Circle-Hand — ERP and POS Solution for Second-Hand Shops

Circle-Hand is a specialised ERP, merchandise-management and POS software for second-hand, consignment and resale shops. Unlike generic SMB ERP products, Circle-Hand natively maps central industry requirements such as Differenzbesteuerung (margin-scheme VAT under section 25a of the German VAT law / UStG), consignment accounting, individual-item inventory with photos and AI-assisted image recognition. The Berlin-based vendor positions the product as the dedicated vertical ERP for a growing circular-economy retail segment — from vintage boutiques and designer-consignment stores through to children's second-hand shops and online resellers. The product addresses both stationary stores with their own branches and hybrid models that combine a physical shop with online sales via Shopify, Vinted, Depop or a custom webshop. On erp-software.org Circle-Hand is profiled in the vertical-specific ERP category at Tier 2 with solid Mid-Market presence in the niche.

Overview

Behind Circle-Hand stands a Berlin-based software vendor focused entirely on the resale and second-hand market. On industry platforms, in app stores such as Shopify and in software comparison directories Circle-Hand is listed as a German specialised product with German- and English-language interfaces. Close collaboration with resale communities — through reference customers such as InRotation in Berlin — drives continuous product evolution. The architecture deliberately addresses the operational pain points of second-hand retail that generic ERPs handle poorly: each item is individual (no SKU multiplicity), pricing changes frequently based on condition and time on shelf, and the regulatory treatment of margin-scheme VAT is unusual. The product's focus on a single, growing vertical is a clear competitive strength.

Functional sweet spot

Circle-Hand covers the typical processes of a second-hand business in integrated form: goods receipt with AI-assisted image recognition, individual-item inventory, consignment accounting, margin-scheme VAT, point-of-sale (POS) with TSE compliance, warehouse management, label and barcode printing, online synchronisation and a supplier portal. The POS module processes sales according to the requirements of the German Kassensicherungsverordnung (KassenSichV) including the mandatory technical safety device (TSE). Circle-Hand therefore meets the central requirements of GoBD (the German principles for proper digital bookkeeping) and cash-register law, which are mandatory for stationary retail in Germany. A particular strength is the AI image recognition at goods receipt: instead of manually capturing each individual item, staff can take photos and the system proposes brand, category, material, size and condition. Connections to comparison platforms such as Google Shopping, Vinted and Depop additionally provide pricing recommendations.

DACH positioning

Circle-Hand is German-anchored with strong concentration in Germany and growing reach into Austria and Switzerland. The product is built around the specific regulatory environment of German second-hand retail: section 25a UStG margin-scheme VAT, GoBD compliance, the Kassensicherungsverordnung with TSE, DATEV (the German accounting and payroll standard) connectivity and the standard German e-invoicing formats. The vertical positioning is sharp — second-hand retail is a niche that generic German Mid-Market ERPs handle poorly because the per-item individuality and margin-scheme VAT require dedicated workflows. The customer base spans vintage boutiques, designer-consignment stores, children's second-hand shops and online resellers across the DACH region, with typical store size ranging from single-location independents to small chains of 2 to 10 branches.

Pricing and implementation

Circle-Hand pricing is configured per customer rather than published per-user list pricing, reflecting the vertical-specific positioning and the typically small individual customers. Indicative ranges: 100 to 300 euro per month for a single-store cloud deployment with standard scope, scaling to several hundred euros per month for small chains. One-off implementation effort is typically modest (1,500 to 8,000 euro) because the standard product is highly opinionated about second-hand workflows and requires little customisation. Hardware (POS tills, barcode scanners, label printers, TSE devices) is sourced separately and typically adds 2,000 to 4,000 euro per checkout. Total cost of ownership over five years for a typical 3-store second-hand deployment sits in the 30,000 to 80,000 euro range, which is low by ERP standards but appropriate for the small-business target audience.

Selection considerations

Circle-Hand is a strong fit for German-anchored second-hand, consignment and resale businesses that want a vertical ERP that handles margin-scheme VAT, individual-item inventory and TSE-compliant POS out of the box. It is particularly compelling for vintage boutiques, designer-consignment operators and online resellers using Shopify, Vinted or Depop, where the AI image recognition delivers meaningful labour savings at goods receipt. It is less compelling for second-hand operators outside the DACH regulatory perimeter (where the margin-scheme VAT logic is specific to German law), for first-hand retail (where the per-item individuality is not required and standard SKU-based products fit better), or for larger second-hand chains above 20 stores where the platform's scale headroom would need verification through reference checks.

Related Topics

• ERP comparison overview
• ERP
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Vendor homepage of Circle-Hand

Current view of the website https://www.circle-hand.com/