OfferUp® Recommerce Report 2022

Holiday Update

NOTE FROM CEO, TODD DUNLAP:

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NOTE FROM CEO, TODD DUNLAP:

Vestibulum id ligula porta felis euismod semper. Morbi leo risus, porta ac consectetur ac, vestibulum at eros. Aenean eu leo quam. Pellentesque ornare sem vestibulum.

When we first debuted the OfferUp Recommerce Report in 2019, the goal was to provide a yearly look into how recommerce has changed Americans lives. As we enter our fourth year of publishing this study, it’s clearer than ever that the opposite is also true – America’s obsession with buying and selling pre-owned items has created an industry that is growing faster than traditional retail, with no signs of slowing down.

This 2022 report finds that recommerce grew nearly 15% in 2021, marking the highest rate of growth in history for the industry. What’s more, participation on recommerce marketplace apps continues to grow, as Americans spend an average of 27 minutes per day on recommerce marketplaces, which is just shy of the 30 minutes per day spent on Instagram, Facebook, and Snapchat.

We interviewed a representative set of Americans and found that they don’t plan on slowing down. In fact, more than half (58%) of Americans who engage in recommerce plan to increase their buying and/or selling of pre-owned goods in the next 12 months.

And while recommerce has become popular in culture with its use for clothing resale, our research found that 76% of items bought and sold pre-owned are not apparel and instead fall into the categories of electronics, furniture, home goods, home improvement, sporting goods, outdoor equipment and auto parts.

OfferUp is the largest mobile marketplace for local buyers and sellers in the U.S., and we are still growing at a rapid pace. We’ve seen healthy activity in items posted and sold across our major categories, including autos, electronics, furniture, tools and more.

The growth of recommerce shows us the potential we’ve always known at OfferUp — the future of recommerce is bright.

Todd Dunlap
CEO, OfferUp

Key Findings

0%

of Americans buy and sell secondhand goods, and the majority prefer to use online recommerce marketplaces as opposed to in-store options.

0%

of Americans say inflation impacts their decision to buy and sell secondhand goods, with an increasing emphasis on making and saving money accelerating the growth of recommerce.

0%

of goods sold through recommerce are in categories such as electronics, furniture and home goods, home improvement, sporting and outdoor equipment, and auto parts. In fact, apparel makes up only 24% of the total recommerce market.

0%

growth is expected for the recommerce economy in the next 5 years. The recommerce market is projected to reach $289B by 2027 and grow 5x faster than the overall retail market.

Recommerce Experiences Record High Growth in 2021

Recommerce has been on the rise for years, driven by consumer and market trends such as sustainable shopping, a growing interest in side hustles, and more recently, pandemic-driven supply chain shortages.

With all these factors at play, 2021 marked the highest rate of growth in history for the recommerce market, growing 14.65%, more than double the rate of prior years. A staggering 82%, or 272 million Americans, now buy and/or sell secondhand — which is nearly the same number of Americans who own a smartphone.1

Taking into account the historic growth of the recommerce market and the rising impacts of inflation, recommerce spending is expected to hit $178 billion in 2022. By 2027, recommerce is projected to grow by 80% and hit $289 billion.

Market Factors Point to a Meteoric Rise for Recommerce in the Years Ahead

With inflation hitting record highs in 20222, recommerce is projected to experience even greater increases in the years ahead. Our 2022 consumer survey reveals 58% of Americans plan to increase buying and selling secondhand in the next 12 months.

93%

of Americans say inflation impacted their decision to shop recommerce in the past 12 months

Market Factors Point to a Meteoric Rise For Recommerce in the Years Ahead

With inflation hitting record highs in 20222, recommerce is projected to experience even greater increases in the years ahead. Our 2022 consumer survey reveals 58% of Americans plan to increase buying and selling secondhand in the next 12 months.

93%

of Americans say inflation impacted their decision to shop recommerce in the past 12 months

As Prices Rise, Americans Are 2x More Likely to Prioritize Making & Saving Money Over Sustainability

Top 3 Reasons Consumers Use Recommerce

0%

The Hunt for a Bargain

0%

Easy Passive Income

0%

Reduce Carbon Footprint

Secondhand Becomes First Choice – Shoppers Turn to Recommerce for Anything and Everything

Shoppers are turning to recommerce to purchase both essentials and non-essentials. In fact, most shoppers today turn to recommerce before retail:

63% of shoppers always or often check secondhand buying options before purchasing items brand new

0%
0%

GlobalData 2022 Market Sizing and Growth Estimates

of recommerce happens in categories outside of apparel such as electronics, furniture, home goods, home improvement, sporting goods, outdoor equipment, and auto parts.

Secondhand Becomes First Choice – Shoppers Turn to Recommerce for Anything and Everything

Shoppers are turning to recommerce to purchase both essentials and non-essentials. In fact, most shoppers today turn to recommerce before retail:

63% of shoppers always or often check secondhand buying options before purchasing items brand new

76%

0%

GlobalData 2022 Market Sizing and Growth Estimates

of recommerce happens in categories outside of apparel such as electronics, furniture, home goods, home improvement, sporting goods, outdoor equipment, and auto parts.

