Amid cost of living pressures, Australians are significantly altering their shopping habits, shifting towards pre-owned, refurbished, or second-hand purchases over new products, according to new research from ShipStation.
One in four (26%) consumers don’t feel confident in their ability to make significant purchases over $200 in the next six months, and only 18% feel very confident. Almost one-third (32%) increased their second-hand purchases over the past 12 months, with 70% reporting lower costs as the primary motivator.
“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,” ShipStation vice president and head of Australia and New Zealand, David Boyer said.
Gen Z and Millennials are leading the ‘recommerce revolution’, with over half (51%) of Gen Z and two in five (40%) Millennials purchasing pre-owned items weekly or monthly. This compares to just 15% of Boomers.
The thrill of finding unique or rare items is the second most common reason for purchasing these items (42%), beaten only by lower cost (70%). Almost one in three (31%) consumers say they purchase pre-owned, refurbished, or second-hand items because they can get higher quality for a lower price. Only 23% of Australians cite environmental concerns as a primary reason to shop second-hand.
Despite the growing popularity of second-hand shopping, many Australians are still hesitant. Quality concerns (45%) and limited selection (43%) are among the top barriers preventing them from purchasing pre-owned, refurbished, or second-hand items. Interestingly, 37% of consumers say a lack of trust in sellers is holding them back.
When comparing generational preferences, for Gen Z, quality concerns are the primary reason preventing one in two (51%) from purchasing pre-owned, refurbished, or second-hand items. At the other end of the spectrum, Boomers have difficulty finding desired products (57%) but are the most trusting in sellers, with just one in three (32%) citing this as a barrier. This is compared to 43% of Gen Z who lack trust in sellers.
Despite the evolving landscape, the power of shipping and returns in shaping purchasing decisions remains prevalent. ShipStation’s research shows almost two-thirds of Australians (63%) say fast delivery is a top feature they look for when shopping online, followed by reliable tracking (57%). High shipping costs are a major pain point with 70% of consumers saying it would influence their decision to stop shopping with a retailer.
Late deliveries (44%), lack of communication (39%), and poor packaging (36%) are among the other pain points continuing to drive consumers away from retailers.
“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,” Boyer added.