Sydney, Sept 10: As the cost of living continues to rise, Australians are changing their approach to shopping.
A survey from ShipStation has revealed that one in four Australians (26 per cent) are not confident about making purchases over $200 in the next six months, while only 18 per cent feel very confident about such spending.
With inflation climbing 3.8 per cent between last June to June this year, and the clothing and footwear sector seeing a 3.1 per cent increase compared to the March 2024 quarter, consumers are increasingly turning to second-hand goods.
The survey of 1,000 Australians found that almost a third (32 per cent) have boosted their second-hand purchases over the past year, with 70 per cent citing lower costs as the main reason for doing so.
David Boyer, VP and Head of ANZ at ShipStation, noted that economic pressures are shifting consumer behaviour.
“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,” he said.
Boyer expects the second-hand market to keep growing over the next six months, as shoppers prioritise value.
Jasmine Yan, a Fashion Recruitment Consultant and avid thrifter, has also felt the effects of the rising cost of living.
“The cost of living crunch has got me thinking twice before any big splurges. For example, I’ve switched to Aldi for groceries as a cheaper alternative, cut down on impulse buys, and only get clothes I’ve been eyeing for a while — gotta be smart with spending!” she said.
“To stick to my budget, I shop for second-hand clothes. That way I get unique pieces while making more sustainable choices and feeling a smaller impact on my wallet. My tip to save some cash? Make a budget plan for the week to keep track of expenses, and don’t be afraid to talk to those around you and share your struggles so everyone can pitch in with their support. We’re all in this together!” Yan added.
Second-Hand Boom Driven by Cost, Not Sustainability
Gen Z and Millennials are leading the surge in second-hand shopping, with 51 per cent of Gen Z and 40 per cent of Millennials buying pre-owned items on a weekly or monthly basis.
In contrast, only 15 per cent of Boomers report the same frequency of second-hand purchases.
Despite assumptions that environmental concerns are a major driver, 70 per cent of Australians said lower costs were the primary motivation for second-hand shopping, while only 23 per cent cited environmental reasons.
Consumers are also drawn to the unique nature of second-hand finds, with 42 per cent noting the thrill of discovering rare or unusual items.
Nearly a third (31 per cent) of shoppers said they purchase second-hand items because they can find higher quality goods for lower prices.
Barriers to Second-Hand Shopping
Despite the growing trend, concerns about quality (45 per cent) and limited selection (43 per cent) still deter many from buying second-hand.
Trust in sellers is also an issue, with 37 per cent of consumers expressing doubts.
Among younger generations, 51 per cent of Gen Z shoppers said quality concerns prevent them from buying second-hand, while Boomers struggle more with limited product availability (57 per cent). However, Boomers are more trusting of sellers than younger shoppers, with only 32 per cent citing lack of trust as a concern compared to 43 per cent of Gen Z.
Shipping and Returns Remain Crucial
Shipping and returns continue to play a significant role in shaping consumer decisions.
Nearly two-thirds (63 per cent) of Australians prioritise fast delivery when shopping online, while 57 per cent look for reliable tracking.
High shipping costs remain a major issue, with 70 per cent of consumers saying they would stop shopping with a retailer due to excessive shipping fees.
Other issues that deter shoppers include late deliveries (44 per cent), lack of communication (39 per cent), and poor packaging (36 per cent).
“Consumers want affordable, high-quality products delivered quickly,” said Boyer.
He urged retailers to streamline the shopping experience ahead of the peak sales season by offering clear product descriptions, easy returns, and secure payment options to build trust and encourage repeat purchases.
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