1、How to boost your performance on the second-hand market?Trends,pain points and expectations of a booming phenomenon in Europe.2023 European market studyIn collaboration withA market study intended for decision-makers,updated every year and widely reported in the press.IndexWhy is the second-hand mar

2、ket booming?05The second-hand market in a nutshell 05Europe is following the booming trend 07The market is driven by a few leading channels 09Competition is getting fiercer and new players enter the market 10Key dates have multiplied on the C2C market 13Why traditional retailers must quickly positio

3、n themselves in this market?14The market could be dominated by GAMA and new unicorns NEW 14Benefits from the second-hand market are significant NEW 15Retailers have all the assets to succeed NEW 17Achieve economic profitability NEW 18What are the key factors to be considered?19Launch cost can be opt

4、imised NEW 19Generating traffic quickly is vital NEW 21Building trust and maintaining satisfaction:one of the main challenges NEW 22The Digital Services Act and its impact NEW 25Which tools to control risks and to optimise transactions?26Preserve your brand image in a risky market 26Fight effectivel

5、y against fraud and scams 27Ensure each transaction meets buyers expectations 28Prevent and fairly solve user disputes 29Optimise the user experience with added-value services 30Learn more about us 31Presentation of Tripartie 31Presentation of Wavestone 322023 European study-C2C market&4EditorialBui

6、lding trust in transactions between individualsTripartie and Wavestone provide managers with the keys to sustainable success in the fast-growing second-hand marketTripartie,a trusted third-party start-up specialising in tran-sactions between private individuals and listed in Station Fs Future 40 ran

7、king,and Wavestone,a European consul-ting firm specialising in the transformation of companies and organisations,are combining their expertise to enable decision-makers to quickly understand the keys to the fast-growing market for transactions between individuals.This new study will enlighten the le

8、aders of the second-hand sector and those who wish to position themselves on this booming market.It includes up-to-date macro-economic data,trends&key players,new consumer expectations and pitfalls to avoid.The second-hand global market is now worth more than 105 billion euros and has already attrac

9、ted over 85%of Europeans.The double-digit annual growth of the market is driven by the drop in purchasing power and the rise of e-commerce,but also by ecological considerations and the impact of the Covid crisis.Many players,generalists or specialists,online or brick&mortar,are fighting for their pl

10、ace in this market.However,behind this unbridled growth lies sometimes unfortunate reality:many users face fraud,dissatisfaction,and disputes,to the detriment of the reputation and deve-lopment of the least well-equipped platforms.For the 2023 edition of its market study,Tripartie teams up with Wave

11、stone to enlighten start-up managers,retailers,and players in the financial world on how to ensure that users have the best end-to-end experience.In this study,readers will have access to:the dynamics of the second-hand market;an opportunity study for retailers of all sectors;pain points understandi

12、ng and consumer expectations;tools to control risk and optimise transactions.Our ambition is to share our knowledge of this market to enable all brands to integrate second-hand and private transactions into the heart of their business,with complete peace of mind.We want every business to be able to

13、grow while changing our consumption habits.We wanted to colla-borate with a leading consulting firm to provide this second edition with up-to-date,uninterpreted figures and a reliable macro-economic analysis.We hope you will enjoy reading it,and are at your disposal for further information and advic

14、e.Victorien De Doncker,CEO of TripartieVictorien De DonckerCEO TripartieThomas LabayleMarketing Digital TripartieJulien MiniconiDirectorWavestoneYasmina InsaAnalystWavestone2023 European study-C2C market&5Why is the second-hand market booming?The second-hand market in a nutshellC2C DefinitionC2C Dia

15、gramThe second-hand market,also called“resale”market,may take the form of C2C(for“customer-to-customer”)tran-sactions.C2C transactions can happen online or offline.Thus,we will,in this document,define this market as a place where consumers can sell,rent or trade goods or services to other consumers

16、physically or online thanks to a website or a platform that acts as a host.During the transaction,the role of the host is to facilitate the transaction between the seller and the customer.When it comes to online transactions,most C2C platforms take a commission for bringing the parties together but

17、business models can be different according to the types of tran-sactions.In C2C marketplaces,the intermediary plays mostly a matchmaking role.SellerBuyerSells/rents products or servicesBuys products or servicesPassive role:matching,possibly payment&delivery trackingMarketplace2023 European study-C2C

18、 market&6C2B2C DefinitionThere is another model that allows two consumers to trade on the second-hand market,this model is called“C2B2C”for“customer-to-business-to-customer”.As on the C2C market,C2B2C transactions can happen online or offline.Thus,we will,in this document,define this market as a pla

19、ce where consumers can sell or rent goods or services to other consumers physically or online thanks to a website or a platform.The main difference between these two models is that the intermediary plays an active role during the transaction by adding some value to the goods exchanged.Unlike C2C tra

20、nsactions,the intermediary may purchase directly the products or services from consumers and own it or simply repack/repair/improve them.In C2B2C marketplaces,the intermediary plays a wider role and may take care of logistics and/or reconditionning,repackaging,C2B2C DiagramSellerBuyerWants to sell/r

21、ent products or servicesWants to buy products or servicesActive role:matching,payment,delivery tracking,possibly verification of authenticity or repackagingMarketplace2023 European study-C2C market&7Europe is following the booming trendAn estimated market of at least 105 Bn Worldwide,growing at a fa

22、st paceThe booming growth of the European C2C mar-ket is visible everywhere.The rise of Europes lea-ding second-hand C2C platform Vinted,whose Euro-pean membership has grown from 23 million in 2019 to 45 million in 2022,is a good indicator of this trend.Focus on the clothing market:The market size i

23、s getting bigger and bigger&the expected growth is x25times hi-gher than E-commerce Five main reasons for that booming trend:low prices,rise of the e-commerce,ecological awareness,COVID and unfitting gifts The main driver of the second-hand market is still price.On the buyers side,buying second-hand

24、 goods is a way of coping with a deteriorating pur-chasing power,particularly in the context of the crisis linked to the global pandemic.In fact,according to a Growth from Knowledge study published in November 2020,the purcha-sing power of Europeans fell by 5.3%in 2020 compared to the previous year.

