Mapping the Recommerce Market: Segments, Sizes & Key Players

‍Karri: Hello and welcome to the Recommerce Podcast, the podcast where we talk all things recommerce and circular businesses. This time we’re looking into the market map of recommerce, and we’re going to go through the main segments, the sizes of these segments, and the players who are participating in these markets. I’m joined by Tuomo Laine, the CEO and co-founder of TWICE Commerce.

Tuomo: Thank you. Great! I put on my Patagonia shirt as we’re talking about market sizes and all of that, so I’m more believable now.

Karri: Very nice, very nice. Let’s start going over the different market segments. So first we have B2C and B2B, where the seller is a business. Then we have consumer to consumer, usually in marketplaces with a company facilitating transactions. And then we have peer-to-peer—so B2B—where individuals do transactions by themselves. But yeah, let’s start with the business-to-business and business-to-consumer segment.

Tuomo: Sure. Like you said, there are three main ways of segmenting the recommerce market. B2C and B2B, where businesses offer recommerce items; C2C, where consumers sell to each other via a marketplace; and peer-to-peer, where it’s more of a direct exchange, like through classifieds or social platforms.

Karri: And in B2C and B2B, we can break it down further?

Tuomo: Yes. We typically split it into corporate recommerce and aggregator brands. Corporate recommerce refers to brands or retailers selling their own returns or refurbished inventory. Aggregators are independent companies that source recommerce inventory from the market—like Swapbee, which buys used iPhones and resells them.

Karri: So the key difference is where they get their supply from?

Tuomo: Exactly. Supply is everything in recommerce. Corporate recommerce sources from returns or their own production. Aggregators source from the market—buybacks, trade-ins, etc.

Karri: Are some corporates designing goods specifically for recommerce now?

Tuomo: Yes, especially in industries like skiing. Brands like Atomic and Fischer design rental-ready skis. Others, like IKEA, are starting to adapt—facilitating resale, even enabling peer-to-peer transactions.

Karri: So for corporates, it’s still a side stream; for aggregators, it’s the core?

Tuomo: Exactly. Aggregators see a massive opportunity—$600B worth of unused goods in U.S. households alone. They exist to unlock that value.

Karri: How big is the B2C and B2B recommerce market overall?

Tuomo: Corporate recommerce is estimated at $20–40B in the U.S. and Europe. Aggregators are around $20–35B. Combined, it’s a small percentage of overall commerce but growing fast—10–20% annually, driven by regulation, consumer demand, and price sensitivity.

Karri: And how are these goods typically sold?

Tuomo: Usually via the brand’s own channels—e.g. online stores built with TWICE or Shopify, or physical stores. Established brands already have trust, which makes it easier to convince consumers to participate.

Karri: So new brands like Swapbee need to build that trust from scratch.

Tuomo: Exactly. New entrants often start by selling on marketplaces to get visibility—even at low margins. Over time, they aim to drive traffic to their own brand and increase margin.

Karri: Speaking of marketplaces, let’s talk about the C2C segment.

Tuomo: Right. C2C marketplaces get supply from individuals and businesses. They facilitate sales and charge a take rate (10–30%). There are broad platforms like eBay and Vinted, and local ones like Blocket or Leo.

Karri: And marketplaces handle shipping, trust, authentication, and more?

Tuomo: Yes. Some even store inventory themselves. Their value lies in building buyer-seller trust and convenience.

Karri: How big is the marketplace segment?

Tuomo: Estimates range from $150–220B in gross merchandise value. After adjusting for take rates, that’s $20–60B in actual marketplace revenue—comparable to corporate recommerce.

Karri: So they face similar challenges in branding and trust-building?

Tuomo: Definitely. Marketplaces face a chicken-and-egg problem: supply needs demand, demand needs supply. Some go niche (e.g. fashion, electronics), others go local.

Karri: Are cars and homes included in these estimates?

Tuomo: No, we excluded them. They’re already mature recommerce markets. Generally, the higher the asset value, the more mature the recommerce ecosystem around it.

Karri: Let’s talk about peer-to-peer now.

Tuomo: Peer-to-peer is the oldest form of recommerce. We split it into offline (garage sales, thrift stores) and social (Facebook groups, classifieds). Offline is very local and trust is built socially. Social adds a platform layer but still lacks transaction facilitation.

Karri: Are platforms like Facebook Marketplace moving toward more facilitation?

Tuomo: Yes. In the Nordics, Blocket has added shipping and payment options. In the U.S., Nextdoor is experimenting with local recommerce. These platforms may evolve to add more trust and logistics features.

Karri: And AI seems to be helping with item discovery and grading?

Tuomo: Absolutely. AI can scan a photo and instantly grade, value, and authenticate an item. This helps index the $600B worth of unused household goods and make it more accessible.

Karri: So across all segments, trust and item-level identification are key.

Tuomo: Yes, and the same logic applies to those collectible TV shows—people need expertise to validate an item. AI can now be that expert.

Karri: Let’s touch on other business models, like rentals.

Tuomo: Rentals are tougher in peer-to-peer and C2C. Margins are small, and logistics are complex. But in B2B, they’re well established—like Home Depot tools or ski rentals. And often, those rental fleets are later sold as refurbished goods.

Karri: So rentals flow back into the resale market?

Tuomo: Exactly. Some companies bulk-sell their fleets at season’s end. Aggregators buy them, refurbish, and resell.

Karri: Where do you see all of these segments heading in the near future?

Tuomo: AI is going to unlock more supply—by simplifying item intake. Peer-to-peer and C2C will grow because of that. Corporate recommerce will expand too, thanks to take-back regulation and better processing of returns. We’ll see more shop-in-shop secondhand areas, dedicated recommerce warehouses, and better tracking of inventory cycles.

Karri: What about aggregator brands?

Tuomo: I think more new businesses will start by tapping into local recommerce supply rather than importing goods. This could lead to more sustainability-focused, circular-first startups.

Karri: Thank you, Tuomo. That was a deep dive into a very complex and exciting market.

Tuomo: Thank you so much.