A typology of second-hand business models

Abstract

With the rise of new markets, in which products and resources are reused and redistributed, marketers must find new ways to orient and manage their business models. This study addressed one such development–the second-hand economy–which lengthens the lifespan of used goods through redistribution of their ownership. While previous research has analysed the second-hand economy mostly from a consumer perspective, a systematic understanding of value creation in this realm is lacking; hence, this study used a business perspective to construct a typology of second-hand business models. This resulting typology serves as an important analytical tool for understanding the variety of ways in which companies engage in the second-hand economy. The paper concludes with implications for managers who are either threatened by emerging second-hand business models, considering entering the second-hand market, or already engaged in second-hand commerce.