New data from OfferUp shows that resale continues to grow as a value-conscious consumer looks for ways to obtain high-quality pieces on a budget.
The data shows that 35 percent of shoppers tried resale for the first time this year, up 8 percentage points from last year’s figure of 27 percent.
Economic pressure may be driving some consumers toward secondhand shopping, and the data shows it’s also a major reason that one-third of consumers turned to resale for the first time this year. Nearly 60 percent of first-time resale shoppers cited increased cost of living as a reason for their interest in the secondhand market, and just over half said cost savings compared with new items drove them to make purchases.
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Though OfferUp projects that the resale market will grow to be worth nearly $292 billion by 2029, Ken Murphy, OfferUp’s senior vice president of product, said that continued growth will come from retaining the high proportion of shoppers who have purchased items through resale channels.
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With that in mind, Murphy said he’s not worried about a blow to the resale market if the economy gets back on the up-and-up in the coming months or year. He believes that, economic headwinds or not, the industry should still be on track for the rapid growth his company projects in its annual Re-Commerce Report.
“Macroeconomic trends like the COVID-19 pandemic and inflation drove shoppers to seek value in the re-commerce marketplace. Still, our report shows that many other influential trends are driving the growth in secondhand shopping — the thrill of the hunt, declining stigma, higher quality, and more desirable items for your shopping dollar, to name a few — that provide stable drivers for long-term growth. Like the old saying goes, value never goes out of style,” Murphy told WWD sister publication Sourcing Journal.
That may be particularly true in the market for secondhand apparel; six in 10 shoppers said they believe secondhand apparel is usually better quality than items sold in stores today. About seven in 10 consumers said they think stigma around resale has decreased. Murphy said the perception of secondhand items as pieces with value is important to the resale industry’s continued success.
“For re-commerce shoppers, ‘value’ does not mean ‘cheap.’ Many are looking to find higher quality secondhand items for the same or lower price as a less-desirable new item,” he said. “Secondhand shopping is now seen as a high-quality alternative to new, especially in the fashion space, where durability and sustainability are becoming more important.”
A ThredUp report from 2023 shows that if every consumer chose to buy one secondhand apparel item instead of purchasing a brand-new piece, CO2 emissions could decrease by over 2 billion pounds. An increasing number of brands have introduced branded resale platforms.
Today, 58 percent of consumers said they enjoy the process of shopping secondhand more than buying new items, which Murphy said may partly be due to the serendipitous nature of thrifting or shopping secondhand.
“To me, finding that [over half] of respondents say that shopping secondhand is more enjoyable than buying new was somewhat surprising — and very inspiring. It truly drives home the treasure-hunting aspect of resale shopping, where finding that perfect, unique or surprisingly better-than-expected item for a great price strongly resonates with most shoppers.”
To keep consumers captivated, Murphy said, resale platforms like Poshmark, ThredUp, OfferUp and Vinted need to variegate their assortments and offer strong customer service.
“Continuing to drive visibility and awareness is key to capitalizing on today’s consumer environment,” Murphy said. “By showcasing the breadth, quality, and value available on modern re-commerce platforms…and highlighting how consumers can meet their everyday needs by connecting with local users and small businesses, resale companies can continue to drive momentum throughout the industry. Beyond that, fostering trust, convenience and a sense of community will further engage shoppers and position resale as a go-to choice.”