Consumption that operates according to the principle of circular economy is growing steadily. According to Tori’s survey in October 2019, 76% of Finns believe that in a few years’ time, they will buy more second-hand products than now. Most of this trade is C2C, or consumer-to-consumer, e-commerce. C2C trade is not registered in any other statistics than the actors’ own databases.
“As C2C trade is not directly visible in GDP, its scale is not understood. Therefore, the C2C domestic product is not registered anywhere, even though it is clearly part of consumption. For instance, the more than 2.4 million monthly users of Tori spent a total of MEUR 626 in commerce through Tori in 2018. C2C e-commerce has the potential to increase tenfold. In order to redeem this enormous potential, the sale and purchase experience must be as smooth and seamless as possible for consumers. This is what we have started refining together with Posti,” explains Tori’s Marketplace Director Timo Huhtamäki.
The smooth customer experience has been created in a customer-oriented manner, for instance, by interviewing customers of both companies. An expression of the cooperation is the Tori parcel, where the transport of a customer parcel can be purchased effortlessly from the Tori service.
“With the Tori parcel, the customer does not need to deal with many different companies on various websites. The nation-wide shipping opportunities and our quickly expanding Parcel Locker network bring the C2C e-commerce delivery points close to every consumer. With them, the seller reaches a wider buyer base, while buyers can select a product they prefer from a larger selection. Together, Tori and Posti enable consumer-to-consumer trade around Finland. C2C trade will be a significant part of e-commerce in the future”, says Timo Korander, Head of Consumer and Digital Services at Posti.
From the corner of the closet to cash funds
In addition to an improved customer experience, Tori and Posti’s cooperation is also steered by the ambition to promote circular economy. With the help of seamless C2C e-commerce services, it’s easy to give products you no longer need a new life.
“No one knows the size of the Finnish goods balance. However, it’s clear that there are usable goods worth billions of euros just lying in our closets. When we get a larger part of the quality goods that are currently collecting dust in people’s storages and closets into use, it will play a significant role for the entire national economy. When we put these overflow goods to work, the Finnish wellbeing increases and consumption becomes more sustainable for the environment,” Huhtamäki emphasizes.
Buy second-hand — do the climate a favour
In practice, C2C e-commerce is one of the most important methods as we move towards a more environmentally sustainable e-commerce. The trade in second-hand goods separates purchasing behavior from the consumption of natural resources.
According to Posti’s report on the environmental impact of e-commerce, most of the environmental impact of e-commerce is created already as products are manufactured. When a consumer buys second-hand goods from, for instance, Tori or a recycling group on social media, emissions from the manufacture of those goods and importing them to Finland are avoided completely. At the same time, the goods’ lifecycle becomes longer.
Did you know:
- In 2018, the impact of trading second-hand products on Tori on reducing emissions was as much as 0.15 million tons of carbon-dioxide emissions and 5,383 tons of plastic. The reduction corresponds to the manufacture of 760 million plastic bags and, for example, the volume of traffic in Helsinki standing still for over two months.
- Consumers who use Posti’s services can do even more to reduce emissions if they want to. From October 2019, Posti is the first logistics company to offer customers the possibility to compensate for the carbon emissions generated by sending parcels in Finland. Regardless of the size or weight of the parcel, the compensation is EUR 0.05. Posti forwards the compensation in full to the Compensate foundation, which uses the funds to reduce the amount of carbon dioxide in the atmosphere.