Report: Resale Market To Reach $276 Billion in Five Years

Article From：SGB Media

 

 

OfferUp’s 2023 Recommerce Report found that 85 percent of shoppers buy and/or sell secondhand goods, an increase of 3 percent from 2022. Furthermore, 27 percent of shoppers ventured into the secondhand market for the first time in the last year.

 

The fifth annual report from OfferUp, published in partnership with data analytics firm GlobalData, found that the increasing popularity of secondhand shopping marked a continued transformation in societal attitudes, driven by a decline in the stigma once associated with consumers buying pre-owned items. OfferUp’s survey findings found that 76 percent of respondents noted a decrease in the stigma, primarily attributed to more affordable options (57 percent), changing attitudes towards waste (55 percent) and the increasing availability and variety of secondhand items (54 percent). The survey also found that 41 percent of shoppers view buying secondhand as a status symbol.

 

Resale Shopping’s Rising Appeal Sparks Recommerce Growth

As a result of the growing acceptance of resale, the recommerce market is projected to reach $188.5 billion by the end of 2023, fueled by the increased adoption of secondhand shopping and a continuous influx of new buyers and sellers entering the market. 

 

By 2028, the recommerce market is projected to reach $276 billion, representing a 58 percent growth rate, outpacing the overall retail market by 4.4 percent. By 2028, recommerce is projected to account for 8 percent of the total retail market, reflecting a 2 percent increase compared to 2023, indicating that consumers are increasingly directing their spending toward secondhand products.

 

While secondhand shopping has roots in apparel, the trend has expanded rapidly into various other categories. Clothing accounts for only 23 percent (less than 1 in 4) of the items sold through recommerce, with the remaining 77 percent dominated by categories like electronics, furniture, home goods, home improvement, sporting goods, outdoor equipment, and auto parts.

 

Value Continues to Be The Strongest Driver for Resale

The study found that despite ongoing economic uncertainty, recommerce is a favored option for consumers seeking more budget-friendly purchases. The top three reasons consumers shop secondhand are to get a good deal (78 percent), avoid higher prices due to inflation (58 percent), and maintain a desired lifestyle within budgetary constraints (34 percent). Moreover, 47 percent of shoppers anticipate increasing their frequency of buying and/or selling secondhand items if the economy enters a recession, highlighting the resilience of the recommerce market during challenging economic times.

 

Notably, reselling has also become a means for many consumers to make ends meet. In 2023, there was a 27 percent increase in recommerce sellers compared to the previous year. Overall, 69 percent of sellers have used the money earned from reselling items to pay for bills or everyday living expenses, while 39 percent responded that reselling had helped them make ends meet.

 

Online Resale Platforms Outpacing Retail in Shopper Preference

Online resale platforms have played a significant role in making secondhand shopping in driving adoption. According to the survey, 75 percent of respondents find shopping on resale platforms just as, or more convenient than, traditional online shopping, while 47 percent see them more convenient than shopping through social media platforms. 

 

Moreover, 40 percent find shopping on resale platforms more convenient than brick-and-mortar retail stores. The top reasons cited for choosing online resale platforms over retail shopping are

 

lower prices and cost savings (70 percent),

a wider variety of unique items available (47 percent), and

the opportunity to discover unexpected items (37 percent).

To read the report and methodology, go here.