In 2022, Americans Spend as Much Time Shopping Recommerce Online as They Do Browsing Social Media

Online shopping has made recommerce more accessible. 61% of shoppers choose to shop secondhand via online recommerce marketplaces while only 39% shop secondhand in-store. But recommerce is more than just a shopping preference, it has become a part consumers’ daily lifestyles. Americans spend an average of 27 minutes per day on recommerce marketplaces, which is just shy of the 30 minutes per day spent on Instagram, Facebook, and Snapchat.4

Americans Lean on Recommerce as a Source of Income Amid Mounting Recession Fears

Americans are creating new income streams with easy-to-use recommerce apps. Alongside mounting fears of a recession and pressures on finances caused by inflation, 2 in 5 Americans report that selling secondhand items has become a source of primary or secondary income, a trend that is particularly high among Gen Z and Millennials.

25%

of Americans say recommerce became a trusted secondary source of income over the last 12 months

Gen Z 32%
Millennial 29%

16%

of Americans say recommerce became a primary source of income over the last 12 months

Gen Z 13%
Millennial 19%

This Year, Americans
are Gifting More
Pre-Owned Items
than Ever Before

Amid inflation challenges, cost-of-living increases, and concerns around retail availability, more Americans are showing an increased willingness to buy and receive pre-owned holiday gifts in 2022.

0%
of Americans are considering purchasing a pre-owned holiday gift
0%
of Americans are considering purchasing a pre-owned holiday gift
0%
are open to receiving a pre-owned holiday gift
0%
are open to receiving a pre-owned holiday gift
Reasons holiday shoppers are turning to resale:
To avoid inflated prices 51%
To find out-of-stock gifts 29%
To avoid shipping delays 27%
To avoid the stress of shopping in-store 26%

As wallets tighten, the stigma around pre-owned is decreasing. Compared to 2021:

0%

are more open to giving pre-owned gifts

0%

are more open to receiving a pre-owned gift

0%

of Americans agree gifting pre-owned items is more socially acceptable than ever before

Methodology

The OfferUp Recommerce Report includes research and data from retail analytics firm GlobalData. GlobalData uses consumer surveys, retailer tracking, official data, data sharing, store observation and secondary sources to analyze, model and calculate metrics including market and channel size, and market share.

Third-party online market research company Pollfish conducted a May 2022 survey of 2,000 U.S. adults.

Additional data sources include internal OfferUp community data and independent secondary research.

Online market research provider Pollfish conducted a May 2022 survey of 2,000 U.S. adults, asking specific questions about their recommerce buying and selling behaviors. Pollfish also surveyed 2,000 U.S. adults in October 2022 to gather their opinions and preferences on buying and receiving pre-owned holiday gifts.

SOURCES
1 Pew Research Center, Mobile Fact Sheet
2 U.S. Bureau of Labor Statistics, Consumer Price Index Summary
3 OfferUp, 2021 Recommerce Report & 2020 Recommerce Report
4 Statista, Average time spent per day on select social media platforms in the United States

© OfferUp, Inc. 2022

Methodology

The OfferUp Recommerce Report includes research and data from retail analytics firm GlobalData. GlobalData uses consumer surveys, retailer tracking, official data, data sharing, store observation and secondary sources to analyze, model and calculate metrics including market and channel size, and market share.

Third-party online market research company Pollfish conducted a May 2022 survey of 2,000 U.S. adults.

Additional data sources include internal OfferUp community data and independent secondary research.

SOURCES
1 Pew Research Center, Mobile Fact Sheet
2 U.S. Bureau of Labor Statistics, Consumer Price Index Summary
3 OfferUp, 2021 Recommerce Report & 2020 Recommerce Report
4 Statista, Average time spent per day on select social media platforms in the United States

© OfferUp, Inc. 2022

Methodology

The OfferUp Recommerce Report includes research and data from retail analytics firm GlobalData. GlobalData uses consumer surveys, retailer tracking, official data, data sharing, store observation and secondary sources to analyze, model and calculate metrics including market and channel size, and market share.

Third-party online market research company Pollfish conducted a May 2022 survey of 2,000 U.S. adults.

Additional data sources include internal OfferUp community data and independent secondary research.

Online market research provider Pollfish conducted a May 2022 survey of 2,000 U.S. adults, asking specific questions about their recommerce buying and selling behaviors. Pollfish also surveyed 2,000 U.S. adults in October 2022 to gather their opinions and preferences on buying and receiving pre-owned holiday gifts.

SOURCES
1 Pew Research Center, Mobile Fact Sheet
2 U.S. Bureau of Labor Statistics, Consumer Price Index Summary
3 OfferUp, 2021 Recommerce Report & 2020 Recommerce Report
4 Statista, Average time spent per day on select social media platforms in the United States

© OfferUp, Inc. 2022

Methodology

The OfferUp Recommerce Report includes research and data from retail analytics firm GlobalData. GlobalData uses consumer surveys, retailer tracking, official data, data sharing, store observation and secondary sources to analyze, model and calculate metrics including market and channel size, and market share.

Third-party online market research company Pollfish conducted a May 2022 survey of 2,000 U.S. adults.

Additional data sources include internal OfferUp community data and independent secondary research.

SOURCES
1 Pew Research Center, Mobile Fact Sheet
2 U.S. Bureau of Labor Statistics, Consumer Price Index Summary
3 OfferUp, 2021 Recommerce Report & 2020 Recommerce Report
4 Statista, Average time spent per day on select social media platforms in the United States

© OfferUp, Inc. 2022