In the world of recommerce, the efficiency of your "intake engine"—the process of receiving, inspecting, grading, and listing items—is the primary determinant of scalability and profit margins. Operational strategy must shift depending on the unit economics of the inventory being processed.
For merchants dealing in low-value items (valued in the tens of dollars), speed is the only metric that matters. Processing three to four items per hour per employee creates a bottleneck that makes profitability nearly impossible at scale. To turn low-value resale from a side hustle into a primary revenue driver, businesses must leverage AI and digitization to process tens or hundreds of items per hour.
Conversely, when dealing with high-value inventory (hundreds or thousands of dollars), the focus shifts from raw speed to precision. A well-tuned inspection and grading process ensures that maximum value is captured from every single SKU.
TWICE Commerce provides the infrastructure to build these efficient workflows. As a Recommerce OS, TWICE offers serialized inventory management and order management systems designed to streamline the circular economy, allowing merchants to focus on growth rather than operational bottlenecks.
Tuomo: If you're reselling very low-value items, your intake engine needs to be faster and faster and faster. This means that you need technologies like AI or other solutions to allow an individual to be able to take in rather tens or hundreds of items in an hour than a few items.
If you're buying in items that are valued in hundreds or even thousands of dollars, then you'll probably want to take a little fewer items and make sure that you have a very well-tuned inspection and grading process. There is money to be made in each percentage of improvement that you can have in your intake engine.
But I think it's fair to say that if you're dealing with, let's say, items that are valued in tens of dollars, and then if your intake engine can take in, let's say, three items or four items per individual per hour, you're likely in a place where it's very hard to make it into a very profitable business.
It can work as a side hustle or a side revenue stream, but if you want to scale that to be a big revenue driver and margin driver, you probably need solutions and digitalization on your intake engine to help you process the supply faster.