Circularity and Recommerce: Building Scalable Consumer Models

Vishal Salunkhe, Vice President | Carousell Group
THE RISE OF RECOMMERCE IN SOUTHEAST ASIA

Recommerce — the buying and selling of pre-owned goods — is rapidly becoming one of the fastest-growing segments of digital commerce.

Speaking at DELIVER Asia 2026 in Singapore, Vishal Salunkhe, Vice President at Carousell Group, outlined how the company has evolved from a simple peer-to-peer marketplace into one of Southeast Asia’s largest recommerce ecosystems.

Operating across seven markets and multiple brands, Carousell now supports tens of millions of users trading items across categories including fashion, electronics, vehicles and luxury goods. The company’s mission remains simple: make second-hand the first choice for consumers.

But achieving that goal requires more than just a marketplace.

WHY RECOMMERCE IS DIFFERENT FROM ECOMMERCE

A central theme of Salunkhe’s talk was that recommerce cannot simply replicate the operating models used by traditional eCommerce platforms.

In conventional eCommerce, the same seller typically ships thousands of identical products. This standardisation allows fulfilment and logistics networks to scale efficiently.

Recommerce operates very differently.

Each transaction typically involves a unique product, a different seller, and a different logistics requirement. Items can range from a low-value clothing item to high-value electronics, luxury bags, or large furniture.

Packaging requirements, delivery formats, and risk profiles vary widely, creating operational complexity that traditional eCommerce models are not designed to handle.

BUILDING TRUST AND CONVENIENCE INTO THE PLATFORM

Historically, peer-to-peer marketplaces relied on simple chat-based transactions where buyers and sellers arranged to meet in person.

However, consumer expectations have changed.

During the COVID period, Carousell accelerated its development of integrated checkout systems, escrow payments, logistics partnerships, and product verification programmes.

These additions introduced several key layers of trust into the marketplace, including:

  • Escrow payment protection

  • Integrated shipping options

  • Certified product programmes for categories such as mobile devices, luxury goods, and vehicles

  • Warranty mechanisms for selected listings

These capabilities helped transform the platform from a simple listing service into a structured commerce ecosystem.

DESIGNING LOGISTICS FOR RECOMMERCE

One of the most significant challenges Carousell faced was adapting logistics infrastructure to support millions of unique products moving between individual consumers.

Door-to-door courier models proved inefficient for many transactions, particularly when sellers were unavailable during typical pickup windows.

Instead, Carousell adopted hyper-local logistics strategies tailored to each market.

In Singapore, the company partnered with SingPost to create a drop-off network that allowed sellers to ship items easily without coordinating home collection. Later, additional partnerships expanded the network to over 500 drop-off locations while simplifying packaging and labelling processes.

In Taiwan, a different solution emerged. Carousell integrated with the country’s dense 7-Eleven logistics network, allowing sellers to drop off items at nearby stores while buyers collect them from another store location.

This approach dramatically reduced delivery friction and improved user convenience.

SOLVING BULKY ITEM DELIVERY

Another area of innovation focused on bulky goods such as furniture.

These items present complex logistical challenges because they often require disassembly, transportation, and reassembly at the destination.

To address this, Carousell partnered with logistics providers to offer integrated services where drivers and technicians collect, dismantle, transport, and reinstall items in a single end-to-end process.

The service solved a major pain point for users relocating within cities such as Singapore, where high levels of rental turnover create frequent demand for second-hand furniture transactions.

The result has been strong organic adoption and sustained monthly growth.

THE PLAYBOOK FOR SCALING RECOMMERCE

Salunkhe outlined several principles that have guided Carousell’s recommerce logistics strategy:

  • Hyper-local logistics solutions tailored to each market

  • Hybrid delivery networks combining pickup, drop-off and bulky logistics services

  • Competitive pricing that remains accessible for low-value items

  • Removing friction wherever possible across packaging, payments and delivery

The key objective is to balance cost, convenience and trust while maintaining the flexibility required for peer-to-peer transactions.

CIRCULAR COMMERCE AND FUTURE GROWTH

Beyond operational efficiency, recommerce also delivers significant environmental benefits.

According to Carousell research, transactions on the platform in Singapore alone have prevented over 153,000 tonnes of carbon emissions, highlighting the potential sustainability impact of extending product lifecycles.

Looking ahead, Salunkhe believes recommerce will grow significantly faster than traditional retail and eCommerce, driven in part by changing consumer attitudes — particularly among younger generations who prioritise sustainability and value.

As circular commerce continues to mature, platforms that can combine efficient logistics, user trust, and frictionless transactions will be best positioned to scale.

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