News • 05.08.2021

Secondhand trading takes off in China

Alibaba’s Idle Fish App makes recycling easier

Woman puts books in a box
Source: Alizila

More and more customers in China embrace secondhand trading, also known as re-commerce, to raise extra cash via online platforms such as Idle Fish.

The trend has been turbo-charged by apps that make selling pre-owned items simpler, the need to optimize space while living at home during the coronavirus pandemic, and as people adopt a more sustainable way of life.

Statistics from Alibaba’s midyear shopping festival, 6.18, showed that the trend is gaining momentum across all demographics in China. During the month of the 6.18 shopping bonanza, the number of product postings in categories such as used electronic and maternity products nearly tripled year-on-year.

“At least 40% of the products around us stay idle every day,” said Tang Song, general manager of Idle Fish.

Out with the old & in with the new

The coronavirus pandemic has accelerated the growth of the global resale market as some people tightened their purse strings, according to thrift store ThredUp and research firm GlobalData.

Hangzhou-headquartered Idle Fish’s registered users surpassed 30 million by the end of 2020. Additionally, more than 200 billion items were sold on the platform last year.

"[The] recent onslaught of the pandemic has inspired many people, especially younger generations with limited spending power, to rethink buying secondhand. As they search for more cost-effective ways to upgrade their lifestyles, many have turned to Idle Fish for answers," said Idle Fish’s Tong. 

China's re-commerce market will generate over RMB500 billion (US$77 billion) in gross merchandise volume (GMV) on the app by the end of this year, Idle Fish estimated. Up from RMB200 billion last year.

"China's online re-commerce market will continue to boom as Chinese shoppers become wealthier and more sophisticated, more and more people are turning to secondhand shopping as a sustainable way of life," said Mark Tanner, managing director of China Skinny, a Shanghai-based marketing and research agency.

Circular economy

Online apps have made reselling simpler. In 2014, Alibaba's leading e-commerce marketplace Taobao took on the idea of re-commerce and launched Idle Fish to nurture a circular e-commerce economy in China.

The two apps are interlinked so shoppers can browse through their purchase history on Taobao and select any item for reselling with just one click on Idle Fish. The process also provides a recommended price for pre-owned goods across different categories, typically at 50% of the product's original cost, making the whole process transparent.

Customers’ biggest concerns about buying secondhand were around the quality of items and that products wouldn’t turn out exactly the way they were portrayed online.

To address these issues, the platform launched a dedicated platform-certified channel featuring high-value products such as electronics and fashion sneakers that have been inspected and authenticated by third-party professionals.

Vice versa, sellers new to the scene can choose free mail-in or pick-up services to have their items inspected and sold by the platform. After major sales like 6.18, the app saw demand surge for recycling and concurrently rolled out a promotion to help users resell their unwanted products. Remuneration is almost instant and above market value in some of these cases.

Idle Fish taps into Alibaba's credit-scoring system, Sesame Credit, to add an additional layer of trust to the process. Users can choose to disclose their credit score and receive a digital badge to validate their credibility. Secondhand shoppers can filter their searches by sellers’ credit rankings, to further build trust in the process.

More than transactions

Whether saving or earning, money is a major incentive behind the rise of re-commerce. But the social interactions and online communities within Idle Fish are giving users reasons to stay online.

The app also includes interactive features such as livestreaming, influencer-driven communities and forums, online auctions starting as low as RMB1, and dedicated channels for finding rare vintage handbags and handmade couture.

Additionally, Idle Fish is also known as a "super app" because it connects people by location: users can find same-city services, including part-time jobs, door-to-door repairs, recycling stations and even leased properties.

Source: Alizila

related articles:

popular articles:

Thumbnail-Photo: 4 ways to make your sales team more productive in 2022...
08.02.2022   #marketing #sales promotion

4 ways to make your sales team more productive in 2022

Tech evaluation and employee feedback among them

A 2018 report stated that more than 50% of salespeople fail to meet their quota. And this figure increased in 2020, as companies had to rethink their strategies due to the COVID-19 pandemic. Additionally, businesses these days have to keep up with ...

