The Second Hand Economy Grew By A Staggering $10 Billion In The Last Year

The Second Hand Economy Grew By A Staggering $10 Billion In The Last Year
SHARE
THIS



New research commissioned by Gumtree reveals the Second Hand Economy is now worth a staggering $40 billion dollars, a rise of more than $10 billion compared to 2015.

The Second Hand Economy Report[1], commissioned annually by leading community online marketplace Gumtree, highlights the financial benefit of accessing the second hand economy market. The research reveals selling unwanted items online means more than just pocket money and shows that many savvy Australians are tapping into the second hand economy market and boosting their incomes.

The report indicates that this substantial rise in the second hand economy is largely driven by the 89 per cent of people who are holding onto an average of 25 unnecessary items per household – equating to a value of more than $5,200. This is an increase of nearly $1,000 than last year.

Gumtree_Second Hand Economy_Infographic

Plenty of Australians are reaping the rewards of the second hand economy rather than letting their unwanted goods collect dust, with 84 million used goods sold in the last 12 months. The report suggests that the estimated value of the untapped second hand selling market is now reportedly more than $26 billion dollars. 62 per cent of Australians recognise second hand via an online marketplace do so to save money.

As 90  per cent of people have already purchased at least one second hand item at some stage, Gumtree is encouraging more Australians to tap into this market with buyers reporting savings of almost 50 per cent, on average.

Dr Rebecca Valenzuela, from the Department of Economics at Monash University said that the reported growth in participation and volume of exchanges is a clear indicator that the second hand goods market in Australia is a booming industry. “Sites like Gumtree are quickly becoming an important channel through which Australian households can relieve financial strain, increase their consumption options and/or afford some goods that are otherwise out of reach.

” It makes sense for Australians to tap into this resource especially with, on average, $5200 worth of unwanted items per household which could be sold and help clear debt and free up their hard-earned money for other things like family holidays, sports club dues or violin fees for their 7-year-old protégé. In addition to making some extra cash, buyers and sellers in this market feel proud to ‘do their bit’ for the environment through the second hand economy, while others enjoy the interaction and gaining a positive social experience in the process.”

38 per cent of those who sold unwanted items in the past year, did so to combat the rise in the cost of living, service a debt or pay their rent. The report suggests that more than half (56 per cent) of Australians have sold second hand goods in the last year. This also presents a great opportunity for Australians in the market for a more affordable option; particularly when it comes to clothing, shoes and accessories, which are the most common unwanted items. When it comes to second hand shopping habits, the report indicates that Australians prefer to buy second hand books (39 per cent), collectibles and antiques (27 per cent), homewares and furniture (25 per cent) and vehicle accessories (24 per cent).

Australians recognise that buying second hand items for the home has financial benefits, particularly when the money is put away for a holiday (52 per cent), cover living expenses (45 per cent) and reduce their personal debt (29 per cent).

Kirsty Dunn, Spokesperson for Gumtree said, “It is clear that many Australians recognise the value of their second hand items. Gumtree has more than 2.5[2] million live listings across hundreds of categories and on average, almost 30 per cent [3]of these are listed as ‘new’.

“Interestingly, of those Australians surveyed, only 1 per cent associated the term ‘second hand’ with items that are brand new with tags, so we see great opportunity to change perceptions of what ‘second hand’ is and to reinforce the value sites like Gumtree can bring to a smarter way of living. Over the past year more than one million Australians sold second hand items online for the first time, so it’s no wonder Gumtree attracts more than seven million Australians to the site each month.[4].”

[1] Gumtree commissioned Second Hand Economy Report, by Galaxy Research, August 2016

[2] Gumtree data Sept 2016

[3] Gumtree data August 2016

[4] Nielsen Digital data July 2016

Please login with linkedin to comment

Latest News

Case Study: How Content Helped Tribal Marketing Come To Life Amongst Rev-Heads.
  • Opinion

Case Study: How Content Helped Tribal Marketing Come To Life Amongst Rev-Heads.

In this guest post, CEO of content marketing agency Edge, Fergus Stoddart (pictured below), says brands would do well to play on their customer’s loyal tribalism… Normally over Christmas, any downtime is spent asleep on the sofa, mildly lubricated with a belly full. This year, with the Ashes in the background, I managed to stay awake […]

Opinion

by B&T Magazine

B&T Magazine
Red Bull Holden Racing Team Unveils 2018 Cars On Sydney Harbour
  • Marketing

Red Bull Holden Racing Team Unveils 2018 Cars On Sydney Harbour

Red Bull Holden Racing team took the covers off its 2018 Holden Commodore Supercar today. Floating on a barge in Farm Cove, the harbour provided a stunning backdrop for the reveal. Teammates Jamie Whincup and Shane van Gisbergen have won the past two championships for the squad. Whincup, now the greatest of all time with seven Supercar’s titles, […]

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency
  • Advertising
  • Campaigns
  • Technology

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency

As part of its summer fire campaign, the Victorian government has launched a virtual reality (VR) bushfire experience and content series via The Fuel Agency. The VR experience places the user in the midst of a large bushfire, and is designed to encourage people to leave early on high-risk days before it’s too late. The […]

Local Ad Tech Company VeNA Partners With RugbyPass
  • Advertising
  • Media
  • Technology

Local Ad Tech Company VeNA Partners With RugbyPass

ad tech company VeNA has signed an exclusive reseller partnership covering Australia and New Zealand with digital rugby network RugbyPass. Across Asia and parts of Europe, RugbyPass is the exclusive digital rights holder and over-the-top broadcaster for live rugby, including the Super Rugby, the Rugby Championship and autumn internationals, the Six Nations, the Aviva Premiership, […]

SpotX Appoints Gavin Buxton As Asia MD
  • Advertising

SpotX Appoints Gavin Buxton As Asia MD

Video advertising platform SpotX has announced it has appointed Gavin Buxton as managing director of Asia to lead the company’s expansion in the region. Buxton has over 17 years’ global experience in the digital advertising space, having worked in leadership roles at tech and publishing companies, including Microsoft, Turner Broadcasting, and LinkedIn, with the last […]

Big Mobile Doubles Down On Ad Tech & Rebrands
  • Advertising
  • Technology

Big Mobile Doubles Down On Ad Tech & Rebrands

B&T Awards 2017 finalist Big Mobile has unveiled a fresh look to reflect its new ad tech credentials. The company successfully pivoted its business from ad network to mobile ad tech vendor when it announced a joint venture (JV) with Widespace in October last year. As a result of the business changes, Big Mobile wanted […]

March One Appoints New Senior Account Manager
  • Advertising

March One Appoints New Senior Account Manager

Independent ad agency March One has appointed a fresh face to the team, with Melanie Tozer to reinforce its mission to put humans first as a senior account manager. Tozer (pictured above), an up-and-coming talent from New Zealand, will align her extensive experience in FMCG marketing with March One, having worked on accounts for Bunnings […]