25、If we look at the car market,the main motivation for consumers to buy second-hand is financial,as there are significant savings to be made.The average price of a used car is around 17,000 while the average price of a new car is 27,500.Thus,in 2020,Europeans bought three times more second-hand cars t

26、han new ones.The rise of the e-commerce is also a major factor:over the last few years,e-commerce has been experiencing an exponential growth worldwide mainly due to an increase in the Internet accessibility,to lower costs of transactions,and to the advent of new tech-nologies such as new mobile dev

27、ices that have improved the overall customer experience.This trend plays well for C2C platforms,which benefit from this overall rise in Internet traffic.The rise of e-commerce in Europe is likely to remain strong,as most European countries trail the US,the UK and China in terms of e-commerce penetra

28、tion.In addition to this economic argument,ethical and ecological considerations are reshaping Eu-ropean habits and driving consumers to buy se-cond-hand goods.According to a survey conducted by the Fashion Revolution Foundation in December 2020 among 5,446 people in Germany,France,Italy,Spain and t

29、he UK,80%of the respondents stated that sustainability is an im-portant factor for them when it comes to buying clothes.Nearly 50%of the respondents buy second-hand for environmental reasons,with a view to redu-cing waste,limiting their impact on the planet and fighting against overconsumption.The C

30、ovid-19 lockdown was an opportunity for many consumers to experience a forced“reduction in consumption”that encouraged them to question their consumption habits and their impact on the environment.By promoting re-use and the circular economy,buying second-hand goods meets consumers environmental con

31、cerns,particularly millennials and Gen Z.In addition to the demand drivers mentioned above,there are supply drivers that explain the growth of the second-hand market.In fact,the multiplication of C2C platforms simplifies for individuals the sale of unwanted goods.Thus,according to a Kantar study,in

32、2020,more than 10%of European citizens were planning to resell some of their Christmas gifts on the Internet,and this ranged from a duplicate book to clothing that was not the right size,or simply a gift that was not to their taste.The second-hand market is therefore a godsend for households,which s

33、ees it as a source of additional income.Source:ThredUp2019$28B2024$64B$7B$21B$28B$36BTotal second-handResaleRecycling&donation2023 European study-C2C market&8E-commerce revenues&share of the GDP:123 Bn 5,2%of GDPFrance 100 Bn 3,2%of GDPGermany 39 Bn 2,4%of GDPItaly 254 Bn 10,3%of GDPUK 82 Bn 6,6%of

34、GDPSpainSource:IMF7 out of 10 people already buy second-hand clothes1 out of 5 person have already sold their phone on the second-hand market2023 European study-C2C market&9The market is driven by a few leading channelsOnlineBrick&MortarC2C generalist marketplaces:Online platforms on which private s

35、ellers can directly sell or rent their products to end customers.The service can be free for individuals.C2C specialised marketplaces:Specialised marketplaces stand out from generalist plat-forms thanks to their customer journey adapted to the sector in which they are positioned,allowing customers t

36、o have access to a relevant offer and to filter products finely ac-cording to specific criteria.Social media marketplaces:Platforms linked to social networks,connecting buyers and sellers and allowing users to filter products by category or geography.Consignment shops:Brick and mortar stores where p

37、rofessional dealers store items(clothing,furniture,electronic products,etc.)from private individuals with the aim of selling them.The reseller is paid via a commission only once the item is sold.Buy and resell shops:Contrary to consignments shops,Buy and resell professio-nals immediately buy goods f

38、rom individuals before reselling them.Antique dealers:Professionals whose job mainly consists of acquiring,res-toring and reselling valuable or quality antique furniture,works of art and knick-knacks with the aim of making a profit margin.Second-hand goods dealers&flea markets:Like antique dealers,t

39、hey sell used furniture.However,pro-fessionals only guarantee the sale of the object as is and are not required to authenticate or date the objects acquired.Social and solidarity economy players:Charity organisations such as Emmaus are important players in the second-hand market,through their sales

40、of used products in their stores or via their website.2023 European study-C2C market&10Competition is getting fiercer and new players enter the marketDue to the growing popularity of the second-hand market,the battle is intensifying between generalist and specialist players.With an almost exhaustive

41、 offer,generalist platforms reach wider audiences than specialised marketplaces and lo-gically generate more sales.As they are older,they have succeeded in capturing customers and building a brand image recognisable by general public.In this sense,the French leader Leboncoin(29 million unique visito

42、rs per month in 2022)is the 2nd most visited e-commerce we-bsite of the country,and the 6th website behind global giants Google,YouTube,Facebook,Wikipedia and Amazon.In 2020,Leboncoin hosted 25Bn worth of transactions,which represents 1%of the countrys GDP.However,specialised second-hand platforms a

43、re starting to seriously compete with generalist platforms.They stand out thanks to their better ergonomics than ge-neralist platforms,which can sometimes seem like“catch-all”marketplaces,but also thanks to their more intuitive product search and filtering options.In short,they offer a smooth and le

44、ss tedious shopping experience than on generalist platforms.This has prompted the generalist players to react to the meteoric rise of the specialist platforms.For example,Leboncoin acquired second-hand fashion platform Vide-dressing in 2018,which allows Leboncoin to partner with a specialised fashio

45、n player that enjoys a more premium image.Another advantage of this acquisition is the fact that Videdressing takes care of additional services such as online payment,checking the conformity of items,delivery and a money-back guarantee,in return for a commission charged to the buyer.This acquisition

46、 allows the generalist player to better position itself in one of the fastest growing segments of the second-hand market.Specialised online players are gaining field on generalist platforms2023 European study-C2C market&11C2CC2B2CGENERALISTAUTOMOTIVEFASHION/BEAUTYSPORTS/TRAVEL/ENTERTAINMENTBOOKS/ELE

47、CTRONICSCHILDCAREHOME/FURNITURESERVICESMatrix of C2C&C2B2C European players by segments2023 European study-C2C market&12Traditional retailers also want to be a part of itFurthermore,competition is also getting fiercer between second-hand pure players and traditional retailers who see the second-hand

48、 market as a source of additional income and an opportunity to diversify.Most of mass retail players are now positioned in the second-hand market.Most of them have chosen to approach this market by deploying shop-in-shops or corners dedicated to the purchase and resale of a wide range of electronic

49、products at the entrance to their outlets.There are several objectives to this diversifi-cation in the sale of second-hand products:meet a growing demand for reconditioned or used products,build customer loyalty by paying the sellers of second-hand products in vouchers that can be used in their shop

