From Afterthought to Advantage: Why the Recommerce Revolution is the New Strategic Baseline
For decades, the global definition of growth involved producing, selling, and consuming more. As resources tighten and markets mature, the logic of progress undergoes a fundamental shift. Business success now involves the rediscovery of value in existing products.
This is the central theme of our latest whitepaper, “The Recommerce Playbook: From Returns to Revenue.” Written in partnership with Koorvi, developed this collaborative deep dive into the strategic necessity of circular business models.
The $335 Billion Opportunity
Recommerce is the business of buying and selling pre-owned products, whether refurbished, repaired, or resold as-is.
Recommerce involves the business of buying and selling pre-owned, refurbished, or repaired products. It represents a central business strategy. In 2024, the global refurbished retail market reached USD 137 billion and projections show a value of USD 335 billion by 2033.
The growth includes consumer goods and the industrial machinery remanufacturing market. This sector is expected to grow by nearly USD 900 billion by 2029 with an annual growth rate of 25.5 percent. The goal for smartphones and heavy equipment remains the same: extending product life and extracting maximum value from circulating materials.
Source: Imarc Group
The Logic of Margin: Why Refurbishment Beats Recycling
While recycling is a common sustainability goal, it is often an economic last resort. Recycling typically recovers less than 10% of a product’s value once it is reduced to raw materials.
Refurbishment, however, preserves the structure and manufacturing effort already invested. A refurbished product can retain between 65% and 80% of its original margin potential because its core components remain intact. By turning returns and B-stock into sellable inventory, brands transform what used to be a “cost driver” into a reliable source of growth.
The Regulatory Push: Compliance as a Baseline
Beyond the economic pull, a significant regulatory push is making recommerce a mandatory capability.
- ESPR (Ecodesign for Sustainable Products Regulation): Durability and repairability are becoming the new baseline for products sold in the EU.
- Right to Repair Directive: This mandate makes it easier and cheaper to fix products by ensuring access to spare parts and repair information.
- CSRD & ESRS E5: Companies must now explicitly report how much they reuse and keep in circulation, making refurbishment a measurable, traceable impact metric.
Learning from the Frontrunners
The playbook highlights how global leaders are already reclaiming their share of the recommerce market:
- Deutsche Telekom is integrating refurbishment into its customer lifecycle, certified through partner networks to keep high-value hardware in circulation.
- Jungheinrich has industrialized the remanufacturing of industrial trucks, achieving reuse rates of up to 94%.+1
- Tchibo, in collaboration with koorvi, has launched a brand-run buy-back program for coffee machines, retaining control over customer relationships and product quality
- Canon operates one of Europe’s most advanced industrial-scale remanufacturing programs, achieving up to 60% lower CO2 emissions compared to new production.
Are You Ready for Recommerce?
The transition to a circular economy is a complex journey, but it is one that offers immense strategic rewards. By starting with the right products and aligning with clear business goals, brands can move from understanding recommerce to actively shaping it on their own terms.
Michael Leitl
Circular Strategies
Business Model Development
AI Concepting
