There’s no denying that the pandemic has definitely put a downward pressure on discretionary spending for the majority of people around the world. The recent growth in the second-hand market is largely driven by the collision between challenging economic times and the continued increase of an environmentally conscious consumer base.
The pandemic has accelerated what was already going to be true over the next few years, making the second-hand market big business. Let me lay out some massive proof points from Kijiji’s most recent Second-Hand Economy Index Report:
- Canadians have earned an average of $961 and saved an average of $723 each year over the past five years through second-hand items. This translates to more than $8,400 in earnings and savings.
- The top 10% of users of the second-hand economy – those transacting the most goods – are developing the commercial market for second-hand goods. On average, these top users deal with nearly 500 items per year, six times more than the national average.
- Young people (age 45 and under) are the most active generation within the second-hand economy, with 88% participation (compared with the 82% national average) and 100 items exchanged per year.
One thing that fascinates me is what the average Canadian does with savings and earnings from second-hand items. Check this out:
Top uses of SAVINGS from buying second-hand goods:
- Make an everyday purchase: 43%
- Put it in the bank: 24%
- Pay off debt: 10%
Top uses of PROFITS made by selling second-hand goods:
- Make an everyday purchase: 40%
- Put it in the bank: 29%
- Pay off debt: 11%
The second-hand economy is fascinating, booming and has the power to reduce product waste while circulating significant savings and income within local communities. These are a few reasons why I’ve launched another venture called PAIDE. We’re on a mission to make buying and selling in the second-hand market less sketchy and more complete. We’re not “building in public” (a trend that I question), but we are building a private community of testers that can help us build a flawless tool for buyers and sellers in the second-hand economy. If you’re interested and passionate about providing feedback on the latest technologies, please apply here.
Buyers: What’s one second-hand item you’ve bought and can’t live without?
Sellers: What’s one item you’ve sold on a second-hand marketplace that you regret?