50、s,and revitalise the frequentation of their hypermarkets.The growing consumer interest in second-hand goods is attracting attention beyond the mass retail sector.In fact,faced with a 15%contraction in the fashion market over the last 10 years,fashion and furniture retailers are multiplying their ini

51、tiatives to capture the growing second-hand seg-ment,driven by more ecological consumption habits.For example,in August 2020,Kiabi opened its first second-hand clothing corner,while in January 2021,the French website La Redoute launched La Reboucle,a new platform for selling second-hand clothing,fur

52、niture and decorative objects.As part of a loyalty strategy,La Reboucle offers sellers the opportunity to be paid in e-gift cards with a 25%bonus.Following the same dynamic,the German online fashion platform Zalando announced in September 2020 the launch of a second-hand offer in Germany,Spain and F

53、rance.On their side,brick and mortar second-hand retailers such as antique shops and buy&resell shops have a lot to do to defend their market share.In fact,The coronavirus crisis has taken online shopping to a new level.The periods of closure of“non-essential shops”in European countries and the conc

54、ern of a part of consumers to limit their risks of exposure to the Covid-19 by turning away from physical stores have led to a massive shift in sales from shops to online channels that attract users thanks to many advan-tages:wide range of offers,accessibility,ease of product comparison,etc.This phe

55、nomenon will inexorably contribute to boosting sales of second-hand products online.Thus,one of the biggest challenges for physical second-hand retailers is to make a rapid transition to digital,by proposing more user-friendly and more ergonomic websites,and by offering a fluid purchasing journey on

56、 mobile Apps.and GAMA are comingLast but not least,social media marketplaces such as Facebook Marketplace also threaten to reshuffle the cards when it comes to the second-hand market.With its 420 million unique European visitors per month,Facebook has the assets to seriously compete with pure player

57、 of the second-hand thanks to the power of their algorithms and their detailed knowledge of the profiles and preferences of its members.Other GAMA giants follow the same direction.In fact,Ama-zon launched in 2018 Amazon Second Chance,an extension of the marketplace offering attractively priced secon

58、d-hand items certified as functional and of good overall quality.The e-commerce giant stands out by offering the Amazon Renewed one-year warranty on second-hand electronics.Why should you invest on the second-hand market?Boost your revenuesTarget new customersIncrease customer loyalty2023 European s

59、tudy-C2C market&13Key dates have multiplied on the C2C market The yearly calendar is punctuated by many holidays and commercial events that see a sharp increase in sales of second-hand products.Whether its buying a second-hand bike on 1st January as part of a new resolution or reselling a duplicate

60、gift after the Boxing Day,the second-hand market experiences regular peaks throughout the year.10 KEY DATESASSOCIATED EVENTNEW/OLD TRENDIMPACT ON C2C VOLUMES1st JanuaryNew Years DayOLDHIGH14th FebruaryValentines DayOLDMEDIUM17th AprilEasterOLDLOW21st JuneAmazon Prime DayNEWLOW31st OctoberHalloweenNE

61、WLOW11th NovemberSingles DayNEWLOW26th NovemberBlack Friday (+Thanksgiving)NEWMEDIUM29th NovemberCyber MondayNEWMEDIUM25th DecemberChristmas DayOLDHIGH26th DecemberBoxing dayOLDHIGH31st DecemberNew Years EveOLDLOW2023 European study-C2C market&14Why traditional retailers must quickly position themse

62、lves in this market?The market could be dominated by GAMA and new unicornsThe main actors involved in this market are categorised un-der generalist and specialist platforms.Generalist platforms have been established for a while now,as an example Ebay was launched in 1995.They have succeeded in build

63、ing a strong brand image and allow the consumers to find eve-rything they need on a single platform.In the US,in 2021,the most used online marketplaces for selling second-hand items are generalised platforms such as eBay,Facebook Marketplace,Craigslist or Mercari.Until 2016 GAMAs were not present in

64、 this market.Now,anyone registered on Facebook has access to Facebook Marketplace which makes nearly 3 billion people in the world.Amazon entered the sector in 2018 in the US with the extension Amazon Second Chance.Google shopping tab dedicated to second-hand items has existed since 2015 and jumped

65、since 2020.The second-hand market worthy of$105B worldwide has become a booming trend and is growing at a fast pace.Classified ads websites have established themselves as the leading players in the second-hand market by attracting a large clientele and giving buyers and sellers alike access to a ver

66、y wide range of products.They helped stimulate the growth of the entire second-hand market!NEWSecond-hand market offers good growth prospects and it is far from being consolidatedNewer players have distinguished themselves through the UX and functionalities of their platform,making it easier to find

67、 specific items.Vinted is a good example:launched in 2013,it has been a huge success all across Europe and especially in France,its first market in number of users.The platform has quickly distinguished itself from its main competitors and attracted a large audience by offering new services.Vinted s

68、implified the buying and selling experience as much as possible.As a buyer you dont even notice that you are buying in a neighbouring country as the ads are automati-cally translated and the shipping experience is very smooth.The platform also positions itself as a trusted third party and does its b

69、est to bring trust,contributing to the explosion of the second-hand fashion market.Despite the dominance of this Lithuanian startup,there is room for all fashion players,as long as the strategic ap-proach is well defined.We give some important reading keys below in this study.One of them is the abil

70、ity of retailers to integrate the second life of products in the BtoC purchase path of new goods.Of course,this new consumer trend is long term and covers all retail verticals.Fashion was the first market to grow really fast,but electronics,home furnishings,sports ac-cessories and even services that

71、 can be provided between individuals are following.According to the study LuxCo,the second-hand market will generate+20%revenues of any luxury retailer that gradually puts sustainability at the heart of its strategy by 2030.In an economy where consumers are increasingly turning to the second-hand ma

72、rket,it is in the interest of the major retailers to be present.They need to develop this activity to capture the demand.2023 European study-C2C market&15Benefits from the second-hand market are significantSecond-hand market is becoming more and more a dynamicThe demand for second-hand products is i

73、ncreasing:46%of respondents to the Global Consumer Survey had bought at least one second-hand product in the last 12 months.It is interesting to observe the growing share of online intermediation of transactions between individuals.The share of transactions made online has now largely exceeded the s

