More and more brands are offering second-hand items by launching their marketplace to achieve this diversification.
Much more than a simple trend, the second-hand market is attracting more and more consumers.
Either it’s about Second Show on Showroomprivé, from 2nd Life on Boulanger, or the specialized marketplace Vintedsecond-hand items are very successful on online sales sites…
Par Pierre Lion, Chief Growth Officer, Mangopay
The second-hand market revolution
According to a study by the McKinsey group carried out on C2C platforms (sales platforms linking individuals) offering second-hand products, fashion items were the most popular with French consumers.
Mckinsey estimates that in 2021, this category of goods represented 6 billion euros, double its value in 2020.
For consumers, saving money, producing less waste and having access to more products are the main reasons for buying second-hand.
They have become accustomed to benefiting from a wide choice of items at attractive prices, on these marketplaces which play a decisive role in highlighting second-hand products.
For e-commerce sites, the second-hand market represents a new source of profitable income. Most goods sold used are less expensive than new products.
Consumers are thus likely to buy goods that they would not have previously considered or could afford to acquire.
58% of consumers say second-hand selling helped them during inflation.
In addition, 25% say they would consider buying more second-hand goods if the prices of clothes, shoes and accessories were to rise, for example.
The second hand is also a question of inclusiveness: by expanding their online stores to second-hand products, e-tailers can target a wider audience, with the argument of affordability.
Payment service providers, privileged partners of second-hand marketplaces
Adding second-hand items to an e-commerce site expands the offer, attracts potential new customers and generates a new source of revenue.
However, it also means managing a whole new parallel payment flow. This is why there are different types of payment service providers (PSPs) depending on the needs of e-commerce sites.
On a marketplace, payments go from buyers to one or more merchants or semi-professionals or even individuals with commissions charged, unlike a traditional online site.
Furthermore, as part of their responsibility for processing third-party payments, marketplaces are subject to specific regulatory requirements.
On the second-hand market, these requirements are crucial with regard to the question of the authenticity or reliability of the products put online.
Counterfeits or poorly refurbished items can cause irreparable damage to a platform’s reputation.
Checks on customer information are also important and are done via the “Know Your Customer” procedure.
As a long and complex process, e-merchants can delegate this task to a PSP who will be able to automate, simplify and secure the onboarding phase.
Technology allows these players to quickly become international platforms that now make the main drivers of the global second-hand phenomenon.
This is a basic trend which affects all generations and which is intended to last over time.
Already having a foothold in e-commerce, brands need support to create trusted resale platforms for consumers.
To do this, calling on service providers with the necessary expertise to support them in the crucial management of payment flows represents a major and crucial challenge for them…
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