Second Hand: Key Benefits and Tips

The second-hand market is booming. It's worth over 128 billion euros worldwide (source: Tripartie), and more and more buyers are turning to this type of product. After reading this article, you'll know all about second-hand goods, their advantages and how to make the most of them.

What is second hand?

Second-hand products, also called pre-owned or refurbished products, are products that have already been owned by a buyer and are being offered for sale again. In short, we give these items a "second life" by enabling them to be used again by a new buyer.

More and more consumers are turning to pre-owned products every year. In 2023, 52% of French people planned to give second-hand items as Christmas presents, compared with just 20% in 2021. Online sales sites and marketplaces are the preferred place for these purchases. According to Fevad, 45% of online shoppers bought at least one second-hand product in 2023.

These items are therefore rich in opportunities, and many retailers are well aware of this. In fact, 29% of them were already offering second-hand products in France in 2023(ACSEL barometer, 2024).

Advantages of refurbished products

Second hand products offer many advantages, both for sellers and their customers:

Second hand advantages for customers

• Cost savings: these products are generally less expensive than their new equivalents;
• Quality products at lower cost: the lower price allows consumers to discover brand-name or higher-quality products, which the new price might put off;
• A wider variety of products: buying pre-owned allows access to items that are no longer on sale. This is particularly true of fashion items, whose availability is limited in time depending on catalogs;
• Reduced environmental impact: buying a refurbished item reduces its impact at every stage (production, transport, packaging, etc.). What's more, buying second-hand extends the life of products, which drastically reduces the volume of waste generated.

Second hand advantages for sellers

• Better margins: second hand products often generate higher margins, especially on refurbished or reconditioned items. In fact, the cost of putting them back on sale is generally lower than their production cost;
• Attract a new customer segment: as we saw earlier, second hand market is booming, and new types of customer are emerging. Selling this type of item is a way of attracting this clientele;
• Improving brand image: consumers are increasingly aware of brands' eco-responsible initiatives. 72% of French people say they choose environmentally-friendly products (Fevad, 2024). Giving a second life to your products can therefore become an asset for your brand image;
• Better inventory management: putting back on sale products returned by your customers, or unsold items from the previous season, is a good way to limit your inventory while generating additional sales.

 

How can I sell pre-owned products online?

To sell pre-owned goods online, you have several options:

• Create an e-commerce site: a site dedicated to your products, which you can configure and customize as you wish. This option gives you the advantage of flexibility, but requires significant investment (site construction and maintenance, audience development, search engine optimization, etc.);
• Join a marketplace: your products are sold alongside others on a virtual marketplace. This option has the merit of limiting the effort required on your part for technical aspects and product promotion (the platform takes care of this). What's more, it allows you to benefit from the reputation of the chosen marketplace, making it easier to reach a large number of customers.

At Rakuten, you can combine both approaches. In fact, becoming a Rakuten seller allows you to create your own E-Shop on our marketplace, a fully customizable space dedicated to your store. This means you can keep control of your brand and customize your visuals and customer experience to your heart's content.

Once you've made this choice, it's essential to adapt your strategy to selling second-hand goods online. Consider the following elements in particular:

• Product selection and evaluation: Identify items that are likely to be resold, whether they are returns, end-of-series items, reconditioned items, etc. Make sure that these products meet customer expectations. Make sure these products meet your customers' expectations.
• Reconditioning and reconditioning: If necessary, carry out repairs or reconditioning to ensure that products are in good working order and appearance before they go on sale.
• Effective presentation: Present your products attractively on the e-commerce site or marketplace of your choice. Use detailed descriptions, quality photos, and highlight the economic and environmental benefits of these purchases.
• Customer service: Offer quality after-sales service, with return and warranty policies adapted to second-hand sales, to reassure potential buyers.

Second-hand, at the heart of Rakuten's DNA

At Rakuten, second-hand is a historic pillar of our growth in France, and an essential marker of our identity. Today, one out of every two products sold on our marketplace is refurbished. We have more than 50 million pre-owned product references, and their sales are growing fast. During Black Friday 2023, for example, 43% of products sold were second hand.

To encourage our customers to turn to these products, we have also created the Vision'R badge, a system that rewards second-hand purchases. We were also keen to remove disincentives to the purchase of refurbished products. Our CeRtifié reconditioned program and our buyer protection guarantee customers quality, functional products. These initiatives enable our sellers to reach more and more customers, for the benefit of all.

Do you sell second-hand products, or would you like to start doing so? Then don't wait any longer! Join our 12,000 sellers and embark on the Rakuten adventure!