Online Sales of Secondhand Goods Outpace Overall Market Growth
The e-commerce landscape is rapidly evolving, and within this dynamic environment, the market for secondhand goods has emerged as a standout performer. Recent data reveals that in 2023, online sellers of used goods saw an impressive 8.0% spike in web sales, surpassing the overall growth rate of 6.9% for the Digital Commerce 360 Top 1000 retailers. This surge indicates a robust demand for pre-owned items amidst a consumer base that is increasingly comfortable with purchasing such goods online.
Secondhand merchandise vendors now comprise 7.9% of the Top 1000, with their presence particularly noticeable in the consumer electronics and hobby goods sectors. Interestingly, this isn’t a trend confined to niche markets. It’s expanding across retail segments, with well-known brands like Ikea venturing into the used-goods marketplace and fashion retailers such as H&M, J. Crew, and Kate Spade partnering with ThredUp to provide a second life to apparel.
The rationale behind this uptick is multifaceted. For consumer electronics, trade-in programs are attractive by offering upgrades, while ensuring older models are still available at accessible prices. In the realms of hobbies and jewelry, collectors often seek out vintage or rare pre-owned items that appreciate over time, adding allure to the secondhand segment for such products.
Categories Where Used Goods Shine
The prevalence of secondhand sales is most apparent among web-only retailers, with close to 10% adapting to this business model. Meanwhile, about 7.1% of consumer brand manufacturers are adding used goods to their catalogs. This shift is indicative not only of an economic incentive but also a response to the growing consumer consciousness regarding sustainability and ethical consumption. By embracing the resale of goods, companies signal their commitment to reducing waste and lessening their environmental impact.
As the secondhand goods market continues to prosper, it offers a glimpse into emerging PIM (Product Information Management) trends. The rise of used goods necessitates systems capable of handling diverse product conditions, varying degrees of information, and unique forms of customer engagement. It calls for PIM platforms to be more agile, efficient, and capable of managing an expanded set of product data. For the broader PIM market, this growth necessitates innovation and adaptability, ensuring systems can support retailers in delivering accurate and detailed product information that caters to the savvy secondhand shopper.
This substantial growth in the secondhand goods business online suggests a shifting tide in consumer buying habits, which could have lasting effects on how PIM systems are designed and utilized. As more companies integrate pre-owned items into their inventories, PIM solutions will need to evolve to address the complexities that accompany the resale market—heightening the importance of transparency, providence, and quality metrics within product information.
Source: Digital Commerce 360