74、hare of transactions made by word of mouth.Even better,the trend is towards specialised platforms taking market share.We are facing a verticalisation of the market and there is a real market opportunity for retailers.Ranking volumes and dynamics of the main C2C transactional channelsThe market is in

75、 full diversification,boosted by consumers expectations(lower purchasing power and ecological aware-ness in particular).This is a great opportunity for retailers as they are already largely digitised and have most of the tools to launch quickly under good conditions.Source:XerfiPositionDynamicGenera

76、list C2C platformsCash and carry shopsSpecialised C2C marketplacesE-commerce websitesLocal brocantesBtoC Marketplaces123456Great opportunity for RetailersGreat opportunity for Retailers2023 European study-C2C market&16Selling second-hand products stimulates BtoC in-store and online trafficRetailers

77、are currently testing a wide variety of business models and user journeys around the world.Some of them allow to attract and retain a new category of consumers by mixing the purchase of new and second-hand products.Attracting traffic to physical stores is entirely possible thanks to second-hand prod

78、ucts,especially by offering dedicated departments or,better still,value-added ser-vices.Some networks have qualified employees who can recondition products before putting them back on the sales circuit.Others allow individuals to buy a spare part to repair their products by themselves.This strategy

79、increases the drive-to-store since the tran-saction is done in the brands outlet.Most people who get a good deal on a second-hand product are inclined to buy a new product once they get there,taking advantage of the improved purchasing power.The easiest trick to implement and the most impactful for

80、the turnover is to include the sale of second-hand products within the E-commerce site.You already benefit from signifi-cant traffic on your website,so why not take advantage of it?In any case,mixing the sale of used products with the sale of new products,in stores or online,is a way to regain contr

81、ol over the secondary market of its brand,to better control its image and avoid its degradation,and to reclaim the income generated on the second-hand market which was captured before by specialised platforms like Depop or Vinted.Support their environmental policyAccording to the Ellen MacArthur Fou

82、ndation,fashion will have consumed a quarter of the global carbon budget by 2050.Luxury and fashion must rethink their strategy with regard to the carbon footprint and integrate the potential of sustainable economic development.Our industry has to integrate the CSR commitment for en-vironmental as a

83、wareness is growing among the new ge-neration and in the economy:millennials are increasingly demanding in terms of cor-porate commitments;Investment funds are increasingly attentive to compa-nies environmental commitments.Retailers from all sectors now have to adopt a circular model to extend the l

84、ife of products and/or increase their usage.The second-hand market is a way to durably transform the economic model.2023 European study-C2C market&17Retailers have all the assets to succeedA strong brand imageMature companies already well established in BtoC and known to the general public have foug

85、ht long and hard to get to this point and make their visual identity,vision,va-lues and products known.All past promotional campaigns,events,public announcements,in-store or web presence are a major asset that can be directly activated to launch a new activity.Retail companies already have a strong

86、customer base the-refore they do not have to spend tons of financial money on marketing to create a new audience.The key is to integrate this new business into existing distribution channels both to leverage existing traffic and capture new customers,but also to avoid disrupting the execution of ope

87、rational teams.Proven distribution channelsIf the retailer has a network of physical stores then this is a good opportunity to maximise in-store traffic through second-hand and give quick exposure to this new business.The geographic network can be a major asset to face the competition of the 100%dig

88、ital players,because all the user paths are then possible.If it is the sale of additional accessories to improve the condition of a product before it is put back on sale or the reconditioning that is prioritised,the physical stores can become hubs allowing to guide consumers in the resale of their s

89、econd-hand goods.This way,the retailers expertise can be put forward,consu-mables can be sold to improve used products,and additional traffic in stores will be generated,directly resulting in the sale of new products.If it is the sale of new goods that are complementary to used goods or the sale of

90、additional services such as in-surance products or other guarantees that are prioritised,the physical stores can be used to generate new interest or attract new customers.In any case,the presence of a dedicated second-hand de-partment in the stores allows the brands ambitions to be exposed and suppo

91、rts online initiatives.If the retailers main distribution channel is its E-commerce site,an exclusively digital approach to the second life of products is quite feasible and relevant.The advantage is that the brands online presence is already strong,that the traffic on the site has a history and can

92、 only improve thanks to the new C2C activity.The risk would be to create a new platform dedicated to second hand without linking it to the existing e-commerce site:first because generating new traffic from scratch is costly and time consuming,and second because consumers expect a unique user experie

93、nce regardless of the condi-tion of the products.A good practice is therefore to mix the second-hand buying experience into the BtoC journey.Retailers have all the keys to success!A known and visible brandA network of physical storesA reactive customer service and after-sales policyTechnical experti

94、sePowerful transactional tools2023 European study-C2C market&18Achieve economic profitabilityThe question of profitability is key especially for companies which have not made C2C as their core activity.A lot of different business models are currently being tested by retailers and the level of profit

95、ability is scattered.Because of the competition already in place and the lower average baskets in second-hand than in BtoC,it is important to clearly define your objective.Economic profitability must in all cases be an objective to ensure the long-term sustainability of the project.In addition to th

96、e positive benefits of the second hand on the brand image and the retention of new customers,we can list few additional sources of revenue:Commissions on sales volume:a percentage of the sale price is collected by the platform in return for the introduction and protection services provided;Platform

97、subscription:users can purchase an optional subscription to unlock new features;Advertisements:on the website;Paying options:users can promote their products“top-of-the-list”and in return they pay a supplement fee;More BtoC traffic:C2C has a positive impact on the core activity and attracts new cust

98、omers in the physical stores and on the E-commerce of the brand.Responsive customer serviceDuring the last few years,generalist platforms have been very successful,based on a C2C model,without providing the necessary security to their users.Fraudsters have taken advantage of this to sell counterfeit

99、 goods,organise scams or commit non-payment.Generalist platforms were traditionally passive and external to transactions because their economic model was at the time elsewhere,notably with advertising.They could not provide solutions to dissatisfied users due to lack of tech-nical and human resource

100、s.The transition to a transactional model where the platform receives a commission on each sale is slow for these his-torical players.Retailers have a huge advantage on the subject,which is based on the modernity of their tools,their knowledge of the transactional model and above all the ability to

101、support consumers when needed.In summary,retailers can make the difference thanks to the reactivity of their customer service and the simplicity/transparency of their after-sales policy.2023 European study-C2C market&19What are the key factors to be considered?Launch cost can be optimisedIn this sec

102、tion we group the different cost items together to give the reader an idea of the minimum budget required to start a business between individuals,whether as a primary or secondary activity.We favour a test&learn approach in order to validate step by step the user path and the really useful features.

