Recommerce, a pioneer in the refurbished electronics market, recently marked its 15th anniversary with plans to expand beyond smartphones. Headquartered in Gentilly, near Paris, the company has grown from a white-label provider for telecom operators to a major player in the circular economy. Today, Recommerce employs 200 people across 20 countries and has redistributed over 5 million smartphones, emphasizing its mission to combat resource waste and make technology accessible to all.
Challenges in second-hand smartphone adoption
Despite its apparent success, Recommerce faces challenges unique to the refurbished market. According to the company, millions of unused phones remain tucked away in drawers. A 2023 report by Ecosystem estimates 46 million such devices in France alone. To address this, Recommerce partnered with retail giants Boulanger and Électro Dépôt (both belong to the same company, United.B, as Recommerce), rolling out "Rebox" collection points in thousands of stores. This initiative aims to raise public awareness and streamline phone collection, though industry consolidation and low profit margins present ongoing hurdles. However, most of these devices are essentially worthless, as they are mainly older models with no resale value. Recommerce often incurs significant costs to recycle these devices since reselling them is rarely an option. While this effort is excellent for the environment and great PR, it presents considerable challenges from a business perspective.
Competition and criticism
The rise of Back Market, a leading platform connecting buyers and sellers of refurbished electronics, has transformed public perception of the second-hand market. However, Recommerce’s co-founder, Benoît Varin, critiques the unregulated competition fostered by such platforms, which sometimes allow vendors to bypass taxes and quality assurances. Efforts like the 2020 circular economy law and Back Market’s own reforms indicate progress, but Varin calls for clearer standards and stronger market regulation.
Back Market's fight with Cdiscount
Market place Back Market on the other hand has urged French e-commerce platform Cdiscount to enforce stricter VAT compliance on third-party sellers, alleging some avoid VAT through location misrepresentation, leading to unfair competition. The dispute highlights the broader issue of tax evasion in the refurbished electronics market, distorting prices and disadvantaging compliant vendors. Cdiscount defends its compliance while advocating regulatory reform to require marketplaces to collect VAT from all vendors, aiming for a fairer marketplace. So lots of developments in the French market.
Diversification: the future of recommerce
Recommerce is diversifying to stay ahead. With its CircularX platform, launched in 2021, it provides logistics solutions for businesses entering the second-hand market. Additionally, the company has ventured into categories like bicycles and sporting goods, leveraging synergies with parent company United.B’s other brands such as Decathlon and Leroy Merlin. “Our goal is to help every retailer become a re-commerce leader,” says Varin.
Data-driven operations and global reach
Half of Recommerce’s workforce comprises engineers managing extensive data analytics, from pricing strategies to inventory flows. This focus on data enables the company to optimize margins and expand internationally, with 50% of its revenue now coming from outside France. As the refurbished market matures, Recommerce positions itself as a linchpin connecting all facets of this growing industry.
A model for the circular economy
While smartphones remain central to its business, Recommerce’s ambitions align with broader sustainability goals. The company advocates for standardized certifications like the proposed RecQ label, which Varin compares to organic labels in food. With a mix of innovation, advocacy, and diversification, Recommerce aims to lead the shift toward a more sustainable economy.
Via: lesmumeriques.com
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