How SWAP is building a re-commerce marketplace in BD

More than ever, consumers are enthusiastic about the idea of recycling and reusing products.
Thanks to second-hand buying and selling, the re-use retail sector has prospered over the past few decades. Online merchants are entering the well-liked digital secondhand market, also known as re-commerce, as they are aware of the trend of selling used goods. SWAP is establishing itself as the top recommerce vertical and driving online resales.
SWAP is the combination of e-commerce and re-commerce marketplace in Bangladesh where users can buy anything through customised orders as well as sell their extra or surplus goods, including smartphones, computers, appliances, cars, and other items, and swap items as well.
The platform offers customers ease and safety while offering the guaranteed sale of used goods from their doorsteps in less than 24 hours, which solves the problem. Additionally, it offers customers a way to properly dispose of their e-waste.
The reverse commerce strategy, or selling previously owned, new, or used goods like electronic gadgets or media like books through physical or online distribution channels to purchasers who repair, if necessary, then reuse, recycle, or resell them, is the foundation of SWAP, which was launched in 2020.
Parvez Hossain, chief executive officer (CEO) and co-founder of SWAP, tells his story of starting SWAP, the journey of which actually started during his undergrad days at the Institute of Business Administration (IBA), Dhaka University. "Buying a laptop 20 years ago was not easy, it cost over Tk 0.1 million. Hence I along with my friends bought a laptop collectively. I would save up during my university to upgrade or exchange my handset." Parvez joined British American Tobacco after his graduation and later initiated Livewire. While working in Livewire, Parvez realised that the demand for second hand bikes and cars was also high. Hence, the idea of SWAP came up.
When asked about how Parvez deals with competition, he said, "Other similar platforms follow the P2P or C2C business model, where the selling procedure is uncertain. However, SWAP is the C2B marketplace where we connect the consumers to the businesses. The pricing is transparent, our people also go to the customers’ homes and offices, and the money is transferred instantly."
SWAP received an overwhelming response during Covid-19 because many consumers had products lying around and they could sell it off through the platform, which also aided them with extra cash. SWAP also onboarded many companies like Samsung, where consumers can exchange their current phone for a brand new phone. SWAP has many programmes, such as special exchange programmes for the employees of startups and corporations. SWAP also purchases the surplus products of the companies and gives them the opportunity to exchange them for new ones as part of the B2B model.
When asked about the culture in SWAP, Parvez said, "We have a very flat culture, and I see my team as my family. We work on building team bonding, and we have a helping attitude towards each other." We spend a chunk of time in the workplace, so having a good workplace is important.
Till date, SWAP reached up to $3.0 million per month gross merchandise value (GMV) and Tk 25 million in revenue per month. Parvez said, "We are working on a sustainable business and attracting investors going forward."
SWAP has secured $1.25 million in seed funding, which was provided by Accelerating Asia, ZA Capital Advisory, Bangladesh Angels, and angel investors from Southeast Asia.
Additionally, an agreement between Startup Bangladesh and SWAP to secure the Tk 50 million Pre-Series A round finance was inked on November 16, 2022.
Around the globe, re-commerce is still a growing sector, and selling used goods is becoming more and more common. However, there are also some demographic trends to be aware of, particularly because sustainability is one of the selling aspects of re-commerce. 75 billion euros were spent on the European re-commerce market in 2021. Cross-Border Commerce Europe predicts a 60 per cent increase to 120 billion euros by 2025. One very popular re-commerce platform is eBay. The selling of used, reconditioned, and repurposed goods have long been a significant component of eBay, making it the largest marketplace for re-commerce.
Parvez concluded with some advices for young readers. He said, "Build your confidence, never give up, learn from your mistakes, and up your skill."
In a word, SWAP is the only digital platform in the nation that offers customers special privileges while enabling secure, hassle-free, and haggle-free buying, selling, or exchanging. People from many walks of life are embracing re-commerce, whether it is due to environmentalism, thriftiness, or just a love of vintage.

The writer is a startup enthusiast and a business analyst at Selise Digital Platforms.
humaira.afreen@hotmail.com