103、The objective is to be efficient in order to reduce both the go to NEWmarket and the budget.A proof of concept/MVP approach is highly recommended to start such an activity so real users can give their feedback and the product team can iterate.Note that many teams are running out of time integrating

104、basic payment and parcel shipment tracking functionalities,whereas Plug&Play solutions exist and go much further,par-ticularly to make exchanges more reliable and automated.The different phases in the creation of an online C2C marketplaceHere is an overview of the different steps involved in creatin

105、g an online marketplace for second-hand goods.The ideation phase is often the longest stage and includes the whole process of market and opportunity analysis.It also includes an initial study of the service providers to be involved and the internal validation of the project,for example by the board

106、of directors.The project description and budget allocation stage is preliminary to all others and allows the teams to be orchestrated.The legal work can usually be carried out in parallel in order to save time,but it requires the project to be properly framed so that the jurists have a good idea of

107、the business model,the user path and the functionalities deployed.It mainly covers a study of the risks and the regulatory framework applicable to the new activity,the drafting of dedicated general terms of use,and the validation of the privacy policy with regard to the GDPR.The technical developmen

108、t of the marketplace is probably the most challenging and resource-intensive stage.Delivery delays are frequent and must be anticipated,so choose quality partners.Finally,the deployment and user acquisi-tion phase can begin before the technical work is finalised.MonthsEnd of ideation(x months)Acquis

109、itionLegal partDescription and budget allocatedDevelopment of the marketplace0123456Including meeting with services providersCan be done during the whole development phase(1 month)(1 week)2023 European study-C2C market&20Costs linked to the development of a new marketplaceThe spreadsheet below gives

110、 you an overview of the different costs linked to the creation of a C2C marketplace.Of course,these budgets are only indicative and are intended to provide a quick test with a limited investment.STARTUP OR SMEMEDIUM-SIZED RETAILERLARGE-SIZED RETAILERCreation of the marketplace(including all the func

111、tionalities to handle transactions)Up to 50kBetween 50k and 100kBetween 100k and 150kPayment solution(setup,integration and first months of use)5k to 10k10k to 30k30kAcquisition(covers all acquisition topics during the first months)60kHuman Resources(dedicated to the acquisition,support and product

112、development)1 to 4 full-time em-ployee(s)4 to 8 full-time employees 8 full-time employeesLegal advice(covers all legal issues necessary for a compliant deployment)20k2023 European study-C2C market&21Generating traffic quickly is vitalThe main dilemma in setting up a second life business is the follo

113、wing:there are no potential buyers without a proper offering available on the marketplace and sellers are not keen to create an account on a platform without buyers.Logic and practicality,however,dictate that you start by putting together an offer of goods or services to sell in order to attract cus

114、tomers.In addition to the usual ways of boosting acquisition-social media campaigns,search engine optimisation,emailing the existing user base or advertising on television-here are some tips:Mobilise professional sellers:some shops with stocks of unsold,returned or second-hand goods will be happy to

115、 be listed on your platform to create a core offer.Slightly damaged packaging and de-fective items can be included.The advantage is that you can get hundreds or thousands of products by convincing just one professional entity.Alexandre DuquenoyCSOOrigami Marketplace is a marketplaces development com

116、pany specialised in the circular economy.“Origami Marketplace and Tripartie have joined forces to boost the use of the circular economy and invent the future of transactions between individuals in Europe thanks to a technological solution based on the API model.”Involving employees:get your team inv

117、olved by asking each person to put his own products or services on the platform to grow a new offering with trust,confidence and to satisfy first“real users”.Do not minimise the positive impact that your core group of early adopters will have as they will talk to their friends and family about the c

118、oncept,especially if you focus on virality thanks to vouchers or sponsorship programs.Creating momentum and being smart:famous companies used to fake their activity at the be-ginning to boost their attractivity,if necessary by spending some money.For example,Uber paid drivers to be available and res

119、ponsive when the first customers showed up.2023 European study-C2C market&22Building trust and maintaining satisfaction:one of the main challengesGiant C2C websites such as eBay,Vinted or Leboncoin have become the hunting ground for endlessly inventive scammers.For example,with more than 800,000 new

120、 ads every day and more than 100 million transactions per year,Leboncoin has become a platform that attracts all kinds of scammers,of which both buyers and sellers can become victims.Most scams take place when it comes to transactions that are made beyond the scope of the website.Many scammers lure

121、their victims outside the marketplace,in-viting them to communicate by SMS or e-mail and pay via parallel channels(bank transfers,fake credit card payment links,etc.)which leaves the field open to various deceptions that include fake photos,poor product quality,counterfeit products,theft of bank dat

122、a via phishing,packages not received or cancelled payments.For all these reasons,mar-ketplaces users show a lack of confidence in C2C market-places,especially when the amount of transaction is high(e.g.,vehicle sales).However,deception persists even when C2C websites manage payments between buyers a

123、nd sellers.Scam-mers have developed techniques in order to bypass the websites secure payment system.The most common one is one that involves a buyer/scammer who simply claims that the product received is not in conformity with the ad.In this case,the general terms and conditions of the mar-ketplace

124、s require the buyer to return the item in order to cancel the sale and get back the money.As proof,the buyer provides the marketplace only with the tracking number of the parcel,without having to justify its content.In other terms,the scammer can take the product,replace it with a product of lesser

125、value weighing the same,and return the package to the seller.In this case,the secure payment system of the platform will block the transaction and return the money to the buyer.Zoom on online second-hand vehicles sales,a sector that is highly exposed to scamsThere are 3 main categories of scam when

126、it comes to buying a second-hand car online:Payment scamsScams related to the characteristics of the carScams related to the administrative procedures of the sale2023 European study-C2C market&23Payment scams When selling a car for example,the payment stage is one of the most vulnerable to scams.In

127、fact,pay-ment scams account for 28%of all scams identified.These can include:A forged bank cheque:Difficult to identify for a novice individual.Especially since it takes nearly two weeks for the bank of the seller to realise that it has been falsifiedA virtual bank transfer:The sellers account is vi

