‘Retailers cannot ignore the trend of purchasing with purpose’

Conscious consumerism is on the rise. According to the Co-op, ethical consumer spending hit record levels last year, swelling to more than £41bn. 

The coronavirus pandemic has accelerated the trend of ‘purchasing with purpose’ and it’s having a direct impact on the retail industry.

Over the last year, we witnessed an outpouring from consumers looking to shop local, spend wisely and support businesses that give back to their communities and the world around them. It’s a seismic shift in the way consumers are making purchasing decisions – one we are seeing first-hand at eBay.

On the one hand, consumers are increasingly opting to shop second-hand or buy refurbished items rather than buying new. In the past year, a refurbished product was sold every 14 seconds on eBay, as consumers aim to reduce their impact on the world around them.

On the other hand, consumers are actively seeking out brands that have a positive impact on society – businesses that reinvest their profits back into their communities, driving critical social and environmental change.

Our recent Shop for Change report found that eight in 10 consumers say their approach to shopping has changed post-pandemic, with over half (56%) believing it’s now more important to buy from businesses that give back to society. More and more we’re seeing consumers transfer their spending towards these businesses.

While some rightly view this as a challenge, it is also an opportunity - an opportunity to collaborate and innovate within the industry to change the way we operate for the better, while increasing our product range and our relevance with consumers.

Take Trove for example, one of the major innovators across the pond, which is working with retailers to create channels where people can exchange used goods, helping to extend the life of returned items. 

While based in California, they show what’s possible, and what will be needed, for the UK’s retail sector to not only bounce back, but to get ahead of consumer demands.

Helping customers make a positive impact

Closer to home, HURR is offering consumers the option of renting luxury clothes rather than buying them, meaning they can still get the latest trends while staying true to their growing commitment to a sustainable future.

Another area of growth is the social enterprise sector, which now accounts for 2 million jobs in the UK, bringing in over £60bn to the UK economy.

The great and good of retail are responding. From the M&S Sparks card that donates to a chosen charity every time you spend with it, to Asos’s ‘responsible edit’ that lets customers search for recycled or sustainable products to buy over new. Retailers are inventing new ways to help their customers make a positive impact when they shop.

We know our customers want to be able to buy better and we’re investing to help them do that. 

Businesses with a mission

We’re making it easier for our 29 million shoppers to find and purchase from social enterprises through our new eBay for Change hub, a dedicated site to shop from businesses with a social mission, with products ranging from clothes and soaps to socks and collectibles.

Already we’re witnessing more businesses with a social mission join eBay to tap into the reach and opportunity of ecommerce.

One example is Stand4Socks, a social enterprise founded by Josh Turner that sells high-quality socks. Operating through a buy one, gift one model, for every pair of socks bought, Stand4Socks donates one to a homeless charity. To date, the business has donated 150,000 pairs of socks to homeless people across the UK.

As a marketplace, we are in a unique position where we can elevate businesses just like that and give them access to our global shop window.

Over a month since pandemic restrictions lifted and as the country returns to a semblance of normality, attention must now turn towards the retail industry and the future post-Covid economy. Our own research has found that a third of consumers believe that helping disadvantaged communities must be prioritised as part of the nation’s recovery. I wholeheartedly agree.

Retailers cannot ignore the trend of ‘purchasing with purpose’ to stay relevant to customers. The industry has an important role to play in ensuring that it fits this new belief system in society; one which is more conscious and impassioned about social change.

For us, that means empowering social enterprises like Stand4Socks and elevating their impact. But it also means taking a hard look at our platform, recognising where we can do better, and making changes to help build a future economy that works for everyone.