OfferUp® Recommerce Report 2022

NOTE FROM CEO, TODD DUNLAP:

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OfferUp® Recommerce Report 2022

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.

Key Findings

82%

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

93%

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.

76%

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.

80%

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 in prior years. A staggering 82%, or 272 million Americans, now buy and/or sell secondhand — about the same number of Americans own a smartphone.1

GlobalData 2022 Market Sizing and Growth Estimates
© OfferUp, Inc. 2022

Given 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. This is both faster than pre-pandemic and overall retail market growth.

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 in prior years. A staggering 82%, or 272 million Americans, now buy and/or sell secondhand — about the same number of Americans own a smartphone.1

GlobalData 2022 Market Sizing and Growth Estimates
© OfferUp, Inc. 2022

Given 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. This is both faster than pre-pandemic and overall retail market growth.

GlobalData 2022 Market Sizing and Growth Estimates
© OfferUp, Inc. 2022

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

51%

The Hunt for a Bargain

40%

Easy Passive Income

21%

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

76%

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%

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.

51%

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%

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

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