CNN — Savvy consumers have found a way around skyrocketing inflation to keep buying more than just basic necessities.
They do this by buying their closets, homes, outdoor spaces, home offices, and workout areas not from retailers, but from each other.
Large chains such as Walmart, Target and Bed Bath & Beyond are struggling with an oversupply of merchandise and a lack of demand for discretionary items like furniture, electronics, home decor and apparel.
But these are exactly the categories that are in high demand in the used market, according to the fourth annual industry report from OfferUp, a leader in the online resale market.
“While re-commerce has become popular in the culture with its use for the resale of clothing, our research found that 76% of items bought and sold second-hand are not clothing and instead fall under the categories of electronics, furniture, home goods, home improvement, sporting goods, outdoor gear and auto parts,” OfferUp CEO Todd Dunlap said in the report.
Demand for second-hand clothes and other items was already strong as the pandemic approached, with environmentally and budget-conscious Millennials and Gen Z shoppers sparking resale interest. The pandemic has boosted the momentum, and now soaring inflation has boosted it.
The report, produced in conjunction with analytics firm GlobalData, found that 82% of Americans, or some 272 million people, are currently buying or selling used goods. A majority of these consumers said inflation had an impact on their decision to enter the second-hand market, with saving or earning money being the main motivation.
“Inflation is more helpful than harmful for resale because it stimulates the market for both buyers and sellers,” said Neil Saunders, retail analyst and managing director of GlobalData Retail.
“On the buyer side, more and more people are looking second-hand to save money when prices are high. And more and more people are selling their second-hand goods to make some extra cash. “, did he declare. “So inflation expands the number of people involved in the resale market and increases the number of items available.”
Those active in the marketplace spend about 27 minutes a day on resale sites, almost on par with the 30 minutes a day they spend on Instagram, Facebook and Snapchat.
“We surveyed a cross-section of Americans and found they had no plans to slow down,” Dunlap said. “In fact, more than half (58%) of Americans going into recommerce expect to increase their purchases and/or sales of used goods over the next 12 months.”
OfferUp expects the resale market to reach $178 billion in sales in 2022, up from $160 billion a year earlier, and $289 billion in sales by 2027.
The report is based on research by GlobalData and a survey of 2,000 American adults in May 2022.
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