OfferUp, the renowned U.S. mobile marketplace, has unveiled its fifth annual Recommerce Report, a comprehensive overview of the evolving secondhand shopping landscape. Collaborating with data analytics firm GlobalData, the report sheds light on a transformative shift as 85% of consumers now engage in buying and/or selling pre-owned goods, signifying a 3% increase from the previous year. Notably, 27% of respondents have entered the secondhand market within the past year.
Shattering Stigmas: Recommerce Trends
The stigma attached to secondhand purchases is swiftly eroding, reflecting a significant societal transformation. A staggering 76% of survey participants acknowledged a decrease in the stigma, attributing this change to factors like affordability (57%), changing perceptions of waste (55%), and the expanding array of secondhand options (54%). Additionally, 41% consider secondhand shopping a status symbol, illuminating a broader acceptance of this trend.
Recommerce Market on the Ascendant
This surge in secondhand interest propels the recommerce market to reach an estimated $188.5 billion by the end of 2023. A combination of escalating secondhand engagement and the influx of new participants contributes to this remarkable growth. By 2028, the recommerce market is projected to achieve a staggering $276 billion, surpassing the overall retail market’s growth rate by 4.4%. This upward trajectory anticipates recommerce’s share to encompass 8% of the retail market by 2028, emphasizing a growing preference for secondhand items.
From Apparel to Electronics: A Diverse Trend
While initially rooted in clothing, the secondhand trend has swiftly expanded to encompass diverse categories. Notably, clothing constitutes a mere 23% of recommerce sales, with electronics, furniture, home goods, home improvement, sporting goods, outdoor equipment, and auto parts dominating the remaining 77%.
Value Reigns Supreme in Resale
As economic uncertainty persists, recommerce remains a favored avenue for budget-conscious shoppers. The top drivers for secondhand shopping include securing favorable deals (78%), evading inflation-induced price hikes (58%), and adhering to desired lifestyles within budget limits (34%). Moreover, 47% anticipate increasing secondhand shopping during economic downturns, highlighting recommerce’s resilience in challenging financial climates.
Rising Reselling Significance and Online Preference
Reselling isn’t just a trend but a means of financial support for many. In 2023, recommerce sellers increased by 27% compared to the previous year. A striking 69% of sellers use resale earnings to cover bills and daily expenses, while 39% rely on reselling to meet financial ends.
“With the release of our fifth annual OfferUp Recommerce Report, our excitement around the recommerce industry’s future has never been higher. With millions of new users buying and selling every day, the industry is continuing to experience persistent growth. What’s more, we’re seeing the rising popularity of resale lead to a notable decline in the stigma once attached to buying pre-owned, whether it’s tied to purchasing items for personal use or gift-giving.” – Todd Dunlap, CEO, OfferUp
Thriving in the Digital Era: Online Resale Dominance
Online resale platforms have significantly contributed to the resurgence of secondhand shopping, making it accessible and convenient. Surprisingly, 75% find shopping on resale platforms as convenient as, if not more than, traditional online shopping. Additionally, 47% find it more convenient than social media shopping, while 40% prefer it to physical retail stores. Lower prices, variety, and the thrill of uncovering treasures are the driving forces behind this shift.
TL;DR:
OfferUp’s 2023 Recommerce Report highlights a surge in secondhand shopping, with 85% of consumers embracing pre-owned goods. Reduced stigma, driven by affordability and sustainability, has fueled this trend. The recommerce market is projected to reach $188.5 billion by year-end and $276 billion by 2028. Resale’s significance is growing, and online platforms are preferred due to convenience and cost-effectiveness.
Hi, I’m Oren, founder at BIGINTRO, a content strategy agency that helps B2B companies drive growth. We develop search, social, PR, and content marketing strategies tailored to business goals. I also have a dog named Milo.