‘Booming demand has spurred the creation of more resale businesses’

Energy bills are at an all-time high. Mortgage rates are soaring. In January the cost of the weekly shop rose at its fastest rate in a decade. There’s one main story in the news and one topic on every shopper’s mind: the cost-of-living squeeze.

Price rises are affecting every retail category in 2022, with furniture prices up by a record 12.5% year on year and food up 2.7% in January this year alone.

With so much change in the air, there’s no surprise that retail will look different in 2022. Naturally, we’ll see customers shift their focus to getting value for money and hunting down a bargain. But what other changes can be expected as shoppers react to rising costs and how should retailers adapt?

Last season’s stock comes back in fashion

As consumers’ cash is pulled in more directions, value for money will take centre stage as shoppers seek out alternative ways to save on the items they need and want.

We’ll see more shoppers opting for refurbished and end-of-season stock as cost-conscious alternatives to buying the latest new-in products.

The trend for refurbished and end-of-season outlets has been growing in recent years. A refurbished item was sold on eBay UK every 14 seconds in 2020 and there were increasing visits to our Certified Refurbished Hub and Brand Outlet.

As the cost of living bites, this area will present opportunities for shoppers and retailers alike.

Growth of the second-hand market

The second-hand market will grow in popularity in 2022, thanks to increasingly cost-conscious consumers looking for a pre-loved bargain or making some extra cash from older items they no longer use.

With the rise in the cost of living, we are seeing more of our buyers also becoming sellers to fund their next purchases.

Customers added millions more preloved fashion items for sale on eBay in January this year and the total amount doubled compared with 2021.

This rise was even more noticeable in womenswear and kidswear categories where fashion items are known to have a shorter shelf life.

Booming demand for second-hand items online has also spurred on the creation of more resale businesses that offer big-name brands the opportunity to offload unsold stock, while also fulfilling increasing demand from shoppers to buy last-season items at discount prices. 

The rise of luxury resale

Luxury and designer retail isn’t immune from rising costs either and we’re increasingly seeing shoppers search for luxury and designer second-hand goods as a way of beating price hikes. 

It has allowed a new market to flourish: the luxury resale market. Searches for items such as high-end watches and collectable footwear have surged on eBay, with a pair of trainers selling every four seconds in 2020 and searches for watches increasing by 31% over the past two years.

This will continue to grow in 2022 as shoppers seek out the opportunity to indulge in luxury products at a more affordable price point.

Buyers with larger budgets will choose a high-quality second-hand product over splurging on something new or choose to go for quality over quantity by investing a little bit more for a luxury second-hand item that will last.

“As the cost of living rises, the big question is how retailers can respond to customers’ needs”

For retailers, investing in this market presents a huge opportunity but it is reliant on building consumer trust. We’ve invested in this heavily through our Authenticity Guarantee.

Applied to high-value trainers, watches and soon handbags, this programme helps our buyers be assured that when they look to spend on a luxury or collectable high-value item, they can do so with the peace of mind that they are getting the genuine article.

As the cost of living continues to rise, the big question is how we as retailers can respond to our customers’ shifting needs.

By staying close to shoppers in this dynamic environment, there is an opportunity for us to devise creative solutions for them, building customer loyalty in the tough year ahead.