An Integrated Conceptual Model of Recommerce in the Circular Economy

Abstract

This study explores recommerce as a key mechanism within the circular economy (CE) supporting sustainable development. Although the exchange of second-hand goods (SHG) has existed for centuries, its business processes, market structure, and principal components remain insufficiently systematized. Designed as a conceptual paper, the research employs a literature analysis to identify the defining characteristics of SHG, examine the role of product re-use within the CE, analyse the principal actors, business processes, market channels, and implementation challenges, and develop an integrated model of recommerce. The findings demonstrate that recommerce creates economic, environmental, and social value by extending product life, improving resource efficiency, reducing consumer expenditure, generating new business opportunities, and promoting sustainable consumption. The proposed integrated conceptual model brings together the definition, process, market structure, implementation challenges, and key interrelationships of recommerce into a unified framework, explaining the relationships among its principal drivers, inputs, business processes, market channels, and long-term outcomes. The proposed model provides practical implications for retailers, policymakers, and researchers, establishes a theoretical foundation for future empirical research supporting circularity and sustainable development, and requires further validation across different industries and national contexts.