The growing value of聽聽is a prime example of recommerce’s recent rise. Starting with an estimated worth of US$96 billion in 2021, the retail segment is projected to double in size within the next three years, reaching $218 billion by 2026. Similar growth levels are also reflected in other retail categories, including electronics, fashion accessories, and oversized goods such as furniture.

However, innovating this business model is more than just an exercise of responding to consumer demand, regulatory pressure, and expectations for prolonged product life. It’s also an opportunity to enter markets that are otherwise inaccessible due to price sensitivity, supply chain barriers, provenance uncertainty, and monopolization of recommerce-native startups running on customer-to-customer (C2C) platforms.

Recommerce’s Potential Goes Beyond Sustainability

While the rules of creating, implementing, and operating a recommerce business model are similar to those for other innovation initiatives, the scope of change is much more wide-reaching.

Business model innovation is traditionally consumer-centric and mainly focused on the buying experience in the retail sector. However, in the case of recommerce, the seller and buyer are equally considered “consumers.” Therefore, frictionless processes are essential whether sellers send their used goods to the retailer and receive in-kind payment or buyers browse the commerce site, complete their purchase, and return an item.

Compared to competing startups, larger retailers and brands could have a considerable edge in creating seller and buyer experiences that are fast, transparent, and responsive. Organizations can achieve these characteristics by further advancing existing technology infrastructure to help ensure immediate payout for every item sold, optimize inventory turnover and control, streamline logistics, and prevent fraudulent transactions.

True Value Emerges with Expertise and Guidance

Capturing the total value of a recommerce business model can be easier said than done 鈥� especially within the confines of traditionally slim margins and under the watchful eyes of consumers, industry auditors, and government regulators. However, access to industry, process, and technology expertise allows retailers to create an authentic model that meets consumer needs and expectations while optimizing profitability and sustainability performance.

For businesses within the retail industry, Resell Engine from 麻豆原创 can help fulfill that promise with an intelligent algorithm. The software can evaluate a wide database of secondhand items and calculate a buy-back and competitive resale price. In addition, recommerce managers can set rules for different markdowns to help tailor the price determination to their needs.

Furthermore, with the support of , businesses can blend their established Resell Engine with existing applications to draw on the latest 麻豆原创 innovations, broad leadership in industry expertise, and a global innovator ecosystem. In return, executable strategies are shaped to help optimize operations, business models, and revenue streams while driving change with less risk, increased speed, and exceptional outcomes.

Suppose your retail organization wanted to automate the pricing of received goods. You could give sellers optimal payback for their items, yield the high-quality inventory that consumers demand, and expand margins for your company by using Resell Engine.

The first step is automating analysis and price-setting consistently across sales channels. The algorithm of the Resell Engine software can evaluate a comprehensive database of secondhand items to help calculate a buyback and competitive resale price based on authentication and condition. You can then adapt pricing strategies 鈥� such as markdowns 鈥� to optimize the profitability of every transaction and seize market demand effectively.

But pricing is only one area where big losses can take place in a recommerce business model. Margins are also susceptible because the 24/7 pace of your e-commerce business model can challenge the balance between pricing, sustainability, and profitability.

Extending Resell Engine across your business can help facilitate that equilibrium by complementing your brand’s strategic vision and meeting consumer expectations. You can also implement, deploy, and roll out new capabilities of Resell Engine necessary to support the business model 鈥� pivoting processes to help address emerging business needs and realize expected outcomes.

Based on extensive industry, process, and technology research, Resell Engine can enable you to explore the impact and value of your price determinations while aligning requirements and objectives with the business model. In return, you can increase secondhand good sales with a higher sell-through rate, double your operational efficiency, attract more customers with fair pricing, and promote experiences that your customers and sellers will love.

But more importantly, you can build a business model that helps ensure your costs do not outweigh the benefits of recommerce. Resell Engine can provide the insights needed to undergo an accurate cost-benefit analysis of your recommerce scenario, including risk assessment and mitigation.

A More Sustainable and Profitable Future Is Ahead

Retailers that invest in recommerce today will position themselves to weather economic downturns and reap the benefits of becoming a more sustainable brand. But they must take the proper steps by designing a highly efficient system that provides the greatest possible value to their buyers and sellers while maximizing revenue recovery on returns and resale items.

