• Home
  • News
  • Retail
  • Resale value becomes increasingly important to consumers, new report finds

Resale value becomes increasingly important to consumers, new report finds

By Robyn Turk

Feb 27, 2020

Retail

Consumers consider the resale value of items when they shop. According to Poshmark's recent social shopping report, "2020: The Year of Social Shopping," 76 percent of the platform's users think about an item's resale value before purchasing.

Drawing on insights from over 8,000 shoppers surveyed across the U.S. and Canada, the report determined that 92 percent of Poshmark users and 35 percent of non-users would sell an unwanted clothing item when unable to return it online, 92 percent of Poshmark users and 35 percent of non-users would sell it online.

"2019 was a pivotal year for social commerce due to the surging popularity of resale," Poshmark founder and CEO, Manish Chandra, said in a statement. "The retail landscape shifted drastically, as consumers embraced new ways to shop and think about their closets."

Social shopping as a growing phenomenon

Chandra said that in 2020, consumers desire connection, thus "redefining what it means to buy and sell, making social shopping synonymous with retail itself." E-commerce transactions are growing at the peer-to-peer level, with 58 percent of consumers reporting that they are comfortable purchasing items through social media platforms rather than the website of an established brand. In fact, 75 percent of shoppers comfortable purchasing items directly from people online.

According to Poshmark, social shopping democratizes retail, allowing anyone to develop a successful clothing retail business online. The majority of Poshmark sellers live outside of major cities, with 40 percent small to medium-sized cities and 34 percent live in suburbs and rural areas.

The report determined that resale has become more popular than ever before, and across all generations. Gen Z shoppers tend to favor brands including Gucci, Adidas and Brandy Melville on Poshmark, while millennials tend to shop Nike, Madewell and Anthropologie. Baby Boomers are mostly looking for Coach, Michael Kors and Eileen Fisher. Across generations, secondhand clothing makes up an average of 14 percent of consumer closets.

Image: Pexels