When buying their holiday gifts this year, new data suggests that 66% of shoppers will turn to resale marketplaces in order to find the right present. With previously-owned products becoming a more desirable option, due to price point and sustainability, retailers and small business owners should consider this channel as a possible revenue stream.
“The resale market is growing so quickly because there is an incredible consumer appetite to find their favorite brands quickly and easily,” said Nick Huzar, CEO at OfferUp. “Today’s shopper is interested in finding value, being more sustainable, and shopping locally. The resale model checks all of these boxes, which is why I think we’re finally starting to see some retailers and brands include resale more directly in their business.”
OfferUp is the fourth most popular shopping app in the U.S., with 20 million monthly active users, and it surveyed nearly 1,400 sellers and buyers about their holiday shopping plans. Due to value (65%), the ability to find rare or discontinued items (43%), and convenience (43%), resale items are an increasingly popular choice for gifts.
Price point is a particular benefit of purchasing second-hand that is playing a big role in decision-making in 2020. OfferUp found that 38% of respondents’ budgets had been negatively impacted as a result of the pandemic and almost 40% believed that purchasing second-hand would help them save between $101-300.
This can be a great way for small brands to attract younger shoppers who may then pay full price when they have more discretionary income. It can also be a useful way for new sellers to establish themselves in the marketplace, as selling online through a resale marketplace can help create personal relationships with buyers. This channel can then ultimately support other revenue streams, such as new product.
“OfferUp is a community driven marketplace, so you don’t need to be a big seller to find success,” said Huzar. “In fact, our most successful sellers all have a few things in common, including the ability to create eye-catching listings with vibrant photos, interesting description details and competitive pricing.”
The intimacy created through peer-to-peer, or small brand-to-consumer, selling also plays into the growing trend to shop local and independently. As consumers look to support those in their community, the appeal of purchasing from another person in the area can fulfil this need while also making delivery more efficient.
For brands, this could be an opportunity to grow bonds within local communities, by partnering directly with resellers. Benefits of a direct-to-resell program also include shifting excess inventory; reducing waste product; and promoting a more sustainable merchandising program, which is another growing interest area for shoppers. OfferUp found that 46% of shoppers would rather buy something reused and environmentally friendly this year than something new and trendy.
“The pandemic has completely changed the way people are shopping: People are relying on resale marketplaces and local businesses to buy the things they need and find great deals,” said Huzar. “This year, we’ve seen an increase in new users, items posted, and items sold on OfferUp. “We’re also seeing people become deeply invested in their communities. They’re looking for ways to support one another during this challenging time, and buying a holiday gift from a local business is an easy way to do that.”