The Secondhand Surge: Millennials and Gen Z are Leading the Charge

At ShipStation, we’re always keeping an eye on emerging trends in the retail landscape. We don’t just wait for peak season; we want to be ahead of the curve. Lately, there’s been a lot of buzz about recommerce – the buying and selling of pre-owned goods –  and we decided to dig deeper. We wanted to know: is secondhand shopping taking off? Why are people choosing pre-loved over brand new? And what consumers are leading the charge?

Our latest survey reveals some fascinating insights. UK consumers are tightening their purse strings thanks to the cost-of-living crisis, and that means more and more people are turning to pre-loved items. In fact, over a third of surveyed UK shoppers buy something secondhand every single month.

Gen Z and Millennials are the driving force behind this secondhand surge, with 58% and 50% respectively shopping pre-loved on a weekly or monthly basis. Turns out, saving money and finding unique gems is a major win for younger generations.

Key Takeaways:

• Recommerce is Booming: Over a third of surveyed UK consumers are buying secondhand items monthly. 
• Cost is King: 70% of surveyed shoppers choose secondhand for the lower price tag.
• Gen Z and Millennials Rule: Younger shoppers are embracing secondhand shopping like never before. Meanwhile, 27% of Boomers say they never buy second-hand. 
• London Loves Secondhand: Due to increased cost of living, a whopping 88% of Londoners are buying pre-loved, compared to 83% across the rest of the UK. 
• Sustainability Matters: 27% of surveyed shoppers consider the environmental impact when buying secondhand.
• Quality Concerns Linger: Concerns about quality remain a barrier for recommerce adoption, especially for Boomers (53%), but it’s also an issue for Millennials (48%) and Gen Z (51%).
• Difficulty Finding Desired Products: Boomers struggle the most (46%) with finding what they want secondhand, compared to Gen Z (35%) and Millennials (40%).

What This Means for Retailers

You don’t have to sell used goods to capitalise on the secondhand boom.

• Offer Trade-Ins: Give customers a discount for trading in their old items.
• Make Products Last: Build products that are durable and easy to repair.
• Go Green: Show customers you care about sustainability by promoting responsible consumption.
• Nail Customer Service: Happy customers are repeat customers, whether they buy new or used.
• Address Quality Concerns: Clearly communicate product conditions and offer guarantees to alleviate concerns, especially for older generations.
• Improve Product Discoverability: Make it easier for customers to find what they’re looking for online through better search and filtering options.

The Spending Landscape: Homewares, Electronics, and a Touch of Luxury

We also surveyed UK consumer attitudes heading into peak season. Despite economic uncertainties, surveyed consumers are feeling confident about spending in the second half of the year. Gen Z is leading the charge, with 76% feeling somewhat or very confident about making significant purchases. While Boomers are slightly less confident (68%), they’re still ready to spend.

Over half (51%) of surveyed UK consumers are planning to purchase furniture and homeware in the second part of this year, indicating a growing interest in home improvement and interior design. Electronics are also in high demand, followed by health and beauty products. Gen Z is also the generation with the highest number of surveyed consumers (23%) planning to spend on luxury goods in the latter half of the year. 

Shipping: Still the Key to Winning Customers

Before diving too deeply into secondhand shopping, don’t forget the basics. Year over year at ShipStation, we find that shipping and returns make or break a sale, and ahead of peak season, these factors are more important than ever.

Key Findings:

• High Shipping Costs are a Dealbreaker: A significant 71% of surveyed UK consumers  won’t shop with a brand again if shipping is too expensive.
• Late Deliveries are a No-No: Nearly half of surveyed Gen Zers (46%) and Boomers (48%) will ditch a brand after a late delivery.
• Packaging Matters: Over a third of Millennials (36%) and Gen X (35%) won’t return to a brand if the packaging is subpar.

What This Means for Retailers:

• Offer Free or Discounted Shipping: If free shipping isn’t possible due to heightned costs, consider accounting for the price of shipping in the product cost, or offering customers free shipping at a threshold when they meet a specific total cart price.
• Deliver on Time, Every Time: Invest in fast, reliable shipping to keep customers happy. The first step? Streamlining your internal processes and workflows to make order fulfillment as quick and easy as possible. 
• Upgrade Your Packaging: Make sure your packaging is sturdy and presentable. It’s the first impression your product makes.
• Leverage Carrier Partnerships:  Use a range of carriers and shipping classes to meet the diverse needs of your customers – from white glove, next day-shipping to economy. 

Bottom Line

The secondhand market is exploding, and savvy retailers need to adapt. Whether you embrace recommerce directly or focus on top-notch shipping and returns, staying ahead of the curve is essential. Remember, happy customers are loyal customers, and in today’s competitive landscape, that’s more important than ever.