Why it matters

Unlocking the potential

For generations, many communities have relied on Recommerce as a lifeline to basic goods and services. With the every-penny-counts effect of the emerging cost of living crisis and evident impacts of climate change, most people are increasingly looking to adapt their behaviours to save money and consume more sustainably. Individuals and businesses are increasingly considering transactions to get better value for money and are motivated to participate in recommercial activities, especially resale, rental and repair, to meet their evolving needs. As sustainability, as well as cost, continues to become the expectation rather than the exception, individuals, communities and businesses need to rethink, innovate and scale opportunities to create an inclusive and sustainable future that benefits all.

Who is involved?

Visa GlobeScan research, 2022¹

SMBs are offering Recommerce, and future appetite is high

50%

of businesses currently provide Recommerce

66%

of businesses expect % of turnover from Recommerce to increase in next 3 years - with Recommerce already accounting for half or more of turnover for a fifth of

Consumers are increasingly taking part, particularly younger generations

There is a need to address access and inclusion; with strong age trend leaving older groups and 55+ behind and those who need it most from lower income groups benefiting less from Recommerce

50% Europeans are taking part in at least one Recommerce activity twice per year

Top activities are Refill (64%), Redistribute (51%) and Resale (45%)

18‒34s are the main users of each Recommerce activity, except for Refill which is highly used among 35‒54s

Consumers on low incomes use Recommerce 20% less and are 21% less likely to engage in Recommerce activities in the future vs high income users

Knowledge of Recommerce is low

Despite many already being active in the space

Fewer than 1 in 5 consumers say they have knowledge of Recommerce

Only a small minority of SMB’s feel confident they know a lot about Recommerce areas e.g. 17% know about Resale vs. only 8% know about Redistribution

Recommerce is happening online

60%

of consumer engagement with Recommerce activity happens online

Where is Recommerce growing?

Visa GlobeScan research, 2022¹

Frequency of use: consumers

Knowledge of Recommerce is a Europe-wide shift. Refill, Redistribute, and Resale are most prevalent across markets – with an average of 64%, 52%, and 45% taking part at least twice per year respectively

Repair is more popular in Italy (38%), Poland (43%) and the UK (38%)

Return is more popular in Greece (45%) and Sweden (46% twice per year)

Rental over indexes in Poland (28% rent twice per year)

Redistribute is a frequent behaviour in France (56% do twice per year)

Future uptake: consumers

30%

Consumers in Greece more willing to try new Recommerce activities overall (30% average willingness)

16%

Greater willingness to try Rental in Greece (16%) and Poland (12%)

Frequency of use: SMBs

Recommerce accounts for half or more of turnover for 27% of SMBs in Sweden, and 23% of SMBs in France and Germany

57% Recommerce providers in Greece have an in-store/physical presence

Future uptake: SMBs

Current and future provision is highest in France

74%

SMBs in Greece expect % of turnover from Recommerce to increase in the next three years

71%

SMBs in Italy expect % of turnover from Recommerce to increase in the next three years

70%

SMBs in UK expect % of turnover from Recommerce to increase in the next three years

What is driving or limiting Recommerce?

Visa GlobeScan research, 2022¹

Motivators are financial and environmental

For consumers, financial motivators – saving or making money – are especially important for Resale purchasers (65%) and sellers (42%), as well as Rental users (47%) and Repair users (44%)

Environmental motivations are especially strong for Refill (52%) and Return (52%)

47% people want to change their lifestyle a great deal to be more environmentally friendly, but only 23% say they have made major changes in the past year

People and businesses are also driven by social impact

When choosing / buying a product 48% say that helping their community by buying locally, is important to them

36%

SMBs identify social impact as a motivator for expanding / starting Recommerce activities

26%

identify customer access to more affordable products/services as a motivator

24%

identify new jobs/new talent as a motivator

24%

identify improving community/local impact as a motivator

Businesses want to see the growth opportunity

Increasing sales/revenue is main motivator (31% providers, 34% non-providers)

Followed by reducing business costs/overheads (29%, 30%)

And finally, attracting new types of customer (28%, 30%)

Sources:
1 Visa GlobeScan research, 2022. The survey was commissioned by Visa and conducted between April and May 2022 by GlobeScan, an independent insights and strategy consultancy. The study surveyed 7,000 consumers and 1,750 micro, small and medium-sized businesses (SMBs), using established online research panels across 7 countries: France, Germany, Greece, Italy, Poland, Sweden, UK.

Learn more about our approach

At Visa, we want more people to join the regenerative economy and share its benefits, as part of our mission to uplift everyone, everywhere.

Learn more about Recommerce