Recommerce on the rise… Suddenly that 2012 Volvo in your garage and the vintage dress in your closet are looking valuable. As inflation continues to strain wallets, more consumers are buying goods secondhand.
- Growth is booming: The US’s secondhand market is expected to more than double by 2026.
- Used = mainstream: More than three-quarters of Americans say they buy or sell secondhand products.
- Overstock opportunity: Liquidators are taking piles of unsold inventory from retailers like Target and Walmart and offloading it to resellers, boosting secondhand supply.
Pre-worn, low-rise Levi’s… Secondhand shopping became popular with sustainable Gen Z shoppers on social-friendly marketplaces like The RealReal, ThredUp, and Poshmark. The fashion resale industry is forecast to double to $77B in the next five years. But thanks to #flation, young shoppers are beginning to buy other products secondhand too:
- Used everything: Secondhand marketplace OfferUp says that non-clothing categories like electronics, furniture, sporting goods, and auto parts make up 76% of its sales.
- High tech, low cost: This month DoorDash partnered with Facebook Marketplace to deliver resale products. Uber launched a similar program last year with Mercari.
Recommerce is a “flation flourisher”… Inflation boosts recommerce by encouraging thrifty shoppers to buy and sell used items. But traditional retailers are also placing big bets on resale, which could push more consumers into the secondhand economy. Macy’s, Walmart, Gap, Adidas, Everlane, and Crocs have all struck “resale as a service” partnerships with ThredUp (think: ecomm portals). Buzzy brands like Lululemon, Levi’s, and Ikea have even launched their own resale programs.