A practical guide to recommerce in 2026

With consumer focus on sustainability growing and economic pressure, buying pre-loved is more popular than ever. In this article we’ll explore the why, what and how of recommerce:

• What is recommerce and why is now the right time to set up recommerce for your business?
• What does an ideal recommerce model look like for your business?
• How to build your recommerce processes: Should you build, buy, or partner
• Recommerce operational basics
• Measuring success: The metric stack
• How Australia Post helps deliver your sustainability, recommerce and returns initiatives
• Getting started with recommerce: Common questions

Plus, you can download the Getting started with recommerce workbook (XLSX 119kB) to start assessing whether recommerce is right for your business and the best approach for you.

What is recommerce and why is now the right time to set up recommerce for your business?

Recommerce is the structured resale, rental or take-back of products by the original brand. Many merchants hear 'recommerce' and assume it's a large-brand initiative – something for Patagonia or The Iconic, not for a mid-size retailer with a lean team and tight margins. That assumption can lead to missed opportunities.

Recommerce has moved from sustainability PR to commercial strategy. 46% of Australians buy secondhand items annually.² The Australian recommerce market is forecast to be valued at USD$6.75 billion by 2029.³

Top categories shoppers want to buy second-hand²

• Books and music – 42%
• Homewares – 35%
• Collectables – 35%
• Electronics – 32%
• Fashion – 30%
  

Shopper perspective: pros and cons of second-hand shopping

Although recommerce is gaining traction, many shoppers are still more comfortable with shopping new than pre-loved.

Recommerce pros and cons from the shopper perspective

Cons are easily overcome though, 45% of shoppers say that buying directly from a retailer or dedicated recommerce platform addresses the core concerns around trust and quality.²

Anne-Marie Cheney, Head of Recommerce at eBay explains, “Consumers are no longer choosing between new and second-hand. Instead, they are blending both seamlessly depending on the occasion, category or brand. This shift reflects how recommerce has moved into the mainstream, supported by digital platforms that make second-hand shopping accessible, trusted and easy. We’re shifting away from single ownership to fashion enthusiasts happily wearing an item someone else has loved or renting a dress for a special occasion from someone else’s wardrobe. Just like we share cars (via Uber) or houses (via Airbnb) that same mindset has now shifted into fashion.”

The infrastructure to participate in recommerce has never been more accessible for merchants of any size. In this guide we’ll make the commercial case first. The sustainability story is real and worth telling, but recommerce programs that lead with environmental credentials internally can struggle to secure budget and operational buy-in. Frame this as a business decision and the sustainability dividend takes care of itself.

What does an ideal recommerce model look like for your business?

Before choosing if and how recommerce can work for your business, it helps to understand the four most common approaches. Each has different pricing, resource requirements and brand reputation opportunities.

The four approaches are:

1. Resale
2. Rental
3. Refurbishment
4. Take-back and recycling

1. Resale

In a resale recommerce model, products are returned, graded and resold through a secondary channel - either your own store, a dedicated recommerce platform, or a third-party recommerce marketplace. This is the most commercially straightforward model and the right starting point for most merchants.

Example: Tarkine - RE-RUN Program

Australian running shoe brand Tarkine converts lightly worn returns and sizing trials into a curated secondary line called RE-RUN. Items are inspected, cleaned and relisted at a discount, with customer reviews frequently noting they appear brand new. Rather than discounting into clearance, Tarkine built a distinct sub-brand with its own identity and genuine commercial value.

2. Rental

In a rental recommerce model, products are loaned to customers for a defined period, then returned, cleaned and loaned again. Economics depend heavily on durability and average order value. Workwear, occasion wear and outdoor equipment tend to perform well. 

Example: The Volte

Australian retail leaders including David Jones, Alice by Alice McCall, Bianca Spender and Ginger & Smart are ‘Circular Partners’ with The Volte. There are two options - brands can rent their stock out via The Volte or enable their customers to rent out garments they’ve purchased (peer-to-peer).

Logistics are standardised through Australia Post. The Volte automates generation of pre-filled shipping labels to simplify the return process for both the lender and the borrower. 

3. Refurbishment

In a refurbishment model, used products are repaired, restored or upgraded before resale. This approach requires more operational infrastructure than basic resale but enables brands to achieve higher prices and stronger brand positioning. Electronics, adventure wear and footwear are natural fits.

Example: Patagonia – Worn Wear

Patagonia Worn Wear is a program focused on keeping outdoor gear in use and out of landfills. It allows customers to trade in their functional used clothing for store credit. Used clothing is repaired, cleaned and resold.

4. Take-back and recycling

In a recycling model, products are accepted at end of life for responsible disposal, recycling, or material recovery. This is the least commercially complex model but also the least commercially rewarding. It works best as a brand signal and a complement to a resale program rather than a standalone strategy. 

