Recommerce — selling second hand goods — is a growing market, with many businesses offering trade-in programs, refurbishment services, and online marketplaces for second-hand goods. This shift toward recommerce is driven by several factors, including consumer demand for more sustainable products and a growing awareness of the environmental impact of electronic waste.

The 10th Anniversary Edition of The Carousell Recommerce Index reports that 55% of Asians engage in sustainable shopping due to worries about the effects of climate change on the environment.

Recommerce isn’t just about reducing waste and conserving resources. It also offers businesses many benefits, including lower costs, increased efficiency, and improved customer engagement. By reusing existing products and components, businesses can reduce the need for new resources, lower the cost of production, and minimize their environmental impact.

Recommerce helps companies improve their customer relationships. For example, Carousell Group, the top multi-category platform for second-hand items in Southeast Asia, has increased its focus on electronics recommerce after acquiring Laku6, the leading AI-powered electronics recommerce platform in Indonesia. By combining Laku6’s AI technology and expertise with Carousell’s large user base, the company has introduced new features to make buying and selling used electronics more trusted and convenient.

Laku6’s diagnostic center and team for the Singapore market are now located in the same building as Carousell’s Singapore office and regional headquarters. This centralization helps improve collaboration between the two groups. Carousell and Laku6’s technology teams are working together to continually enhance the recommerce experience for customers on Carousell’s platforms.

Quek Siu Rui, the CEO and co-founder of Carousell Group, stated that the significant growth potential for electronics recommerce in Southeast Asia is projected to reach US$ 18.6 billion by 2026. He believes that Carousell Group is well-positioned to solidify its leadership in the industry.

“Together with Temasek unit Heliconia Capital, we had made one of the largest capital investments in the region for electronics recommerce, by earmarking US$ 25 million for the expansion of electronics recommerce,” said Quek. “We have seen strong results in the past few months. Laku6 has continued to maintain its leading position in Indonesia’s online mobile recommerce market, having inspected and transacted over half a million mobile phones. Carousell has seen a growth of 55% in the past half year alone in mobile phone transactions.”

Revolutionizing the recommerce experience

Carousell Group launched the Sell to Carousell service in Singapore, a new feature resulting from the integration with Laku6. This service allows users to sell their mobile phones directly to Carousell in less than 24 hours, either from their homes or by visiting an iStudio outlet. Carousell has partnered exclusively with iStudio, the largest Apple Premium Reseller in Singapore, giving them access to over 20 drop-off points, optimizing logistics and providing iStudio with new selling opportunities.

To use Sell to Carousell, users provide information about their phone’s condition through a short form on the app or website. The Group’s smart pricing algorithm then generates an estimated quote. Users can have a Carousell agent visit their home for device inspection and instant payment or visit a physical store to complete the process.

Sell to Carousell utilizes Laku6’s proprietary AI-first diagnostic technology to quickly assess the condition of second-hand mobile phones, taking less than two minutes, and confirms the final quote using its smart pricing algorithm. This process is fully automated, eliminating the possibility of human error in the assessment. Users are not obligated to sell their phone after receiving the final quote and are free to change their minds.

“We have seen how Sell to Carousell has been able to unlock new user segments by reaching out to time-starved buyers who want to sell second-hand phones. We will soon launch similar products in Vietnam and Malaysia, where we have a leadership position in classifieds through our brands Cho Tot and Mudah.my, respectively, and continue to make the recommerce market more accessible in the region,” said Quek.

Carousell’s next objective is to offer an advanced option for purchasing certified mobile phones with a warranty. This move will give users the peace of mind and convenience of buying a new phone when shopping for second-hand phones, offering users more choices and flexibility in their second-hand shopping experience.