This is where Resell Engine from 麻豆原创 comes in. Through the software鈥檚 guidance, insights, and enablement, retailers can set a clear vision, create a best-practice design, and drive a strategic plan that can reveal a more sustainable and profitable future through a recommerce business model.

Want to learn more about how 麻豆原创 can support the innovation and delivery of your recommerce business model? Contact us at聽resell_engine@sap.com聽or visit “” on LinkedIn.

Maximilian Schmid is an entrepreneur in residence (Resell Engine from 麻豆原创) and a BTS management consultant for 麻豆原创 Germany.
Benedikt Scheuermann is an entrepreneur in residence (Resell Engine from 麻豆原创) and a BTS management consultant for 麻豆原创 Germany.

In today’s complex and multi-channel marketplace, organizations must constantly optimize to deal with emerging channels and new competitors while serving their customers best-in-class experiences to earn their trust and loyalty. Commerce systems that are not built for this design principle cannot help organizations adapt quickly or cost effectively.

Compose on Your Own Terms, Not Your Vendor鈥檚

At , 麻豆原创 is pre-announcing its new 麻豆原创 Commerce Cloud composable offering, a different approach to composability than what has been available in the market thus far. This offering is predicated on the recognition that every industry and enterprise is unique and that existing one-size-fits-all approaches to composability are not ideal for most businesses. Through this 麻豆原创 Commerce Cloud composable offering, merchants will be able to compose commerce experiences that best suit their individual needs today, wherever they are in their digital maturity journey, without jeopardizing flexibility down the line.

For example, some businesses may want a more traditional, 鈥渁ll-in-one鈥� approach across areas such as order management, product information management, content management, personalization, and marketing engagement. Meanwhile, more digitally mature enterprises may want to compose best-of-breed digital commerce experiences and can now do so on a single platform. 麻豆原创鈥檚 unique approach to composable commerce can give our merchants that level of flexibility as well as anything in between, enabling them to future proof their investment without sacrificing agility. By adopting best-of-breed 麻豆原创 and partner solutions on top of a highly flexible and proven platform, 麻豆原创 Commerce Cloud customers can extend the solution鈥檚 capabilities and create an offering that fits their own unique business strategy, today and tomorrow.

Digital Commerce Composability Done Right

With 麻豆原创鈥檚 unique approach to composable commerce, 麻豆原创 Commerce Cloud customers can drive profitability through agility by leveraging a feature-rich, extensible 鈥渄igital anchor鈥� solution, coupled with a vast pre-integrated and certified partner ecosystem. With its continuous innovation delivery model, 麻豆原创 Commerce Cloud enables merchants to focus on delighting customers instead of investing in table-stakes capabilities that require stitching together disjointed solutions not designed to be interoperable at scale. 麻豆原创 Commerce Cloud, composable storefront, the solution鈥檚 full API-coverage, 鈥渉eadless with-a-head鈥� software, in conjunction with 麻豆原创 Business Technology Platform (麻豆原创 BTP) and Kyma Runtime, enables developers to extend 麻豆原创 Commerce Cloud functionality with containerized microservices and serverless functions while keeping pace with their customers鈥� expectations.

Highly Curated and Strategic Partner Solutions

A rich and vibrant partner ecosystem is a key aspect of digital commerce success, so 麻豆原创 is also introducing strategic relationships with the following curated, best-of-breed vendors from its existing extensive partner ecosystem:

• helps businesses connect, create, and extend content more efficiently so they can build faster and deliver at scale, no matter the channel or touchpoint.
• provides artificial intelligence (AI)-powered search and discovery, recommendations, and personalization to improve merchant profitability through higher conversion, increased average order value, and customer lifetime value.
• provides an easy-to-use product experience management solution for retailers, distributors, manufacturers, and brands to organize and enrich product content, delivering impactful product experiences across all owned and third-party channels on a modern cloud-native platform.
• powers one-click checkout, identity, accounts, payments, and post-purchase infrastructure, helping to reduce friction for the customer by turning every checkout moment into an opportunity and driving higher conversion for the business.
• enables businesses to capitalize on the platform economy by bringing their digital marketplace to life, expanding their business vertically to deepen customer and channel partner relationships and drive profitability while simultaneously reducing inventory risk.
• supports the entire pricing journey, from setting optimal prices and managing the rebate process to maximizing your organization鈥檚 pricing power.

