Parents Turn to Resale to Save Money and Help Local Economies as Financial Stress Levels Spike During Coronavirus, According to OfferUp's 2020 Recommerce Report

SEATTLE, April 30, 2020 /PRNewswire/ -- Today, OfferUp, the largest mobile marketplace in the U.S. for local buyers and sellers, released the findings from its 2020 Recommerce Report: Parents & Kids. The report, published in partnership with data analytics and consulting firm GlobalData, includes new market research and the results of two nationwide surveys of parents. It reveals new insights into how today's parents are shopping for Baby & Kids products, from furniture and clothes to essentials. It also takes a closer look at how the Coronavirus pandemic has impacted families across the U.S. and uncovers how parents are coping with increased financial and family stress.

Coronavirus is Proving to Be the Ultimate Stress Test for Parents
Elevated levels of financial and social stress may be common among parents, but survey findings reveal that these pressures have only intensified as a result of Coronavirus. With recent shifts in everyday life resulting in new roles and routines at home, parents are experiencing new challenges, including finding ways to entertain and educate their children.

• 66 percent of parents are more worried about their finances now than before the start of the Coronavirus pandemic
• 63 percent of parents are experiencing more parenting stress compared to before the Coronavirus pandemic
• 70 percent of parents say finding ways to keep their child/ren entertained is currently the most challenging part of parenting; 61 percent report it is educating their child/ren at home

Yet despite increased financial concerns, the unique challenges parents are facing have resulted in additional spending.

• 64 percent of parents have purchased baby and kids items as a direct result of Coronavirus
• 80 percent of parents admit to buying an item to help keep their child/ren entertained
• 61 percent of parents have purchased an item to support their kids' at-home education

Parents are Turning to Local Online Resellers to Save Money, Help Others
When it comes to where parents are shopping, more than half (60 percent) of parents say the Coronavirus pandemic has impacted where they buy baby and kids gear, with many choosing to shop on local online marketplaces, such as OfferUp, to meet their families' needs.

As people adjust to spending more time at home, search and engagement activity on OfferUp has increased significantly for products that help parents and children pass the time, entertain loved ones, and maintain their daily routines. This includes an increase in searches for puzzles (+1,100 percent), swimming pools (+450 percent),  water tables (+370 percent), swing sets (+200 percent), and playgrounds (+160 percent).

Additionally, OfferUp has seen:

• A 3x increase in people buying video games, and a 155 percent increase in keyword searches containing Nintendo Switch
• A 100 percent increase in average weekly shopping buying interest in the Toys and Games category compared to the first 45 days of 2020
• A nearly 100 percent increase in buyers using nationwide shipping as community members practice social distancing

Nationally, parents who have purchased items on local online resellers in the past month, 42 percent noted sustainability as the main reason. Meanwhile, 39 percent indicated it was to help support local economies, and 38 percent chose to shop resale because it is less expensive.

However, the desire to help others extends beyond shoppers engaging in recommerce. Universally, parents and neighbors are deeply invested in their community and are finding new ways to support each other during this time of crisis. Since the start of the Coronavirus pandemic, 39 percent of parents have donated or given away baby and kids products to another parent or family.

The Rise of Recommerce is Part of a Broader Shift in Where Parents are Shopping
While parents have turned to resale in response to the Coronavirus pandemic, the trend is not explicitly limited to this unique period. According to the report, the Baby & Kids recommerce market is poised for continued growth and projected to hit $5.6B by 2024, more than doubling from 2019. This makes it the fastest-growing segment of the overall Baby & Kids market and placing it well on track to outpace retail.

Survey data also reveals that the rise of recommerce is part of a broader shift in where parents are shopping for Baby & Kids products year-round and signals an increased interest from parents to seek out and purchase secondhand products for their children.

In 2019:

• 83 percent of all parents reported using at least one secondhand product for their kids
• 65 percent of parents chose to buy second hand products to save money
• Parents who welcomed their second child in 2019 saved $653M by using secondhand and hand-me-downs rather than purchasing new products
• One in five parents named sustainability as a driving factor for using secondhand items
• 61 percent of parents indicated they would welcome a secondhand gift for their child

Parents Show Stronger Connection Than Non-Parents to Sustainable Products and Recycling
OfferUp's Recommerce Report also sheds light on parents' desires to engage in more sustainable purchasing decisions and takes a broader look at how this impacts their buying choices.

• 51 percent of parents with kids under 12 are willing to spend more on sustainable products; this is 11 percent more than non-parents
• 57 percent of parents with kids under 12 prefer to recycle and reuse products they no longer need rather than throw them away; this is 21 percent higher than non-parents
• 40 percent of parents try to buy environmentally friendly kids products, even if it's more inconvenient

However, one in ten parents admits to throwing away brand new, never-used items. OfferUp found that parents discarded more than 2.3 million new and gently used baby & kids items in 2019. If parents resold these items instead of throwing them away, they could have collectively earned more than $84 million.

View the entire 2020 OfferUp Recommerce Report: Parents & Kids here.

Learn more about OfferUp at https://offerup.com/ and download the app in the App Store and Google Play Store.

About OfferUp
OfferUp is dedicated to building the simplest and most trustworthy way for people to buy and sell in their communities. As the largest mobile marketplace for local buyers and sellers in the U.S., the company's iOS and Android apps have been in the top five most popular shopping apps lists for more than three years. The privately held company is based in Bellevue, WA and backed by top investors including Andreessen Horowitz, Warburg Pincus, GGV Capital, T Rowe Price, and Coatue Management. For more information, visit our website and follow us on Twitter and Facebook.

SOURCE OfferUp

Related Links

https://offerup.com