Why Secondhand Stores Are a Goldmine for Technology Solutions Providers

Don’t overlook the opportunity to help businesses in this retail segment digitally transform their operations.

The European secondhand market is growing at an astonishing rate of 22 percent annually, on track to reach about 80 billion Euros by 2028. Also known as consumer-to-consumer (C2C) commerce, secondhand stores sell donated items, from clothing and furniture to housewares, books, and more. It also includes merchants who sell items on consignment, retaining a portion of the revenues for the service. Additionally, traditional brick-and-mortar secondhand stores are certainly benefiting from the dramatic growth of the market, e-commerce is emerging as the primary driver.

Although people from all demographics may shop in secondhand stores, this market is especially appealing to young people, with 81 percent of 18 to 24-year-olds participating by buying, selling, or doing both. Most younger consumers who donate cite their concerns about sustainability as a prime motivator. Being financially responsible by buying excellent goods for a lower price is simply an added benefit.

Technology that Helps Secondhand Stores Deliver

Technology solution providers (TSPs) may overlook secondhand stores as prospective clients. However, this can be a lucrative growth market. After all, these businesses will benefit from technology solutions just as other merchants do. Educate secondhand stores in your market on the value of deploying these solutions:

• Point of Sale (POS) Systems

Secondhand stores need to run transactions and track sales. Some businesses may prefer mobile POS systems to stationary terminals to assist customers anywhere in the store. Additionally, mobile POS systems allow busy managers to complete back-office tasks, like changing schedules, purchasing, or running reports, wherever they’re working.

• Inventory Management

Secondhand stores have unique inventory requirements, including tracking donations and consignment items. A secondhand store’s management system must allow the store to track sales of consignment items and transparently report consignors’ revenues.

• Loyalty Rewards

The best loyalty programs tailor rewards to customers and give them strong incentives to make future purchases. Secondhand stores can also reward their donors by continuing to bring inventory to the store and becoming customers themselves. Buyers and donors working in concert will positively impact revenues.

• E-commerce Platform

The European e-commerce market is well over USD 637 billion. Secondhand stores can capture their market share by building a robust online presence. An e-commerce platform integrated with the store’s POS system allows the shop to evolve into an omnichannel business. The best e-commerce systems for secondhand stores will include customer relationship management features that enable the store to send targeted marketing messages. Your customers will also benefit from real-time inventory updates so online shoppers have accurate availability information, and store staff can reserve items sold online for in-store pickup or shipping.

• Data Analytics

You can also show your clients how data from their POS systems and the market can reveal what’s selling, which items to discount to move faster, and how to price items. Individualised data profiles can tell retailers which items customers prefer so they can send marketing messages to customers most likely to convert. Also, educate your customers on the value of AI-powered tools to analyse data for hyper-personalised service, forecasting demand, and optimising processes.

Help Secondhand Stores Digitally Transform

As demand for secondhand items grows, competition among retailers in this space will intensify. Secondhand stores need a way to stay competitive and deliver the same tailored experiences their customers are used to getting from traditional retailers. The right technology can give these businesses an edge and help them stay competitive. However, these businesses need your guidance and expertise to implement solutions that meet their needs and provide the most value.

Evaluate the opportunity to grow your business by helping businesses and consumers give used items new purpose via the secondhand market.