Circular Economy 🔁

👋 HELLO Loopers!

Greetings from Bali! 🏝️ As a globetrotting entrepreneur, I often think: why buy things we only need temporarily? Why not rent them wherever we go? Right now, I'm really missing my monitor 🖥️ for optimal work vibes. Circularity isn't just flexible, it's also eco-friendly by reusing products and giving them a longer life. Today's newsletter dives deep into this concept, so let's dive in and explore together!

We’re covering:

Society is evolving, and today, we are increasingly concerned about sustainability and the impact of our shopping choices. This growing awareness is reshaping the business landscape, with more companies embracing a shift towards a circular economy. This model aims to minimize waste and maximize the value of resources throughout their entire lifecycle. ♻️ 

Here are some innovative ways to integrate circular practices into your business:

🌱 Sustainable Sourcing: Opt for eco-friendly materials from the get-go to minimize environmental impact.

🛍️ Personalization: Offer customizable products to meet specific needs, reducing unnecessary consumption.

♻️ Recycling: Reuse materials and components to craft new products, effectively minimizing waste and reducing environmental impact.

🔄 Product-as-a-Service: Launch rental and subscription models moving away from a throwaway culture.

👕Second-Hand: Promote a market for pre-loved goods to extend product lifecycles and reduce waste.

Understanding the concept of a circular economy allows you to set it as a goal, guiding every business decision you make to bring you one step closer to achieving it.

Need help integrating circular practices? Here are innovative solutions driving the transformation!! 🔥🔥 

👗 Max Retail specializes in facilitating the buying and selling of excess inventory for fashion businesses. Through an online marketplace, Max Retail connects retailers, brands, and wholesalers, enabling efficient liquidation of surplus goods. This approach not only helps companies recover value from unsold items but also promotes sustainable inventory management by reducing waste and optimizing supply chains.

🛋️ComebackGoods: simplifies the management and resale of unsold inventory and returned goods for home goods retailers and brands. By connecting sellers with buyers interested in discounted merchandise, they streamline the resale process with detailed listings and secure transactions, effectively reducing waste in the supply chain.

💻 Sharpei: is the recommerce platform trusted by leading brands and retailers to effortlessly launch subscriptions, buybacks, or rentals. By creating circular revenue streams, they help businesses maximize product utilization and reduce waste.

💰 Ergo: transforms pricing strategies for Shopify e-commerce products by enabling customers to suggest their ideal prices. Leveraging AI and personalized pricing, Ergo helps businesses maximize earnings and reduce stock with tailored prices. In a past edition of Loop Commerce we had a chance to speak with Claire, the founder of Ergo. Read all about her insights here.

This week, I'm thrilled to feature my friend and co-founder, Lucia Clifford, who serves as the CTO of Sharpei. We founded Sharpei with a vision to offer more flexible and sustainable shopping options, and our journey has brought us to where we are today. Let’s hear our story in her own words:

What inspired you to start Sharpei, and what goals do you have for the future of the company?

L: Starting Sharpei stemmed from a key observation while at Yakk (our previous company): Major retailers wanted to offer rental services while controlling the customer experience. They sought a way to launch circular economy initiatives independently. This inspired us to create the technology enabling retailers to manage their own recommerce programs effectively.

Our goal at Sharpei is to empower retailers in adopting circular business models. We provide the technology and infrastructure needed for successful recommerce, helping retailers create new revenue streams and strengthen customer relationships directly.

What are some of the biggest technical challenges you’ve faced in developing and maintaining a recommerce platform, and how have you overcome them?

L: Developing a recommerce platform has been no easy feat. One of our biggest headaches was figuring out how to start small. With so many moving parts in our business, creating a basic version of our platform was impossible. As a result, it took a whole year to launch our first product.

Also, we didn't have any similar platforms to look at for inspiration, so we had to map out every single process from scratch. Probably the toughest challenge was connecting with all those different online stores like Shopify, WooCommerce, and the rest. Each one works in its own unique way, which made it really difficult to make them all play nice together. But we persevered and figured out how to make it work. By deeply understanding each platform, we built strong connections. This journey has taught us a lot about the complexities of the e-commerce world.

How do you see the future of recommerce evolving?

L: As consumers increasingly prioritize sustainability, recommerce will become more commonplace as a way to extend the lifecycle of products and reduce waste. Also, I believe there will be a shift towards more personalized recommerce experiences, where AI and data analytics will help optimize pricing, inventory management, and customer engagement.

What advice would you give to aspiring entrepreneurs wanting to start a Circular Economy tech company like Sharpei?

L: Aspiring entrepreneurs should deeply understand the circular economy, build strong partnerships, and prioritize scalability and user experience. Investing in data, analytics, and sustainability is crucial, as is assembling a talented team and securing funding. Remaining agile, adaptable, and focused on creating a positive impact will be key to long-term success. Crucially, being a user yourself will provide invaluable insights into the challenges and pain points of the processes involved, enabling you to develop solutions that truly resonate with your target audience.

Climate 🌎 Happy Hour: join this event to discuss and drive innovations towards a more sustainable future. Meet with other investors, SkyDeck founders, advisors and other key professionals to discuss the latest innovations in sustainability and climate tech.  August 7, 2024 - San Francisco, USA

August Meet Up - Climate: join this monthly meetup in Austin for climate innovators to connect, share ideas, ask for help and offer to help in exchange. August 21, 2024 - Austin, USA

Are you passionate about sustainability and looking for your dream job? Here are a couple of exciting options:

• Sustainability Advisor at EY

• ESG Analyst at Revlon

• Circularity & Sustainability Analyst at ASOS

• Sustainability Manager at Accenture

Feel free to reply to this email if you'd like to showcase your events or if you'd like to be featured in the Loop Commerce community!

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Until next week!! 🤠 

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