The secondhand market isn’t just for old aunts who like to haggle.
Even before the pandemic began, online secondhand and consignment websites proliferated.
In the 2022 Fashion Resale report by ThreadUp, global secondhand market sales are expected to grow from $96 billion in 2021 to $218 billion in 2026.
The online used goods market is a growing segment of the retail industry.
Whether you’re looking to save money, declutter your apartment or find something new, plenty of websites make it easy to sell and buy pre-owned items.
Here are the top five marketplace sites for used goods that will help you eliminate what you don’t need and find something new simultaneously.
eBay - The Worldwide Used Online Marketplace
One of the world’s most popular online marketplaces for new and used goods, eBay is a great place to start for those looking to buy or sell used items.
The platform, initially called AuctionWeb, started as an auction website where people could sell their used items to the highest bidder.
With over 138 million active users, it’s easy to find buyers; those from the United States make up 31% of active sellers on the platform.
As reported by Statista, eBay ranks as the most popular online platform for secondhand items in the United States in 2021, followed closely by Facebook Marketplace.
eBay charges two types of selling fees: 'insertion' and 'final value fee'.
Insertion fees are listing fees; a seller gets 250 zero insertion fee listings.
Beyond that, it’s $0.35 per listing.
The Final Value Fee is the amount eBay takes per sale.
The final value fee for most categories is 12.9% of the sale price or lower, plus $0.30 per order.
To sell on eBay, register for a basic account on the website. eBay allows users to create a business account, but a basic account is sufficient for selling personal used items.
Facebook Marketplace - The 2nd Largest Used Online Marketplace
Launched on October 2016, Facebook Marketplace has since grown to have more than one billion active users.
Initially intended to be launched as a separate app from Facebook, the team responsible for the marketplace decided to integrate it with the whole 'FB' ecosystem.
It proved to be the right decision.
In another report by Statista, Statista reports the general Facebook platform has nearly 3 billion active users monthly.
In January 2021, data found Facebook to be the website Americans spend the most significant amount of time on daily, followed by Tiktok and Twitter.
Users can tap the marketplace icon to start selling on Facebook marketplace and begin listing their items.
Facebook allows up to ten photos per listing.
Sellers can then set the items either for local pick-up or shipping.
The marketplace listing can also be posted in various buying and selling groups within the platform.
When using their Commerce Manager, Facebook Marketplace charges a Selling Fee of 5% per shipment or a flat fee of $0.40 for shipments of $8.00 or less.
Selling fees already include taxes and the cost of processing payments on the platform.
These fees also apply to all checkouts via Facebook and Instagram.
For the time being, Facebook Marketplace is currently waiving these fees until the end of 2022.
thredUP - Taking the Used Retail Industry by Storm
Part of the growing “buy, sell, trade” trend that’s taking the retail industry by storm, ThredUp is one of the most popular online marketplaces for used clothing and accessories.
Founded in 2009 by James Reinhart, Chris Homer, and Oliver Lubin, thredUP grew from being self-funded to a unicorn startup within a decade.
The platform operates in a consignment inventory model.
To sell on thredUP, interested individuals can sign up to get a Clean Out Kit.
Once the kit has been received, sellers can fill it with gently used clothing items they no longer want, send it back to thredUP, and the company will do the rest.
This process takes minimal effort from sellers.
After the company receives the clothing items, they go through a 12-point inspection wherein thredUP determines which items can be listed and their resale value.
Around 40% of the items are accepted for reselling at thredUp.
Items that have not passed thredUP’s standards are responsibly recycled.
If the seller wants the unlisted items returned, they can purchase a Return Assurance for $10.99.
thredUP charges a commission fee that ranges from 20% to 90% of the item’s value.
Seller’s payouts also depend on the price of the item.
For example, if an item is priced at $50.00-$99.99, the seller gets 30%-60% of the price.
One way thredUP stands out from other clothing marketplaces is because of its commitment to sustainability and reducing waste in landfills.
The company offers free reusable mailer bags and a cleaning kit to every seller, helping them to clean and store their used clothing, making it easier for them to list their items.
Amazon - Yes, Amazon Has a Used Online Marketplace
As the world’s largest online retailer, Amazon is also one of the top choices for selling secondhand items.
The Amazon app is the second most used shopping app in the United States, with 98 million users every month.
Amazon is also the second most trusted brand, according to Morning Consult.
Moreover, Amazon already has a 45% share of the United States eCommerce market.
Like Facebook Marketplace, the platform has a broad reach of potential buyers for its used items.
While Amazon is mainly known for selling brand-new items, many sellers on the platform earn extra income through secondhand goods.
However, Amazon doesn’t allow every product to be sold on the platform as used.
Some accepted categories include books, Amazon Kindle, cameras, cellphones, consumer electronics, major appliances, musical instruments, office products, personal computers, video games, and more.
Amazon is meticulous in stating the condition of used items.
For example, conditions for used books vary from like 'new', 'very good', 'good', and 'acceptable'.
Amazon also notes the conditions and details of the item, like scratches or things the buyer must know to manage their expectations.
Sellers can start selling on Amazon either as a Professional or Individual account.
Professional seller accounts are charged $39.99 per month, while Individual accounts pay $0.99 per item listed.
Aside from the seller accounts, sellers also have to pay Amazon a Referral Fee.
Referral fees range from 6% to 45%, depending on the product category and item price.
Amazon also charges a Closing Fee for items under its media categories.
The closing fee is a flat rate of $1.80, added to the Referral Fees. Books, DVDs, music, software games, and video game consoles fall under this category.
Poshmark
Alongside thredUP, Poshmark is one of the fastest-growing global platforms for buying and selling pre-loved items for men, women, kids, pets, and homes.
Founded in 2011, Poshmark has grown to 80 million registered users across the United States, Canada, and Australia.
The website has one item sold per second in the United States!
In 2021, the company had annual revenue of $326 million, a 25% increase from $261.6 million in 2020.
Poshmark offers something unique in that its platform enables users to follow, like, share and comment on clothes listings.
This is designed to appeal to its primary audience - millennials and Gen Z users who love interacting with their favorite brands.
This social feature has proven to be an effective way to build trust among buyers and sellers.
Around 80% of sales on Poshmark are from repeat shoppers.
Creating a listing on Poshmark is pretty easy and can be done via the website or app.
Via the app, this can be done by tapping the "Sell" button, uploading pictures of the items, filling in the details, and then the List button.
Sellers also have the option to share the listing with their family and friends via social media.
The platform’s commission fees are straightforward.
For sales under $15, Poshmark takes a $2.95 commission. For transactions over $15, the seller keeps 80% of the sale, while the website takes a 20% commission.
Used Online Marketplaces Fast Growth
With the secondhand market's projected continuous success and the fact that demand for sustainable alternatives keeps growing, more people will look toward online marketplaces to sell their used items.
It may have started with younger consumers, but they then influence the older generation to do similar.
With such changes in the buying decisions of the two most significant segments of the population, marketplaces for used items are set to continue enjoying their success.
Interested in launching a used online marketplace? Want to learn more about how Yclas can help you launch and grow your online marketplace? Click here for a free trial.
