, or recycle products– extending product lifecycles and fostering a circular economy. This shift from a linear “take-make-dispose” model to a circular system of reuse and resale is not only supporting sustainability but is boosting bottom lines.

The financial impact and economic opportunity of recommerce

Recommerce is more than a trend; it’s a practical, scalable solution experiencing remarkable growth. The global recommerce market (including salvage dealers, liquidators, resellers, and more) is projected to nearly double by 2029, reaching over $700 billion and outpacing overall retail market growth. For companies still relying on limited buyers or manual resale methods for excess and returned inventory, there’s substantial value left untapped. Beyond unlocking new revenue streams and operational efficiencies, recommerce helps businesses reduce costs related to waste, storage, and inventory management through streamlined logistics and refurbishment processes. Additionally, companies offering certified pre-owned products and trade-in programs can build stronger brand loyalty with budget-conscious and sustainability-minded consumers, driving higher repeat purchase rates and creating a sustainable revenue model that goes beyond initial sales. 

Recommerce is not just benefiting large retailers and brands; it’s an engine for job creation. As the recommerce market expands, it drives demand for skilled labor in refurbishment and repair centers, logistics and fulfillment operations, and technology and data management roles that optimize supply chain efficiency. Beyond big players, recommerce creates opportunities for small businesses and entrepreneurs in local resale and repair markets. Overall, the industry builds sustainable value chains that require a wide range of workforce skills, supporting communities and driving economic growth as the market continues to scale.

Recommerce’s role in sustainability

Recommerce reshapes the environmental landscape of retail by transforming the way products are used and reused. By extending the lifespan of goods, recommerce dramatically reduces waste, keeping countless items out of landfills. This isn’t just good for business; it’s a crucial step toward a more sustainable retail ecosystem.

What’s fueling this shift? Two generations, Gen Z and Millennials, are reshaping consumption norms with a preference for purposeful, socially conscious shopping. They're drawn to retailers and brands with genuine sustainability commitments. With landfilling no longer a viable option, retailers and manufacturers face mounting pressure to adopt environmentally responsible channels that extend product life and close the loop on waste. Recommerce answers that call, helping turn the old model of buy-use-dispose into one of reuse and real impact. Sustainability is no longer a "nice to have”; it’s becoming a baseline expectation for many consumers, and companies seen as authentic leaders gain loyalty and often command a pricing premium.

Meeting consumer demand

Surveys show that many retailers are already aware their customers are engaged in recommerce. One recent study found that 86% of retail executives believe their consumers are turning to resale and secondary markets. The data is compelling: In 2025, 70% of consumers reported buying secondhand goods either for sustainability or economic reasons. It’s no wonder resale marketplaces are thriving and the popularity of bin and discount stores are on the rise.

Beyond that, resale is no longer limited to apparel; categories like electronics, home goods, and furniture now comprise the bulk of secondhand purchases, widening the appeal of recommerce. 

Smarter resale starts with technology

In addition to supporting a more circular economy, an efficient B2B recommerce program can help companies maintain a healthy inventory turnover rate and minimize holding costs by quickly converting customer returns and excess inventory into cash. And, with the right tools, it can even boost an organization’s overall operational efficiency.

This is where an online B2B resale platform—one that’s backed by technology and data and offers multiple channels to sell inventory—can help solve the problem. Some of today’s biggest brands and retailers are leveraging a B2B resale platform as a centralized hub for all their secondary market resale needs. By moving everything onto one online platform, these companies have a single system of record and are able to tackle what’s historically been a highly fragmented and manual process.

However, not all B2B resale platforms are created equal. When choosing a B2B recommerce partner, be sure to look for one that provides:

An extensive buyer network. Ensure access to a broad, thoroughly vetted community of business buyers interested in a wide range of product categories and conditions, maximizing your chances for quick and profitable sales.

Flexible resale options. Whether your primary objective is to maximize recovery, free up warehouse space, or maintain strict brand control, leading partners will tailor a flexible, multi-channel resale approach to align with your business goals.

Fast inventory turnover. Reducing warehousing time is critical. The right partner will provide expert guidance and proven processes to help you move large volumes of inventory quickly and consistently.

Advanced pricing and performance analytics. Leverage robust data and analytics to understand market trends, anticipate buyer demand, and optimize resale pricing for every inventory type and season.

Comprehensive program management and support. Look for a partner with a dedicated team that offers strategic guidance, optimized merchandise listings, and responsive customer support, ensuring your recommerce program delivers consistent results.

Building a sustainable future for retail

As the retail landscape evolves, recommerce stands out as a win-win solution delivering environmental benefits, economic gains, and a more sustainable future for businesses and consumers alike. By embracing data-driven platforms along with circular economy principles and practices, companies can not only reduce waste and conserve resources but also unlock new revenue streams for excess inventory and strengthen customer loyalty.

With consumers increasingly seeking value and sustainability, and the global recommerce market set to soar, now is the time for brands and retailers to rethink their resale strategy. While the amount of returned and overstock inventory continues to grow, the need for recommerce solutions - to find products a second life - has never been greater.