Online experience shapes circular consumption

The circular economy, aimed at minimizing waste and making the most of resources, presents a transformative approach towards sustainability. Consumers are not frequently outlined as enablers of the circular economy, and most of the discussions in this area focus on various industries and their roles (Kirchherr et al. 2017). However, Maitre-Ekern and Dalhammar (2019) have noted that consumer behaviour (including avoiding single-use and unnecessary products, prolonging product lifetime through maintenance and repair, and promoting sharing, leasing, and second-hand products) is critical to the circular economy. The everyday choices of citizens affect and enable sustainability. Digital technologies play a pivotal role in this shift.

A hand holding a credit card and browsing an online store.
Image 1. Ecommerce offers consumers the opportunity to make choices that impact sustainability. (Image: StockSnap 2017)

Resale market on the rise

The growth of online platforms like eBay, Netflea and Vinted has revolutionized the resale market, making it easier than ever for consumers to buy and sell used goods. These platforms extend the life of products and significantly reduce waste and consumption of raw materials. For example, with a value estimated between 90 to 110 billion euros worldwide, the apparel, footwear, and accessories resale market has nearly tripled in size between 2020 and 2022, showing no signs of slowing down as e-commerce user experience (UX) is becoming easier and safer both for sellers and buyers (Estripeau et al. 2022).

In Finland, Tori.fi, an online resale platform, has over three million monthly users. The resale of, e.g., clothes, furniture, consumer electronics, and sports equipment generated were sold with over 400 million euros in 2021. (Salo 2021) Tori is also an illustrative example of how the UX affects user behaviour. In early 2024, its owner, Schibsted Finland, released a significant update of the service and app, causing tons of negative feedback and driving users to abandon the platform (Järveläinen 2024; Linnake & Kärkkäinen 2024; Freyborg 2024).

Seamless user-experience

In addition to sustainability and ethical goals, affordability, ease of use, safety, and a seamless omnichannel experience are vital for second-hand e-commerce users (Estripeau et al., 2022; Davis, 2024). The more friction a transaction includes, the more time, clicks, and steps a user needs to arrive at the expected outcome, the less desirable the service becomes.

The ultra-fast fashion giants like Chinese-owned e-commerce companies Temu and Shein have perfected their aggressive digital marketing and mobile UX, making it easy and cheap to buy rapidly produced, low-quality yet trendy apparel to update one’s styles constantly. This trend has massive ecological impacts, hampering more sustainable consumer behaviour efforts. On 14 March, France’s lower house of parliament approved a bill that banned the likes of the Chinese retail giants from advertising and mandated them to, e.g., state a product’s environmental impact. (Davis 2024; St. Martin 2024.) Understanding the role and influence of intelligent, user-friendly technologies is crucial for all shareholders to leverage consumers’ impact in the circular economy. Immersive digital UX combined with resale opportunities should thus be the centre of every sustainable business.

Author

Ari Hautaniemi works as a communication specialist in the Interreg Europe-funded CEI Boost project (link to the CEI Boost project website) at the LAB University of Applied Sciences Institute of Design and Fine Arts. 

References

Davis, B. 2024. Retailers can learn from fast UX of Shein and Temu, says Scayle’s Craig Smith. Econsultancy. Cited 26 Apr 2024. Available at https://econsultancy.com/shein-temu-scayle-craig-smith/

Estripeau R., Krueger, F., Vitrani, J., Willesdorf, S. Marteau, F., Moizant, F. & Gasc, M. 2022. What an Accelerating Secondhand Market Means for Fashion Brands and Retailers. Boston Consulting Group. Cited 26 Apr 2024. Available at https://www.bcg.com/publications/2022/the-impact-of-secondhand-market-on-fashion-retailers

Freyborg, H. 2024. Uudistettu Tori.fi kerää rajua kritiikkiä käyttäjiltä. Helsingin Sanomat. Cited 26 Apr 2024. Available at https://www.hs.fi/kotimaa/art-2000010311860.html

Järveläinen, V. 2024. Tori.fi meni uusiksi – Suomalaisten kupit nurin: “Aivan haitarista”. Iltalehti. Cited 26 Apr 2024. Available at https://www.iltalehti.fi/digiuutiset/a/3da1f2e3-ab18-4515-b554-7637cedfdbdc

Kirchherr, J., Reike, D., & Hekkert, M. 2017. Conceptualizing the Circular Economy: An Analysis of 114 Definitions. Economics Educator: Courses. Cited 26 Apr 2024. Available at https://doi.org/10.2139/ssrn.3037579

Linnake, T. & Kärkkäinen, H. 2024. Tori.fi uudistui – käyttäjät raivoissaan: “Minä luovutan”. Ilta-Sanomat. Cited 26 Apr 2024. Available at https://www.is.fi/digitoday/art-2000010306092.html

Maitre-Ekern, E., & Dalhammar, C. 2019. Towards a hierarchy of consumption behaviour in the circular economy. Maastricht Journal of European and Comparative Law, 26, pp. 394 – 420. Cited 26 Apr 2024. Available at https://doi.org/10.1177/1023263X19840943

Salo, V. 2021. Tori.fi:llä on jo yli 3 miljoonaa yksittäistä käyttäjää keskimäärin per kuukausi. Tori.fi. Cited 26 Apr 2024. Available at https://media.tori.fi/tori-filla-on-jo-yli-3-miljoonaa-yksittaista-kayttajaa-keskimaarin-per-kuukausi/

St. Martin, E. 2024. What France’s crackdown on Shein and Temu means for global ultra-fast fashion. BBC. Cited 26 Apr 2024. Available at https://www.bbc.com/worklife/article/20240320-france-bill-crackdown-ultra-fast-fashion-shein-temu

StockSnap. 2017. ecommerce-2607114_1280. Pixabay. Cited 26 Apr 2024. Available at https://pixabay.com/photos/ecommerce-shopping-credit-card-2607114/

Links

Interreg Europe. 2024. CEI Boost website. Cited 29 Apr 2024. Available at https://www.interregeurope.eu/cei-boost