Resale Tech, or Re-commerce, has been growing rapidly in recent years, with the global market expected to reach $62 billion by 2025. One of the key drivers of this growth is the emergence of Resale-as-a-Service (RaaS) platforms, which use artificial intelligence (AI) to automate many of the processes involved in reselling goods.
Here are some facts to help you understand more about RaaS and AI in the resale tech industry:
“Resale-as-a-Service platforms are automating the resale process, making it faster, more efficient, and more profitable for retailers and consumers alike.” – ThredUp CEO James Reinhart. According to a report by the Boston Consulting Group, “AI is set to revolutionize the resale industry, making it possible to process huge amounts of data, automate pricing, and even predict demand.” In 2020, online resale platform Poshmark became the first resale company to go public, with an initial valuation of $3 billion. According to ThredUp’s 2020 Resale Report, the resale market is growing 11 times faster than traditional retail, with one in three women expected to buy secondhand clothing by 2023. The AI-powered RaaS platform, Optoro, has helped retailers like Best Buy and Target reduce waste and increase profits by automating the returns process and reselling returned items on its own platform. The global market for AI in retail is expected to reach $19.9 billion by 2027, with the resale industry being a major contributor to this growth. In addition to improving efficiency and profitability, RaaS platforms are also helping to reduce waste and promote sustainability by keeping items in circulation for longer. AI-powered pricing algorithms are helping to ensure that resale prices are fair and reflective of market demand, leading to more consistent pricing across different platforms. According to a report by the Ellen MacArthur Foundation, if the fashion industry continues on its current path, it could account for 25% of the world’s carbon budget by 2050. Resale and rental models like RaaS have the potential to reduce this impact by extending the life of clothing and reducing the need for new production.
The rise of RaaS and AI in the resale industry is also leading to new opportunities for entrepreneurs and small business owners to enter the market, as they can leverage these platforms to streamline their operations and reach new customers.
Overall, RaaS and AI are revolutionizing the resale industry, making it more efficient, profitable, and sustainable. As these technologies continue to evolve, we can expect to see even more growth and innovation in this space in the years to come.