Economic pressures lead Australians to embrace secondhand shopping

New data from e-commerce fulfilment provider ShipStation highlights a growing uncertainty among Australian consumers regarding significant purchases in the near future.

The survey, conducted among 1,000 Australian consumers, indicates that 26% of respondents do not feel confident in making purchases over AUD $200 in the next six months. In contrast, a mere 18% feel very confident in doing so.

ShipStation's study reveals that economic pressures are driving Australians to adjust their shopping habits, with many opting for secondhand purchases as a cost-saving measure. According to the survey, 32% have increased their secondhand purchases over the past year, citing lower costs as the primary motivator.

David Boyer, ShipStation’s VP and Head of ANZ, commented, "The current economic conditions are driving a shift in consumer behaviour, as more Australians opt for less expensive pre-loved items over pricier new purchases. Over the next six months, we can expect to see the second-hand market continue to grow, as consumers prioritise value and affordability."

Younger generations, particularly Gen Z and Millennials, are leading this shift towards secondhand shopping. The survey found that 51% of Gen Z and 40% of Millennials purchase pre-owned items on a weekly or monthly basis, compared to just 15% of Boomers. The primary reasons for this shift include lower costs and the thrill of finding unique items, with 70% and 42% respectively citing these factors as their main motivations.

Interestingly, environmental concerns are not the primary driver for secondhand shopping. Only 23% of respondents indicated that sustainability was a major reason for their choice. Instead, 31% of consumers believe that pre-owned items offer higher quality for a lower price.

Despite the perceived benefits of secondhand shopping, concerns about quality and limited selection persist. Overall, 45% of consumers cited quality concerns and 43% mentioned limited selection as barriers. For Gen Z, quality issues are the most significant concern, with 51% highlighting it as a deterrent. Boomers, on the other hand, struggle with finding desired products, but are more trusting of sellers compared to Gen Z.

The research also sheds light on the importance of shipping and returns in shaping purchasing decisions. According to the survey, 63% of Australians prioritise fast delivery when shopping online, and 57% look for reliable tracking. High shipping costs remain a significant issue, with 70% of consumers indicating that it would influence their decision to stop shopping with a particular retailer. Other issues deterring consumers include late deliveries (44%), lack of communication (39%), and poor packaging (36%).

David Boyer emphasised the importance of a seamless shopping experience in building customer trust and loyalty. "Consumers want affordable, high-quality products delivered quickly. As we head into the peak sales season, it's an opportune time for retailers to start thinking about how they can make the shopping experience as simple and seamless as possible while building trust. By offering clear product descriptions, easy returns, and secure payment options, retailers can reassure customers and encourage repeat purchases."