Example: IKEA Australia - Buy Back & Resell

IKEA accepts used furniture at select metro stores, assesses condition and resells at reduced prices in-store. Currently being piloted for scalability, it follows their established European model. For a brand built on affordability, a certified secondhand aisle is a natural extension of the value proposition.

Example: rebel – Sports gear recycling

Rebel Sport partners with the AFL and TreadLightly, offering in‑store collection points for recycling end‑of‑life sports shoes and sports balls. The program diverts waste from landfill by turning recovered rubber, leather and fibres into products like gym mats and retail flooring. Rebel is one of several major retailers supporting the national initiative to reduce sports‑industry waste.

How to build your recommerce processes: Should you build, buy, or partner?

For most small to medium merchants, the answer is to partner and assess recommerce demand, before building infrastructure of your own. Building your own infrastructure requires significant capital and volume.

“Channel strategy plays an important role. While owned resale channels offer greater control, marketplaces like eBay can help businesses scale quickly, test demand and move inventory efficiently,” says Anne-Marie Cheney, Head of Recommerce at eBay. “A blended approach is increasingly common, allowing brands to balance reach, control and operational efficiency.

“Ultimately, the businesses best positioned for success are those that treat recommerce as a strategic extension of the customer lifecycle rather than a short-term clearance solution. By embracing resale, brands reinforce the quality and longevity of their products, remain relevant to evolving consumer values and participate meaningfully in the growing circular economy.” There are a range of approaches to consider. 

Consumer-led resale

There are also consumer-focused solutions that bridge the gap between a new purchase and the reselling pre-loved goods. These tools leverage a brand's existing ecosystem to make reselling frictionless for customers. If you offer certain payment or tech integrations, your customers may already have access to these circular economy tools without you realising.

Payment-led integrations

Payment solutions are expanding their offerings to embrace recommerce. For example, if you offer Klarna, the Klarna x eBay integration launched in Australia in early 2025 allows customers to easily list items they’ve purchased on eBay later. Product details, images and pricing are pre-filled directly from their Klarna purchase history.

White label resale partners

Some brands are opting for a more integrated approach. For example, DECJUBA partnered with Authentified to launch a one-click resale experience. Instead of leaving the brand’s ecosystem, customers can log into their DECJUBA account and list past purchases for resale instantly. Authentified manages the listing, customer service and authentication while the brand maintains the relationship with the customer throughout the product's entire lifecycle.

Case study: Australia Post National Circular Textiles Pilot

Our National Circular Textiles Pilot helped us understand what turns customer interest in circularity into real‑world participation.

The National Circular Textiles Pilot was a real-world trial designed to help create a more circular clothing economy in Australia.

Australia Post partnered with R.M.Williams, REMONDIS, BlockTexx and iQRenew. The initiative illustrated how working across industries can turn big ideas into real, practical solutions.

Learnings

Clear instructions, convenient drop‑off points and transparent, trusted handling of items all contributed to strong participation. Using channels customers already know and trust, such as Post Offices, Parcel Lockers and Street Posting Boxes reduced friction and helped broaden engagement. When participation feels easy and credible, momentum builds and circular outcomes are more likely to follow.

Recommerce operational basics 

The romantic version of recommerce where customers sell back to the brand and you resell at a margin skips the operational layer. This layer determines whether a program contributes to your bottom line or simply erodes your revenue. 

Anne-Marie Cheney, Head of Recommerce at eBay explains, “For businesses, recommerce presents a compelling opportunity to unlock value from pre-loved, repaired or returned inventory that would otherwise be discounted or written off. It enables brands and retailers to reach new customers, extend the lifecycle of their products and align with growing expectations around sustainability and circularity.

"However, recommerce also introduces operational complexity. Unlike traditional retail, it requires processes for intake, inspection, grading, pricing and presentation, all of which need to be executed consistently to maintain customer trust. Businesses that succeed tend to invest in clear condition standards, transparent product information and strong operational discipline.” 

Is your product recommerceable?

Not every product category is ideal for recommerce. Before diving into your recommerce program, it’s essential to ask the question: is your product appropriate for recommerce? 

High-performing recommerce categories include fashion and footwear, outdoor and activewear, home goods and furniture and electronics. Low-performing categories include consumables, fast fashion and anything with high hygiene sensitivity. 

Although not hard and fast rules, this checklist can prompt valuable considerations before you commit. 

Product recommerce viability checklist 

• Average order value above $60-80 - below this, handling costs can erode margin quickly.

• Product durability - does it hold its form, function and appearance after use?

• Secondary market demand - are people already buying your category secondhand on eBay, Facebook marketplace or Depop?

• Return rate - higher return rates mean more raw inventory for a resale program

• Brand equity - does your brand name carry value that makes secondhand buyers trust quality?

