Budget-conscious consumers are turning to second-hand products, new survey shows
The survey of U.S. consumers highlights a growing “recommerce revolution.” 31% have increased their second-hand purchases in the past year, with 74% citing lower costs as the primary motivator. Gen Z and Millennials are leading this movement, with 59% and 48% respectively buying pre-owned items weekly or monthly.
“Economic pressures are continuing to reshape consumer behavior, driving a preference for value and affordability,” said Loran Gutt, Vice President of Strategy and Corporate Development at Auctane. “Retailers that want to get ahead of the curve should recognize and adapt to the factors drawing consumers to recommerce: unique finds, potential for higher quality at lower prices, and of course, cost savings. We’ve already seen a surge of retailers embrace recommerce in the past year, and this trend is only set to accelerate.”
Second-hand savings over sustainability
Contrary to popular belief, while important, saving the planet isn’t the top motivator driving Americans to second-hand. Following lower costs, the thrill of finding unique or rare items is the second most common reason for purchasing pre-owned items (38%). Over a quarter (28%) of consumers say they purchase second-hand items because they can get a higher quality for a lower price. Meanwhile, only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Quality and shipping costs are major pain points
Despite the growing popularity of recommerce, some Americans are still hesitant to participate. Quality concerns (46%), difficulty finding desired products (39%), and a lack of trust in sellers (34%) are the primary factors holding consumers back. Notably, Gen Z is most concerned about seller trustworthiness (47%), and Boomers struggle the most with finding desired products (46%).
Beyond recommerce, shipping costs remain a critical factor in consumer decision-making. A significant 70% of surveyed consumers say high shipping costs would deter them from shopping with a retailer.
“In an era where consumers are prioritizing cost savings above all else, the second-hand market represents a strategic opportunity for businesses,” Gutt continues. “Recommerce can capture today’s budget-minded shoppers and foster long-term loyalty, paving the way for future purchases.”
Gutt concludes: “While embracing recommerce as a business model may not be feasible for every business right now, there are valuable lessons here for all retailers. Understanding the generational nuances driving second-hand shopping, prioritizing affordability and transparency, and delivering exceptional customer experiences are crucial for any business looking to thrive today. These principles will resonate with consumers ahead of the peak shopping season whether they’re buying new or pre-loved.”
