Introduction
What’s the Story?
The Coresight Research team will attend and participate in this year’s Shoptalk conference, which will be held on March 27–30, 2022, in Las Vegas, US. Shoptalk 2022 will address the sudden transformation in the retail environment since the outbreak of Covid-19, as the industry is looking to embrace technology and innovation to address new challenges.
On March 27, 2022, Deborah Weinswig, CEO and Founder of Coresight Research, will emcee and feature on the judging panel of Shoptalk 2022’s “Shark Reef” startup pitch competition, which will see 15 early-stage US retail-technology innovators compete to win the Shark’s Choice and Audience Choice awards. In the lead-up to the event, we are profiling the participating innovators.
This report forms part of our
Innovator Profile series, which focuses on emerging technologies that are disrupting traditional retail and fuelling innovation across the retail value chain. We present ReUpp, an online platform that supports sustainability in retail by getting customers involved with recommerce at the time of first purchase. Coresight Research collaborated with ReUpp to offer insights into its service capabilities and offerings.
Why It Matters
Coresight Research categorizes the 15 participating innovators into four areas of disruption in retail. ReUpp falls under “reducing waste and increasing sustainability.” Customers, employees and governments are increasingly demanding sustainability efforts from businesses, seeking transparency in sourcing, progress in environmental initiatives and the reporting of goals. Technology companies can assist retailers in achieving their sustainability goals, across carbon emissions reduction, waste management and more.
ReUpp: In Detail
Headquarters
Austin, Texas, US
Funding Stage
Pre-seed stage
Total funding amount: $750,000
Company Description
Founded in 2021, ReUpp works with brands and retailers to assign a buy-back value for gently used items at the time of first purchase on e-commerce platforms, generates a store credit and provides free return-shipping labels through an e-commerce API (application programming interface) integration or browser extension. The company determines buy-back prices through machine learning (ML) and propriety technology.
ReUpp aims to help support the recommerce ecosystem by giving consumers the ability to sustainably shop at their favorite brands and retailers, as well as increasing consumer loyalty and recurring revenue streams for retail companies.
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Source: Company website[/caption]
What Problem Is the Company Solving?
While many consumers want to participate in sustainable retail practices, it can be a complex process that many do not know how to approach. Logistical issues for consumers can include not knowing where to take used items for resell or reuse, not knowing the proper value of their items and not having assurance that they will even be able to sell them. For retailers, issues can include not having the infrastructure to support a secondary recommerce market or not having the financial incentive to incorporate this system into their business model.
ReUpp’s solution gives consumers an easy entryway into participating in the recommerce ecosystem at the point of purchase by using ML and proprietary technology to take care of the logistics of reselling and providing customers transparency around the resale value of their purchases. For retailers, ReUpp provides a readymade recommerce solution to use in response to growing consumer sentiment around sustainable consumption. This can increase a customer’s lifetime value as consumers can receive their buy-back value in store credit, driving repeat purchases.
Market Opportunity
As consumers continue to shift to digital shopping experiences and e-commerce, many are becoming increasingly conscious of the impact their shopping has on the environment and are looking for innovative ways to minimize detrimental effects. Coresight Research’s
US Consumer Tracker found that the Covid-19 crisis has made environmental sustainability more of a factor when shopping for almost one-third of respondents (according to our survey conducted on July 26. 2021). This indicated a clear opportunity for brands and retailers to adopt sustainable commerce practices, such as recommerce, to attract more conscious consumers through brand values.
Recent trends in macroeconomic conditions—including year-over-year inflation of 7.9% at multi-decade highs in February 2022—are likely to see consumers become more conscious of their discretionary spending and look for alternative shopping options—such as in the secondhand market. Looking at the apparel and footwear sector as an example, Coresight Research estimates that
the US fashion resale market totaled $22.3 billion in 2021 and will grow to $29.7 billion by 2023, representing a CAGR of 15.4%.
Emerging technologies will also make it easier to buy and sell secondhand items online. There is an opportunity for brands and retailers to shift their business models around supporting and participating in the recommerce market.
What We Think
We expect consumers to increasingly value sustainability when shopping across both online and offline channels—paving the way for recommerce business models to gain traction. Retailers can implement sustainable shopping practices to attract both environmentally and financially conscious audiences as well as drive repeat buyers through increased brand loyalty and incentives.