128、rtually credited with a fake or stolen cheque.Once the bank realises this(within ten days),the account is eventually debitedA payment for an amount higher than the price:The buyer pays the seller with a bank cheque for an amount higher than the value of the vehicle.He explains that this difference i

129、s to pay an interme-diary and asks the seller to reimburse him for the difference.Once the bank realises that the cheque is forged,the sellers account is debited,and his pay-ment(for the so-called“difference”)is a dead lossCounterfeit notes:When paying in cash,the buyer may pay the seller with count

130、erfeit notes(often in small denominations)Scams related to the characteristics of the car Lying about the condition of the vehicle is a common habit among fraudsters.These fraud techniques include:Tampering with odometers:Whether its an old-fashioned odometer or a newer one,some people are masters a

131、t it and have the knowledge and tools to reduce the number of kilo-meters on the odometerHidden defects:Sometimes a dishonest seller deliberately hides a defect that could have influenced the buying deci-sion or changed the purchase priceStolen cars:Some stolen vehicles are resold.In this case,the b

132、uyer may be penalised,even if he bought the car in good faithWreck scam:This is a case where a vehicle that is not running(taken off the road)is visually repaired but with little or no mechanical repair.Apart from the financial loss,this scam can have serious consequences and put the buyers life and

133、 the lives of others at risk on the road2023 European study-C2C market&24Scams related to the administrative procedures of the sale Selling or buying a used car requires a few admi-nistrative steps to be taken.Unfortunately,some fraudsters know how to find loopholes that can make people fall into th

134、e trap when they sell their car.These fraud techniques include:Non-declaration to the prefecture:This scam is similar to a usurpation of number plates.The concept is simple,the buyer simply does not declare the change of ownership to the prefecture.In the event of an infringement,the seller,as the o

135、fficial owner,will receive the ticket and not the fraudsterMisappropriation of information from an official document:A potential buyer may ask the seller for a copy of his vehicle registration document or service book(often under the pretext of being wary of scams).Once ob-tained,the personal inform

136、ation they have gathered allows them to create a false ad and defraud others.On top of scams,other things can go wrong in C2C transactionsEven the most honest sellers can generate dissatisfaction.Users do not have the same perception of quality:is a pro-duct in good condition or not?If the C2C platf

137、orm does not guide its users,misunderstandings may arise.A virtuous example is the UX journey of the famous car sharing platform Getaround.Each user is carefully guided through a mobile application to check the condition of the car before and after driving it.This feature,among many others,helps elu

138、cidate the exact condition of the exchanged good.Users do not always give the proper level of information on their products:they do not always take the best pictures/give the most relevant pieces of information,or forget to indicate accurately the condition of a key element such as the condition of

139、the battery in the case of the sale of a smartphone.Broadly speaking,19%of transactions between individuals go wrong.C2C platforms are particularly affected by dissa-tisfaction.However,physical stores and C2B2C platforms are not spared even if the quality of the goods exchanged is better controlled.

140、2023 European study-C2C market&25The Digital Services Act and its impactThis study is not intended to address legal issues such as GDPR or PSD2,which are already widely covered elsewhere,but we would like to draw your attention to a recent body of rules that concerns all marketplaces operating in Eu

141、rope.A recent legal framework being deployedThe EU adopted a new legal framework to hold marketplaces accountable&fight against the abuses of the web,such as disinformation or counterfeiting.Let us briefly recall the legal and economic context that led the European legislator to build a new body of

142、rules before explaining the impact of the Digital Services Act.Following their publication in the Official Journal of the Eu-ropean Union,the Digital Markets Act(DMA)entered into force on 1 November 2022 and the Digital Services Act(DSA)on 15 November 2022.Second major step in European digital regul

143、ation after the Digital Markets Act,which regulates markets,the European Council and Parliament agreed on the Digital Services Act.The first part aimed to fight against the dominant position of the web giants.The second part will regulate digital ser-vices.With the Digital Markets Act,the DSA will s

144、et new standards for the coming years to govern the digital space and the conditions of competition for businesses.The DMA updates the 20-year-old E-Commerce Directive.The principle is simple:what is illegal offline must also be ille-gal online.Classified ads&C2C platforms are all concerned,even the

145、 smallest startups.Measures depend on their role,size,and impact on the online ecosystem.Platforms will have to tighten controls or face penaltiesThe European Commissions press release states that the DSA contains EU-wide due diligence obligations that will apply to all digital services that connect

146、 consumers to goods,services,or content,including new procedures for faster removal of illegal content as well as comprehensive protection for users fundamental rights online.Concretely,the Digital Services Act contains:1.Measures to counter illegal goods,services or content online,such as:a mechani

147、sm for users to easily flag such content and for platforms to cooperate with so-called trusted flaggers;new obligations on traceability of business users in online marketplaces.2.New measures to empower users and civil society,including:the possibility to challenge platforms content mode-ration deci

148、sions and seek redress,either via an out-of-court dispute mechanism or judicial redress;provision of access to vetted researchers to the key data of the largest platforms and provision of access to NGOs as regards access to public data,to provide more insight into how online risks evolve;transparenc

149、y measures for online platforms on a va-riety of issues including on the algorithms used for re-commending content or products to users.3.Measures to assess and mitigate risks such as:obligations for very large platforms and very large on-line search engines to take risk-based action to prevent the

150、misuse of their systems and undergo independent audits of their risk management systems;Mechanisms to adapt swiftly and efficiently in reaction to crises affecting public security or public health;New safeguards for the protection of minors and li-mits on the use of sensitive personal data for targe

151、ted advertising.4.Enhanced supervision and enforcement by the Com-mission when it comes to very large online platforms.The supervisory and enforcement framework also confirms the important role for the independent Digital Services Coordinators and Board for Digital Services.The Digital Services Act

152、provides for sanctions against com-panies that violate certain provisions of the text.Fines of up to 6%of the turnover of the offending companies are envisaged.2023 European study-C2C market&26Which tools to control risks and to optimise transactions?Preserve your brand image in a risky marketWhy th

153、e second-hand market is risky?Broadly speaking,19%of transactions between individuals go wrong if they are not properly managed and secured according to Tripartie.C2C platforms are particularly affec-ted by dissatisfaction,however physical stores and C2B2C platforms are not spared even if the qualit

