8 February 2022
The preservation of the environment and natural resources is gradually becoming a major issue, both for individuals and for companies. If until recently, ecology and economy seemed difficult to reconcile, today these two notions are no longer in contradiction and can coexist effectively via the circular economy. Discover the opportunities that the circular economy marketplace model can bring to your business!
A circular economy marketplace is first and foremost a marketplace, i.e., a platform where several buyers and several sellers, individuals and/or professionals, are brought together to buy or sell products or services.
A popular model, the circular economy marketplace is distinguished by the type of products offered for sale or purchase. Indeed, they exclusively feature second-hand products, i.e., second-hand, remanufactured products, materials leftover, or by-products of production. Drivy, Vinted, Backmarket… Circular economy marketplaces are increasingly appealing to individuals, but also B2B and B2C professionals. For companies, setting up a circular economy marketplace has many advantages.
Since February 2020, the anti-waste law for a circular economy, aims to fight against waste and programmed obsolescence by encouraging companies to produce better and get out of the disposable everything. Before it, the concept of the circular economy had officially entered the legislation in 2015, with the law on energy transition for green growth. In France, this law helped define the transition to a circular economy as a national objective.
From sourcing to extending the useful life, to improving product prevention, management, and recycling, these laws call on companies to take environmental and social impacts into account. All these actions are enabled by the creation of a circular economy marketplace, making it an excellent way to respond to these recommendations. Thus, to comply with the law, while enhancing their work, many companies are seizing the circular economy as a real lever for their competitiveness and brand image.
Beyond being a perfect tool to address environmental issues, the circular economy marketplace allows companies to control the life of their products from A to Z.
Thanks to the circular economy, a product can have several lives. When it reaches the end of its life and cannot be resold as is, recycling or upcycling can give it a new use. Offering to buy back the resources from a product from professional and/or private customers gives the possibility to keep them in the economic cycle and to reuse them to recreate value. Choosing a circular business model also means considerably reducing the production of waste and ensuring that the company makes savings as a result of the reduction in the cost of processing and disposal.
It is also possible to make money from company waste (e.g., by-products), as this will be used as a secondary raw material by another production line.
Dormant stock can also be valued through rental or sale to other professionals, with secure online payment. Here too, the creation of a circular economy marketplace will save money, by reducing storage costs.
Creating a platform entirely dedicated to the sale or rental of your brand’s second-hand products will allow you to keep control of the second-hand market before other players take it over. This virtuous circle will also be an opportunity to strengthen the links with your customers.
According to a study published by Havas Paris, CSA Research, and L’Express: “76% of companies believe that social and environmental responsibility (SER) will have an impact on their business model”. The creation of a circular economy marketplace is fully in line with this approach and allows companies to respond to what represents a new business challenge for them.
These two concepts meet and complement each other since their common goal is to respect the challenges and objectives of sustainable development by improving the social, environmental, and economic impact of the market economy.
Back Market, Recommerce, Remade, Le Bon Coin, Vinted… This value proposition can be found among many brands, determined to reduce their environmental impact and improve their image. In B2B as well as in B2C or C2C, creating a circular economy marketplace gives the company a responsible image and reaches audiences that are increasingly sensitive to this approach. It is also a way to continue the customer relationship as much as possible, by increasing loyalty, while keeping control of the entire payment chain.
As a certified payment service provider, Lemonway will help you create your circular economy platform by taking care of the implementation of your payment solution. Are you planning to launch your circular economy marketplace? Do you have questions about the payment solution to implement? Tell us about your project!
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