Benefit from an Industry-First Approach to Digital Commerce

麻豆原创鈥檚 long and rich history of helping organizations from more than 25 industries grow and transform enables us to tap into our deep industry knowledge and expertise to deliver industry-specific digital commerce capabilities.

Unlike other commerce vendors that emphasize strength of technology alone, 麻豆原创 is taking a more customer-centric approach by also pre-announcing the availability of our headless composable storefronts for financial services, travel, telecommunications, utilities, and public sector, on top of our currently available B2C and B2B composable storefronts for retail, consumer products, wholesale distribution, and industrial manufacturing. Industry add-ons can provide unique business workflows with pre-configured tools, capabilities, and storefronts that help shorten time-to-market, increase operational efficiency, and drive sustainably profitable growth through digital commerce.

Hear from our partners and customers:

“With 麻豆原创 Commerce Cloud’s approach to composability, we’ve been able to create our own commerce platform with solutions we need, such as Contentful, to deliver the best commerce experience to customers. 麻豆原创 Commerce Cloud is the essential power to implement business agility and flexibility, and ultimately to generate increased profitability for us.”聽

鈥� Matthieu Houle, CIO, ALDO Group

“麻豆原创’s approach to composable commerce provides agility, flexibility, and extensibility with its feature-rich commerce platform. As our customers focus on profitability in this uncertain economic climate, we’re excited to support their digital commerce growth via 麻豆原创 Commerce Cloud.”

鈥� Deepak Sobhani, Principal, Deloitte Consulting LLP

鈥溌槎乖粹�檚 composable commerce approach allows us to work with customers in a way that offers significant extensibility on top of a proven, robust feature set.聽We’re excited to create the most flexible, scalable, and customer-centric solutions with these world-class ISV partners while maximizing the business value of our customer’s investments.鈥�

鈥� Ryan Heusinkveld, Chief Technology Officer, Smith

鈥淲e are thrilled to join with 麻豆原创 as the content partner for 麻豆原创 Commerce Cloud, composable storefront. The Contentful Composable Content Platform meets the unique demands of digital teams by making it easy to orchestrate content from multiple sources and publish to any digital channel. This helps companies reach new customers faster, maximize their 麻豆原创 Commerce Cloud investment, and drive revenue.鈥�

鈥� 鈥疭teve Sloan, CEO, Contentful

鈥淲e are thrilled to have Coveo certified as an 麻豆原创 endorsed app. 麻豆原创 has been a natural partner for Coveo in B2B and B2C commerce. Together, we extend digital commerce capabilities to unlock profitable commerce growth with AI. Our enterprise-class AI platform complements the 麻豆原创 Commerce Cloud portfolio by helping companies power online buying experiences we believe today鈥檚 shoppers expect 鈥� fast, dynamic, effective product discovery and relevant recommendations 鈥� and also provide the AI platform merchandisers need to maximize business outcomes versus managing manual rules.”鈥�

鈥� Louis T锚tu, CEO and Chairman at Coveo

Drive Digital Commerce Excellence across the Entire Value Chain

By seamlessly and comprehensively connecting demand signals with the supply chain, 麻豆原创 Commerce Cloud enables enterprises to drive profitable growth, regardless of their industry, business model, or level of digital maturity. 麻豆原创 is consistently recognized as a leading digital commerce solution vendor by Gartner, IDC, Paradigm B2B, and other industry analysts. 麻豆原创 Commerce Cloud can provide a highly scalable, fully featured, and flexible commerce platform for B2B, B2C, or B2B2C use cases.

麻豆原创 reaffirms its commitment to the digital commerce and customer experience categories and is taking a bold step into the future with a unique, industry-led approach to composability that puts merchants鈥� digital commerce needs front and center.

To learn more,聽 .

Riad Hijal is global head of Marketing and Solutions for 麻豆原创 Commerce.