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Recommerce industry has grown strongly over the last few years mainly driven by rising inflation as well as consumer and market trends such as sustainable shopping and supply shortages driven by the pandemic.

Online platforms have made recommerce more accessible with 61% of shoppers choosing to buy second-hand products through online recommerce marketplaces and only 39% buying in-store. These marketplaces have captured a significant share of the US consumer spending over the last few years as Americans spend nearly as much time shopping recommerce online as they do browsing social media as per a recent survey. ¹

With US inflation reaching record high levels in 2022, recommerce is expected to boom over the coming years with 93% of Americans stating inflation impacted their decision to shop recommerce over the last 12 months ². The Emergence of new recommerce platforms that are easy to use as well as innovative C2C models are among other major factors driving recommerce spending.

Second-hand is becoming a global phenomenon, expected to reach $82bn growing 127% by 2026

The overall second-hand market in the US saw a record growth of 32% in 2021 reaching $35bn. The resale market was the fastest-growing sub-sector with 58% growth during the same year, recording its highest growth in the last 5 years. The sub-segment is expected to further grow by nearly 4x by 2026. The market is strongly driven by technology and the rise of online marketplaces.

Key Themes

  • Brands and Retailers increasingly embracing resale: Resale has become increasingly popular among GenZ and Millenials, with 46% considering the resale value of an apparel item before purchasing any apparel. As such, Brands are increasing their resale shops and retailers are adopting various strategies such as customization and personalization to cater to the rising demand and enhance customer loyalty
  • Rising inflation: As per a survey conducted in May 2022, 58% of Americans plan to buy and sell second-hand goods over the next 12 months, as rising inflation squeezes consumer spending, especially on apparel
  • The home goods and furniture are the fastest growing recommerce category: Home goods and furniture category is growing at a CAGR of 9% since 2020 and is expected to reach $23.6bn in value by 2025
  • Online recommerce gaining traction: 60% of American shoppers choose to buy second hand goods via recommerce marketplaces

By The Numbers: The Booming Recommerce Industry

  • The industry attracted over $1.8bn in funding for the year ending Q3, 2022, with Grover Group and Back Market raising over $590mn and $511mn respectively
  • M&A activity also picked up considerably since Q4 2021, with Vestiaire Collective’s acquisition of Tradesy for $120mn, Flipkart’s acquisition of Yaantra for $40mn, and Vinted’s acquisition of Rebelle for $31mn among the major deals

2022 and Beyond

Second-hand market is expected to capture more share of the closet than all the other growth channels combined such as rental and fast fashion which are expected to remain relatively flat over the next 10 years. With recommerce gaining popularity, nearly 50% of GenZ and Millenials are spending a huge proportion of their apparel budget on second-hand as compared to 5 years ago. Resale is expected to be the fastest growing sub-segment, projected to grow by 16x faster than the broader retail clothing segment by 2026. ComCap believes future consumers will rent, own, and buy with the intention to resell. This is consistent with what we observe across the market, particularly in the specialty item resale market.


Source: OfferUp Recommerce Report 2022 1, 2


ComCap has also published its Automotive Retail Software Market Activity Report that covers key themes, market landscape, recent transactions, and a list of the most active investors within the sector. Please find our Auto Report here.

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About ComCap

ComCap is a premier investment bank focused on M&A and capital raising services in the digital commerce, marketing, consumer, and payments ecosystems. Founded in 2012 in San Francisco, California, ComCap works with clients globally to ensure the achievement of their strategic priorities. For more information, please visit