In recent years, the return of goods ordered online and the secondary market for pre-owned items have been steadily expanding. More and more companies are realizing that this can become a new driver of profit growth – provided that logistics can be properly and smoothly integrated into these processes.
“Logistics has long become the invisible backbone of our society. Without this system, which supports production, trade, and is an integral part of each of our daily lives, everything would simply come to a halt. Moreover, logistics is gradually becoming a strategic factor that can increase companies’ competitiveness, contribute to sustainability goals, and significantly improve customer experience,” says Gediminas Mickus, Vice President for the Baltics at Posti Group.
Growth of the secondary market
In recent years, the popularity of the secondary market has been growing even faster than traditional trade in new goods. For example, sales in the second-hand clothing sector are expected to grow five times faster than those of new clothing in the coming years – by an average of about 13% annually.
Moreover, the secondary market is not limited to clothing: people actively purchase used electronics, furniture, children’s goods, leisure equipment, and home décor items. It is already common practice in mobile phone stores to offer a discount on a new device in exchange for an old one, then refurbish the old device and sell it as used for a second time.
“The secondary market is becoming increasingly accessible to a growing number of people. Thanks to a wide and continuously expanding range of digital platforms, buyers have far more opportunities to find exactly what they are looking for. These platforms are also investing more in convenience and security: they use advanced and secure identification and payment tools that differ little from traditional e-commerce. This reduces barriers to purchase and increases consumer trust,” notes G. Mickus.
Of course, the secondary market still faces certain challenges. A recent survey conducted by Norstat on behalf of SmartPosti across the three Baltic countries, Finland, and Sweden revealed that 41% of buyers often doubt the quality of purchased goods, 33% question their reliability, and one in five agree that the process of buying on the secondary market can be complicated.
Highlighting that process inconvenience is also a major barrier for 41% of sellers, the Vice President for the Baltics at Posti Group emphasizes that well-organized logistics solutions can help overcome these barriers and ensure a smooth supply chain for goods purchased on the secondary market.
Logistics as a builder of trust
As the secondary goods market grows, logistics is becoming not only a means of moving goods but also a tool for building trust between buyers and sellers. According to G. Mickus, the key elements ensured by efficient logistics include easy shipment between consumers, the ability to track items, and clear criteria and rules that allow buyers to return goods safely and conveniently.
“The rapidly expanding secondary market requires logistics to smoothly manage decentralized, consumer-initiated flows of deliveries and returns. This demands additional resources, responsiveness, flexibility, well-functioning IT solutions, and technical compatibility – both within e-commerce platforms and in direct peer-to-peer trade,” notes the Vice President for the Baltics at Posti Group.
Parcel lockers – a key last-mile solution
With the growth of e-commerce and increasing volumes of returns, “last-mile” solutions are becoming particularly important, ensuring that customers can collect their parcels quickly, conveniently, and at any time.
“Among all the countries where Posti Group operates, examples from Estonia and Finland show that a wide and convenient parcel locker network can significantly contribute to efficient logistics for returns and secondary market trade. Parcel lockers help reduce costs, lower fuel emissions, and most importantly – offer convenience to customers, who can pick up or return shipments at any time that suits them,” says G. Mickus.
Technological development continues to enhance parcel locker functionality: digital payments are being integrated, return processes are being improved, and other innovations are being tested. Gradually, biometric authentication – such as fingerprint or facial recognition systems—is also being introduced in parcel lockers, enabling users to collect their parcels even faster and more easily without additional steps or codes.
“I believe the next technological leap in logistics will be related to artificial intelligence. It is already increasingly used, for example, to determine optimal delivery routes, significantly reducing CO₂ footprints, saving time, and lowering fuel costs. In the future, artificial intelligence could also optimize the placement of parcel locker networks, manage compartment allocation, better adapt them to specific parcel sizes, and improve overall logistics efficiency,” concludes G. Mickus, Vice President for the Baltics at Posti Group, which owns SmartPosti.