154、y of the goods exchanged is better controlled.Whatever the business model you operate,your brand image might be at risk as the consumers associate it to their online experience.The situation can get worse as we saw for example the French consumer association UFC-Que Choisir sueing Vinted,notably by

155、using the argument that their“buyer protection”commission was a misleading commercial practice.Using the right tools when you enter in the second-hand market is key both to preserve your brand image from users dissatisfaction and to comply with legislation linked to per-sonal data and financial flow

156、s.19%of sales between private consumers go wrong.The level of quality is unreliable.Fraud and non-payment concern both buyers and sellers.Stphan DomagalaSenior Account ManagerLemonway is a French payment institution created in 2007.Lemonway is a payment solution for market-places and participatory f

157、inancing platforms,which allows to collect funds on behalf of third parties.“Tripartie and Lemonway have teamed up to offer you a simple and perfectly compliant payment ex-perience:optimise your flows and fully exploit the potential of your C2C marketplace!”2023 European study-C2C market&27Fight eff

158、ectively against fraud and scamsNumerous solutions can be interwoven to help C2C plat-forms fight against fraud and scams.Electronic device identification as a primary barrierAnalysing and establishing the unique identifier of the connected device allows to assess its level of trust.The objective is

159、 to identify fraud networks and detect massive attacks.If someone is buying goods online to be delivered in a particular region but his IP address is coming from abroad,then you maybe need to investigate more about this customer.User online reputation consultation to refineIn order to effectively fi

160、ght against risky profiles without impacting the journey of trusted profiles,a trust pre-score can be assigned to each user as a preventive measure.In the case of a seller,this pre-score will be determined even before the ads posting,while in case of a buyer it will be determined before the payment

161、stage.The platform can enrich the scoring algorithms with an unlimited amount of data to constantly refine the protec-tion:personal data,number of pages visited,customer qualification(“new”,“old”,“VIP”),use of discount coupons,sponsorship,etc.In addition,anti-fraud specialists pool the information c

162、ollected from one platform to another so that a mutual database is constantly updated.The final scoring is based on all the elements used by the pre-score,plus the payment information provided by the payment service provider and the data pooling.It thus pro-vides feedback on the bank card used,detec

163、ts suspicious behaviour in greater depth and automatically manages spe-cific risk profiles for each type of platform.Live update of transaction characteristics to monitorThe characteristics of each transaction also constitute a non-negligible lever against fraud and make it possible to automate cert

164、ain controls,which are very useful when the platform starts to generate significant traffic.As an example,it is therefore advisable to monitor the sel-ling price of goods or services traded on the platform to compare them with the average prices on the market,in order to detect inconsistencies and c

165、heck them.In the same vein,monitoring the photographs uploaded by users can often detect scammers reusing the same ones over and over again.Particular attention should be paid to choose the right anti-fraud tool,to avoid disrupting user experience and reducing conversion rate or overall traffic of t

166、he platform.William Ben ChemouilCEOWith 20 years of experience,Oneytrust is the European pioneer in fight against online fraud and digital profiling.“The solution we are deploying with Tripartie for the benefit of professionals,private sellers and consu-mers enables end-to-end security of transactio

167、ns between individuals,while improving the customer experience on marketplaces.From user registration to transaction completion,our solution secures all the parties involved so that the transaction can proceed without any friction.Managing this subtle balance between security and customer experience

168、,that is our expertise!”2023 European study-C2C market&28Ensure each transaction meets buyers expectationsThe importance of the go to market Provide a smooth digital experienceOne of the keys to perform on a fast-changing market is your ability to quickly deploy your new activity.This“go to market”s

169、trategy must therefore include a reflection on the tools to be used.The choice depends on many parameters such as your available internal resources,the quality level of the offers deployed by your competitors or simply your willingness to insource or outsource.It is recommended to ask oneself if it

170、is preferable to be in continuity with current practices or if going beyond can present a competitive advantage.As the users must remain at the centre of your concerns to guarantee the effectiveness of the go to market strategy,choose the digital experience that is most in line with your promise and

171、 the characteristics of the user personas.Not taking this into consideration would alter the good positio-ning of the newly created offer.New solutions are emerging to offer an optimal digital ex-perience and above all risk-free transactions between in-dividuals.If your goal is to reproduce on your

172、platform or in stores the experience of buying goods or services as if they were marketed by trusted professionals,several safeguards and functionalities shall be deployed.To secure each transaction,we recommend deploying the following features:A powerful anti-fraud device based on real-time data an

173、d behavioural analysis,in order to detect potential fraudsters upstream and prevent them from taking action.Automated payment management via E-wallets,to avoid the buyer sending money directly to an unknown seller,to guarantee a timely payment to the seller and to take your possible commission.A too

174、l to edit shipping slips to avoid errors,simplify the life of sellers and track shipments in real time.A video proof feature to empower users by protecting both the buyer and the seller,and to have reliable data in case of disputes.2023 European study-C2C market&29Prevent and fairly solve user dispu

175、tesClaims and disputes will unmistakably arise,however cau-tious a platform may be in terms of fight against fraud and information display.Even the leading actors and the most technologically ad-vanced platforms such as Vinted or Airbnb are facing qua-lity problems as well as difficulties when deali

176、ng with user dissatisfaction and disputes about the goods or services exchanged.There are various reasons for that:first,claims and disputes arise when the traffic increases i.e.when the Marketplace starts to be successful.All of a sudden,users start to report hundreds of complaints to the customer

177、service department which can be quickly disconcerted if it is not well structured.The user evaluation system was for years the only safe-guard to ensure a minimum of seriousness between users.However this is no longer enough because consumers are more and more demanding and expect a similar quality

178、of service as on the primary market.Major platforms are strugglingPartial refund of the price paid is a quick fix used by most of the platforms to solve user claims and disputes.This prac-tice is very expensive for the company and/or its insurance company and the buyer may remain unsatisfied because

179、 the refund is only partial.On the other side,the seller may carry out his bad practices since he is not really penalised.New solutions ariseTripartie developed a SaaS tool to keep the disputes resolu-tion process internally while automating most of it.The bias is to make the users active,to collect

180、 reliable key information of each dispute,and to solve it in a fair way.This first step to efficiently solve a dispute is to lead an amicable settlement between the buyer and seller.The latter is informed by email of the buyers claim and can accept the renegotiation or contest it.In many cases,the u

