ReCommerce Business Model: Sell Refurbished Goods

ReCommerce business model is the latest buzzword in the e-commerce platform.  The e-commerce platform is rapidly changing, and ReCommerce is the latest innovation.

For those who are unaware of this new term, ReCommerce is an e-commerce platform that is developed to sell old and refurbished goods. This business model is also known as reverse commerce and reverse marketplace.  

A lot of companies have now adopted this business model. Companies buy obsolete products from the market and then refurbish them so that they can be sold again to consumers. This is ReCommerce in a nut shell.

Companies built around the ReCommerce business model have standardized prices. Furthermore, they have software and resources that help them to set prices of the products according to their age and market demand. Moreover, they also consider the condition of the product before putting up a price for it.

What is ReCommerce and how did it come about?

For most people, the word ‘ReCommerce’ is unheard of. The truth is that this business model has been shaped out recently. Old products tend to have a better shelf life and longevity than newer products.

Many manufacturers now use what is known as planned obsolescence. Planned obsolescence is a technique used by manufacturers to get the consumers to buy their latest products.

If your current smartphone or any electronic device is working fine, you will not buy a new one in most cases. Planned obsolescence is carried out differently by various companies. Companies no longer build products that are built to last.

In the past, most products used to be of high quality and worked perfectly fine for years if you took good care of them. However, this is not the case with new products. These products break down after certain years of use.

Moreover, some electronic products have new software updates that make them sluggish as well. This is planned obsolescence. This is the companies’ trick to get you to buy new products.

In short, ReCommerce was introduced to sell old goods online that were still functional.

Apple and the Battery Saga

Sometimes, a simple battery replacement in your smartphone can give it a new life. Apple admitted that they used to send software updates to slow down their older smartphones so that their batteries could keep up and provide optimal performance at all times.

Apple started offering free battery replacements for a limited time. Now, Apple replaces battery for $80. This shows that companies take steps to slow down devices. However, it was reported that a battery replacement fixed the performance issues that were faced by older phones.

This is evidence that you can refurbish your older products to breathe new life into them. Hence, this is why the ReCommerce business model is a lucrative platform for many investors.

ReCommerce Business Model and how it Works?

recommerce business models
ReCommerce Life-cycle

This business model has been employed different companies worldwide. Gazelle is a US company that is using this model. Recommerce Solutions is a French enterprise that employs this model. Bundli and Cashify are Indian companies that are based on ReCommerce.

There are many different business models. You can learn about the aggregator business model as well.

recommerce business model
Cashify, an Indian ReCommerce comapny

All these companies have at least one thing in common. All these companies buy old and broken products and then refurbish them to sell it. These refurbished goods are sold for profits.

Most of the products are sourced from consumers and companies. Firstly, products that are old and not wanted are bought. Secondly, these products are then sorted according to market demand and other metrics. Thirdly, products that are broken are then restored to working conditions.

Fourthly, these products are then checked if they are working properly. If they work properly, these products are repacked and prepared so that they can be sold. Lastly, the companies sell these products on their e-commerce platforms or directly to different companies.

What Makes ReCommerce Better than Online Classifieds?

We have various online classifieds available. The likes of eBay, Olx, Craigslist, and Quikr are just few examples of online classifieds. So, why should you choose a ReCommerce instead?

ReCommerce companies buy old products and then recondition them before selling. Online classifieds are nothing more than online platforms available to sell things.

When using an online classified, you are dealing with an unknown person. The person on an online classified is not a registered company and could possibly be a scammer too.

ReCommerce companies are registered businesses with the government. You can always take these companies to court if they fail to meet the promised criteria. Transactions tend to be more secure through these companies.

Also, these companies operate as a middleman when you buy refurbished products. They buy the old products and restore the products to working condition before they are sold. This is not guaranteed when you buy from online classifieds.

Moreover, when buying or selling through an online classified, you are exposing your personal details to everyone who uses the online classified. ReCommerce companies only use your personal details to fulfill your order and this data is not exposed to thousands of people online.

Lastly, ReCommerce companies also take care of logistics.

Benefits of ReCommerce Business Model

recommerce business models
Benefits of ReCommerce Business Model

There are a host of benefits of the ReCommerce business model, both for the companies and the end users.

Not everyone has the budget to buy the latest electronic goods. ReCommerce companies provide working products at affordable prices. Moreover, they also provide options to consumers who are looking to buy older models of certain products.

This particular model helps to stop the wastage of resources. Reusing old products instead of buying new ones helps to fight climate change. Also, refurbished goods have reasonable price tags which make them a good deal.


ReCommerce business model is a branch of e-commerce platform. ReCommerce is about buying old and obsolete products so that they can be refurbished and then sold for profits. ReCommerce companies are the better alternative to online classifieds. They keep your privacy intact and protect you from scammers.

Also, ReCommerce companies provide working products at affordable prices. They also decrease the wastage of resources.

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