One in four Aussies lack confidence making $200+ purchases in next six months: Second-hand purchases grow as consumers feel cost of living squeeze, new survey reveals.
As the cost of living crisis deepens, Australians are significantly altering their shopping habits. New research from ShipStation reveals one in four (26%) Aussies don’t feel confident in their ability to make significant purchases over $200 in the next six months, and only 18% feel very confident.
With Australia’s inflation rate rising 3.8% from June 2023 to June 2024, and the clothing and footwear category up by 3.1% compared to the March 2024 quarter, the survey of 1,000 Australians reveals a shift towards pre-owned, refurbished, or second-hand purchases over new products as Aussies grapple with increasing in living costs. Almost a third (32%) increased their second-hand purchases over the past 12 months, with 70% reporting lower costs are 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,” said David Boyer, ShipStation’s VP and Head of ANZ. “Over the next six months, we can expect to see the second-hand market continue to grow, as consumers prioritise value and affordability.”
Second-hand savings over sustainability
Gen Z and Millennials are spearheading 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.
Contrary to popular belief, saving the planet isn’t the top motive driving Australians to thrift stores. 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%). From vintage clothing to hidden home decor gems, consumers are snagging one-of-a-kind items without stretching dollars.
Almost a third (31%) of consumers say they purchase pre-owned, refurbished, or second-hand items because they can get a higher quality for a lower price. Only 23% of Aussies cite environmental concerns as a primary reason to shop second-hand.
Quality and shipping costs are major pain points
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 of consumer preferences and the rise of recommerce, the power of shipping and returns in shaping purchasing decisions remains undeniable. ShipStation’s research confirms the trends observed in previous years are still holding strong this season. 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 for Australians, 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,” said Boyer. “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.”