181、sers will find a solution by themselves,without the intervention of the Marketplace customer service.The satisfaction rate of the platform is positively impacted.The most complex cases will require the intervention of the Marketplace customer service which will be able to focus on arbitration to del

182、iver value.With the relevant data and a dedicated tool,it is easy to make quick and fair decisions.2023 European study-C2C market&30Price negotiation can be complex,as it is directly linked to the payment stage.Indeed,once an offer is accepted by the seller,the platform must be able to proceed to pa

183、yment,ideally without further intervention from the buyer.Offering payment facilitiesOffering your users solutions to finance their purchases can remove major obstacles and improve the conversion rate.Payment in instalments by card also helps to increase the average basket and customer loyalty.For t

184、he marketplace,it is a secure solution guaranteed against fraud and unpaid customers.On the buyer side,the payment is very smooth,no proof is required nor contract and the instalments are debited directly to the bank card.Denis RemiszPayment Partnerships ManagerCofidis has been offering financing so

185、lutions to mer-chants,marketplaces and e-commerce sites on the European market for over 30 years.“Integrating Cofidis offer allows our partners to improve their transformation rate and increase the average basket size.In order to answer the new cus-tomers expectations on the second-hand market,Cofid

186、is and Tripartie join forces to offer a complete range of services dedicated to this sector of activity.”Optimise the user experience with added-value servicesFocus on added-value featuresNow that you know how to manage the specific risks of this market and deliver on your promise to users,why not g

187、o one step further?Increasingly,consumers expect online platforms to offer ser-vices similar to the in-store experience.In the second-hand market,this translates into new expectations to gain more flexibility.To save time,focus on ready to use and custo-misable solutions!Negotiating the price with t

188、he sellerHistorically,the negotiation of the sale price between the buyer and the seller is done orally and the exchange of the property from hand to hand.Nowadays,contact is most often made by electronic means,and the price is negotiated at a distance.However,this is an important step that should n

189、ot be ne-glected,as it could have a negative impact on your conver-sion rate.A good price negotiation feature will be able to automatically handle user notifications,multiple requests,their expiration and acceptance.2023 European study-C2C market&31Learn more about usPresentation of TripartieSecond-

190、hand market is riskyThe level of quality is unreliable.Buyers and sellers are facing fraud and non-payment.C2C platforms have a bad reputationTripartie protects 100%of your platforms exchanges and keeps you out of troubleMarketplace solution Disputes resolutionEnhance the quality of your service and

191、 save timeFraud detection Automatically detect fraudulent transactionsDeliveryEasily offer parcel shipment and trackingEscrow paymentsCustomise payment flows using E-wallets Trusted by+50 teams and +1.000.000 ads secured by Tripartie!Why not your platforms?Automate user dispute resolution with AI an

192、d enhance the quality of your service Disputes resolution centerSTAND-ALONE AVAILABLEUP TOless time spent by customer service on each disputeUP TOof complaints automatically resolved by usersadditional commissions generated for the platformPrevent&resolve disputes on C2C platforms.Easily.#payments#a

193、ntifraud#trust#disputeresolution#AI#SaaS2023 European study-C2C market&32Learn more about usPresentation of WavestoneAbout WavestoneIn a world where knowing how to drive transformation is the key to success,Wavestones mission is to inform and guide large companies and organizations in their most cri

194、tical transformations,with the ambition of a positive outcome for all stakeholders.Its an ambition anchored in the firms DNA and embodied in the signature“The Positive Way.”Wavestone draws on about 4,000 employees across Europe where it is a leading independent player in consulting,the United States

195、 and Asia.Wavestone is listed on Euronext Paris and recognized as a Great Place to Work.Supporting the most critical transformationsIn a world where knowing how to drive transformation is the key to success,Wavestones mission is to inform and guide large organizations and public institutions in thei

196、r most critical transformations.Areas of excellenceWavestone was built on the conviction that the implementa-tion of multidisciplinary teams is key to successful transfor-mations.The firm offers a 360 vision of these transforma-tions by closely combining the best business,technological and sustainab

197、le development skills.Our corporate values“The Positive Way”is the name of the value base on which Wavestone is based,the roots and glue of the teams that bind our teams together.A set of 4 essential values that acts as a compass,becoming more and more valuable as our company extends.Client Satisfac

198、tion Employee Development Responsibility&Ethics Collective MindsetSectors Financial Services Manufacturing Consumer Goods&Retail Energy&Utilities Transportation&services Government&International InstitutionsExpertise Customer Experience&Service Design Industry 4.0&IoT Supply Chain IT Strategy&CTO Ad

199、isory Finance,Performance&Procurement Cybersecurity Data,Analytics&AI Agile Operating Model&Sourcing Sustainabilityyears business experienceMillion euros in annual revenueclient satisfaction 30470.193%More information on +33(0)1 75 85 03 Documentary sources:ThredUp-2022 Resale Report(2022)Statista-V

200、arious studies(2020-2022)Xerfi-Various studies(2020-2022)IMF-Various studies(2020-2022)Fashion Revolution Foundation-Various studies(2020-2022)Bain&Company Various studies(2021-2022)Les Echos-Young people who no longer want to buy new(2021)Les Echos-Vinted raises 250 million to accelerate in Europe(

201、2021)France Strategic Report-For a sustainable development of e-commerce(2021)Toute la Franchise-The second-hand market:a sector in full economic boom(2021)EuroCommerce for retail and wholesale-2021 European e-commerce report(2021)GfK-Map of the Month:GfK Purchasing Power Europe 2020(2020)Pollfish x

202、 Site-annonce-Furniture and second-hand(2020)eBay-Reselling Christmas gifts:7.3 million French people to resell their Christmas gifts(2020)Research Nester-Off-the-shelf second hand furniture market by furniture type-Global Industry insights&opportunity evaluation 2017-2025(2017)GlobeNewswire-Global

203、refurbished and used mobile phones market to reach US$44,100 Mn by 2026(2018)Fevad Key figures for e-commerce(2022)ThredUp Resale Report(2022)Amsterdam University of Applied Science&CMI HvA 2021 European e-commerce report(2021)Ellen Macarthur Foundation Completing the picture:How the circular economy tackles climate change(2021)Retail Gazette Dr Martens to enter resale market with Depop collaboration(2022)2023 European studyC2C marketIn collaboration with