Thumbnail-Photo: World Class Retail Store Transformation 2022 conference...
11.01.2022   #retail #digitization

World Class Retail Store Transformation 2022 conference

First-mover retail- and customer-focused companies across Europe to come together in Frankfurt on 2022, August 25-26

Leading retail- and customer-focused companies in Europe will gather at this year’s World Class Retail Store Transformation 2022 conference, to be held on 2022, August 25-26 in Frankfurt, Germany. The 2022 edition of the World Class Business ...

Thumbnail-Photo: Analysing and managing global HR data for employee engagement and growth...
08.02.2022   #personnel management #software applications

Analysing and managing global HR data for employee engagement and growth

Sephora revolutionises global HR strategy with Qlik

Qlik® announced that Sephora is using Qlik Sense® to transform its Human Resources (HR) management system. The strong international growth of the brand over the last decade has made it necessary for Sephora to combine its global HR ...

Thumbnail-Photo: Mintel announces global consumer trends for 2022...
15.01.2022   #retail #trend research

Mintel announces global consumer trends for 2022

Mintel has today announced three trends set to impact global consumer markets in 2022

From technology that predicts the success of potential romances to brands tackling COVID-19 ‘survivor’s guilt’ and eco-anxiety.This year’s trends include:In control: In times of uncertainty, consumers crave a sense of control ...

Thumbnail-Photo: Key strategic priorities to businesses this year...
10.02.2022   #retail #sustainability

Key strategic priorities to businesses this year

IGD unveils five global retail trends for 2022

Global insight provider IGD has published its predictions for the global retail trends that are set to shape the international food and consumer goods industry in 2022. The new report outlines five key trends to help retailers and suppliers navigate ...

Thumbnail-Photo: Think tank releases digitization action plans for business resilience...
10.12.2021   #e-commerce #coronavirus

Think tank releases digitization action plans for business resilience

Series of direct-to-consumer (D2C) reports answers fundamental questions in massive ecommerce shift

Policy2050.com, a think tank for tech policy and business strategy, has released a series of reports about new developments in direct-to-consumer channels: “D2C and Other Digital Adaptations During COVID-19,” “D2C in ...

Thumbnail-Photo: 70 % of US consumers continue to shop online for groceries amid the...
25.02.2022   #online trading #coronavirus

70 % of US consumers continue to shop online for groceries amid the pandemic

Pandemic-related shopping habits remain firmly in place

Acosta has released its latest research report, The Lingering Impact of COVID-19 on U.S. Shoppers. The report examines U.S. shoppers’ behavior nearly two years into the pandemic. According to Acosta’s research, most of today’s ...

Thumbnail-Photo: Digital commerce market expected to reach $17.53 trillion by 2030...
21.12.2021   #e-commerce #payment systems

Digital commerce market expected to reach $17.53 trillion by 2030

Growing penetration of the Internet drives growth of digital commerce market

According to the report published by Allied Market Research, the global digital commerce market was estimated at $4.21 trillion in 2020 and is anticipated to hit $17.53 trillion by 2030, registering a CAGR of 15.1 percent from 2021 to ...

Thumbnail-Photo: White Label World Expo
26.01.2022   #online trading #e-commerce

White Label World Expo

2nd & 3rd March 2022 - ExCeL London

White Label World Expo UK is right around the corner! Join us at the UK’s largest event for professional online sellers to meet cutting edge white label goods suppliers!The show is returning to the ExCeL Centre in London on 2nd & 3rd March ...

Thumbnail-Photo: New shoppable video feature to tap into growing demand for immersive...
28.02.2022   #online trading #e-commerce

New shoppable video feature to tap into growing demand for immersive content

Wish Clips is the first of many new features that will be rolled out this year

ContextLogic Inc., known as Wish, one of the world’s largest mobile e-commerce platforms, today announced the roll out of Wish Clips - a new shoppable video feature that is designed to greatly enhance the customer ...

Supplier

iXtenso - retail trends
iXtenso - retail trends
Celsiusstraße 43
53125 Bonn
Citizen Systems Europe GmbH
Citizen Systems Europe GmbH
Otto-Hirsch-Brücken 17
70329 Stuttgart
Canto GmbH
Canto GmbH
Lietzenburger Str. 46
10789 Berlin