As one of the original pioneers of the sharing economy, Gumtree has released its ninth annual Second Hand Economy Report, revealing that the potential value of peer-to-peer trading in Australia could be worth a staggering $43 billion.
The annual report shows that Australians could stand to make an average of $5,300 per household, with approximately 23 unwanted or unused items laying around the house.
Over the past 12 months, almost 95 million used items changed hands across living rooms and front yards, with Australian adults selling an average of 11 items per head during this period.
Amanda Behre, a spokesperson for Gumtree Australia, says:
“More than half of Australians (57%) have sold second hand items in the last year, and are most likely to spend the extra cash on important things like household expenses (42%). However, many are also leveraging the sharing economy to pay for that holiday (30%) that they might not otherwise be able to afford.”
“For buyers, the second hand economy can be equally as lucrative,” continued, Behre.
“The average Australian estimates that they can save almost half (43%) buying second hand over new, so the Gumtree enabled second hand economy really is a win, win for both buyers and sellers This could be especially important as things look to turn tougher economically.”
Economic uncertainly fueling the second hand economy
Due to economic uncertainty and stagnant wage growth, 73% of survey participants - or the equivalent of 11.4 million Australians - said they were concerned about their ability to pay household expenses such as food and utility bills.
Two fifths (41%) or 6.4 million Australians are also concerned about their ability to pay off items that have been bought using ‘buy-now-pay-later’ options like credit cards, store credit and Afterpay.
“Over a quarter of Australians (28%) say that they’ll most likely spend the money that they make from the second hand economy on helping reduce some of their debt - so leveraged properly, the sharing economy can become a really useful side-hustle to help lighten the load.”
From fridges to fine art – what Aussies want to offload most
According to the report, the main unwanted household items in 2019 are furniture (35%); tools, gardening & DIY (25%); general electrical goods, including phones and PCs (43%); white goods & appliances (22%); collectables & antiques (20%); sports & fitness (34%); clothing, shoes & accessories (62%).
The rise of the conscious consumer
Beyond the money and savings to be made, the 2019 Second Hand Economy Report has shone a light on Australian consumers’ increasing desire to do the right thing by the environment.
Australians estimate they have saved approximately 15 items from ending up in landfill due to selling them through the second hand economy in the last year.
In fact, four in ten Australians (39%) are now concerned about the environmental impact of buying ‘brand new’ products, with women (45%) more likely than men (33%) to be concerned. Millennials are the most concerned age group (44%).
The ‘Marie Kondo effect’
When purchasing items, Australians have moved towards a trend of minimalism as they seek ‘quality over quantity’.
The report reveals Aussies are most likely to associate the term ‘value’ with items that last longer (50%) and items that cost a fraction of what they would cost if bought new (50%), followed by high quality items (38%), trusted brands (31%) and cheaper or low cost items (30%).
Three quarters of Australians (76%) are now making a conscious effort to ‘declutter’ their homes – but as has been indicated by the buying power of the second hand economy, there is always someone who finds value in the unused or unwanted items of others.
