Climate change is arguably the greatest challenge of our time, and 2024 was the first year that our world's average temperature exceeded 1.5°C warmer than the pre-industrial average. Not only since we passed this milestone has the topic of sustainability been of importance to companies and customers alike.
When looking at the issue from the perspective of e-commerce, how can SAP Commerce Cloud help with battling climate change?
Instead of only focusing on selling new materials, companies can become more sustainable by bringing products already owned before, back into circulation. This is where the power of SAP Commerce Cloud integrated with SAP Recommerce comes in.
The SAP Recommerce solution allows you to take back, manage, and resell pre-owned inventory. The solution helps you accelerate the shift from a linear to a circular business model, extending customer lifetime value and promoting more sustainable consumption.
SAP Recommerce
Let’s explore how SAP Recommerce can enhance the experience for environmentally conscious customers, especially when combined with the exceptional capabilities of SAP Commerce Cloud.
Business Benefits of SAP Recommerce
Initially, you may think that offering second-hand items instead of selling new products could be detrimental to a company's bottom line. But there are many positive aspects to keep in mind.
New revenue streams: Brands can create new sustainable revenue streams and leverage resale programs as an opportunity for up-and cross-selling, capturing the value from pre-owned products.
Demand generation: Acquiring new customers at a lower marginal cost, extends the Customer Lifetime Value with higher purchase frequency and loyalty. Achieving customer acquisition and retention of existing customers.
Sustainability: Alignment with sustainability efforts, contribution to a more environmentally conscious brand image, and showcasing a commitment to reduce waste and promoting circular practices, while having a positive and measurable sustainability impact.
Monetize returns: Capture value from "write-off" products (returns, Grade B production, samples) that would otherwise be considered waste. Using cleaning & repair services for quality products adds additional value to the recommerce process.
Meet regulatory obligations: Regulatory bodies and countries around the world have already or are soon to introduce new and stricter regulations around sustainability and climate change. Switching to a circular offering can help companies meet carbon reduction and sustainability targets.
Proven Value of Resale Opportunities for Customers
What Do Customers Get Out of SAP Recommerce?
Simple and smooth user experience: The trade-in service for customers is simple, quick, and safe for specific branded goods. Assisted product Identification helps with selection, resulting in a smooth and seamless shopping experience, especially when combined with the experiences offered by SAP Commerce Cloud.
Quality verification and control: The authenticity of premium and luxury products for customers through rigorous quality control measures is ensured, giving confidence in the condition and genuineness of the products.
Instant gratification: Customers are empowered to recognize the value of their purchased items and are offered immediate incentives for legitimate traded-in selected items. Incentives (vouchers and credit in the store) can be redeemed to buy new or pre-owned items. This results in a seamless and simplified user experience for the customers while engaging on the SAP Commerce Cloud storefront.
Delivering the brand's promise: Customers are assured that the experience of shopping pre-owned products will match their expectations of the brand. Shopping is to deliver delight, not an unpleasant surprise when opening a box from an unknown seller.
Summary
SAP Recommerce enables companies to establish a circular channel for trading used products, allowing new customers to purchase these pre-owned items. It allows companies to:
- Opening new revenue streams: to acquire new customers targeting eco-conscious customers.
- Building new touchpoints: invite shoppers to participate in resale and product activations.
- Driving more frequency between shoppers and brand: trade in program incentives bring your shoppers back regularly.
- Creating a circular loop: generate more value with cross-shopping and trade in program combined.
- Building brand equity: communicate greener choice options and sustainability impact.
- Reducing waste: resale pre-owned products, limit manufacturing and packaging footprint, expand lifespan.
- Legal compliance: achieve sustainability goals set out in different legal requirements.