Your recommerce cost stack 

Once you’ve established your product is a good candidate for recommerce, it’s time to calculate the cost of an item. You can calculate this using our Getting started with recommerce workbook (XLSX 119kB). Consider these costs: 

• Inbound return shipping 

• Receiving and sorting labour 

• Grading and inspection labour 

• Cleaning / refurbishment 

• Photography and listing (if manual) 

• Platform or integration fee (% of sale) 

• Inventory carrying cost per day 

• Customer service allowance per unit 

Grading and condition standards 

A well-defined grading rubric everyone in your team understands and adheres to is essential. Without it, ‘like new’ means something different to every team member and customer trust can be eroded. A simple three-tier system works for most categories.

Photography and listing 

Second-hand buyers are more anxious than new buyers. They’re making a trust decision as much as a product decision. Invest in consistent photography and honest condition descriptions.  

If you use an integrated platform like AirRobe, it may automatically populate listings with the original new product images. Ensure these are accurate and include images of the pre-loved garment and any wear if necessary to show it’s actual condition.  

Measuring success: The metric stack 

Measuring the success of your recommerce program from day one and consistently monitoring metrics on a monthly basis is essential to optimise your program and ensure it’s tracking towards profitability.  

Decide how and where you’ll measure these metrics. 

Commercial fundamentals 

• Recommerce revenue 
  Track absolute value and as a percentage of total revenue. 

• Gross margin 
  Compare this to your new goods margin after factoring in the full cost stack. 

• Returns cost savings 
  Measure the difference between processing a standard return versus a recommerce item. 

Customer metrics 

• New customer acquisition 
  What percentage of recommerce buyers are new to your brand?  

• Cross-purchase rate 
  How many recommerce buyers purchase a full-price item within 12 months? This is an important metric to watch. 

• Retention uplift 
  Check if recommerce participants stay with your brand longer than non-participants. 

Program health 

• Sell-through rate
  Aim for at least 70% of stock sold within 60 days. Unsold secondhand stock has a high carrying cost. 
• Average days to resale
  Monitor how long inventory sits in the warehouse.

How Australia Post helps deliver your sustainability, recommerce and returns initiatives

Australia Post aims to keep resources in use longer through its 2030 Sustainability Framework (PDF 2.3MB). By leveraging national infrastructure, the organisation helps businesses and communities participate in a circular economy while reducing environmental impact.

Growing customer appetite for recommerce is creating new opportunities to advance circularity. By keeping products in use for longer and at higher value, recommerce helps keep preloved items out of landfill. To build on this momentum and expand participation, the recommerce experience needs to be simple, convenient and easy to use.

Strengthening your reverse logistics

Australia Post provides the essential backbone for recommerce. By supporting major marketplaces and circularity projects, it offers the trusted handling and national reach needed for programs to grow with confidence.

Simplifying the returns experience

A seamless returns process is essential for a successful recommerce model. Australia Post offers a range of returns services that make it easier for your customers to send items back, which helps you recover and resell products faster.

• Printer-free returns: Customers can drop off items at Post Offices or select Parcel Lockers by simply showing a QR code on their phone.
• National coverage: Your business can offer consistent return options to customers across the country, no matter how remote they are.
• End-to-end tracking: Both you and your customers stay informed with real-time tracking, which reduces customer service enquiries and improves trust.
• Flexible integration: You can integrate these returns services directly into your processes or use the Australia Post returns portal (for Parcel Send users with Australia Post and StarTrack accounts) to manage the process without complex technical setups.

Getting started with recommerce: Common questions 

What are some recommerce benefits?  

Recommerce benefits include:

• Customer acquisition: Lower price points bring in new shoppers who often transition to buying new goods as they become familiar with the brand.
• Cost recovery: Reselling returns or trade-ins recovers value from stock that would otherwise be written off.
• Customer retention: Trade-in schemes give shoppers a reason to return to the store and spend their credit on new items.
• Waste reduction: Keeping products in use longer reduces the amount of stock sent to landfill.

What is reverse logistics?  

This is the physical process of moving product from the customer back to you. It covers everything from the moment a customer hits return to the item being received and sorted in your warehouse. Because recommerce relies on these items coming back to you in good condition, your reverse logistics must be seamless. 

How do I manage returns for pre-loved items?  

In a recommerce model, you might manage two different types of returns. The trade-in is when your original customer sends a used item back to you for credit. The resale return is when a new customer buys that pre-loved item but wants to return it because of fit or change of mind.  

How do I avoid recommerce sales cannibalising new sales?  

Frame your recommerce program as a curated secondary channel rather than a clearance sale. Use language like certified pre-owned to signal quality. This positions the offer as a distinct choice for a different customer segment.