Online store customers are increasingly opting to buy so-called "second-hand" products, and the younger generation especially values affordable prices and the convenience of online shopping. These are conclusions drawn from the latest industry reports. Want to learn more and stay updated with eCommerce news? In the 56th issue of Advox's Press Release, you'll find not only a summary of the latest market research but also learn about the innovative steps taken by eCommerce industry leaders. Interested?
OLX platform reveals the secrets of re-commerce
Factors such as high inflation rates, financial concerns, generational shifts, growing awareness of climate issues, and personal beliefs and lifestyles are influencing the rapid growth of re-commerce, or the sale of "second-hand" products. Over the past 5 years, the sale of vintage products online has consistently grown, averaging a 10% increase annually, reaching $174 billion in 2022.
The concept of re-commerce, or reverse commerce, refers not only to the sale of used goods but also includes the trade of repaired, refurbished, remanufactured items, and sometimes even includes the possibility of renting items.
The OLX platform, which allows its users to post sales offers, examined how re-commerce sales are shaping up in Poland. From the report "Re-commerce bez tajemnic" it appears that:
- OLX users most frequently sell vintage products in the categories: music and education (81%), electronics (79%), and sports and hobbies (79%).
- The total transaction value up to August 2023 amounted to almost 2 billion złoty in the home and garden category and 556 million in the electronics category.
- A significant majority of customers (58%) purchase vintage items online.
- Users more often plan purchases from second-hand than make spontaneous orders.
Re-commerce addresses the needs of those who care about the environment but also want to make choices beneficial to their wallets. These reasons are particularly important for younger generations. 84% of Generation Z representatives stated that they regularly make purchases second-hand.
Read more about the phenomenon of re-commerce in the full report. Will this form of sales soon dominate eCommerce?
How do young Poles shop online? Allegro report
What's it like to be born in the era of eCommerce? The youngest sales platform clients, for whom online shopping is an integral part of life, can answer this. According to a report prepared by Allegro, in October 2023, 84% of people aged 18-24 made online purchases.
What distinguishes young Poles during online shopping?
- 59% of online purchases in this age group are made using smartphones.
- 48% of young e-shoppers look for deals and savings online.
- The most important factors young people consider during shopping are quality (33%) and product price (32%).
- The most frequently chosen product categories are: fashion (58%), beauty (34%), and electronics (33%).
Although young buyers often shop, they approach money matters wisely and care about their finances. Therefore, when designing a sales platform, it's worth including features that help find the best deals (e.g., product filtering or intelligent searching).
Does your sales platform meet the needs of shoppers? Find out by reading the full report.
Klarna - not just deferred payments
Deferred payments, or Buy Now Pay Later (BNPL), became popular last year. Customers are increasingly using the option to pay for an order at a later date, leading to an increase in the number of this service's providers. To stand out in a competitive market, companies must seek innovative ways to diversify their offerings. Klarna, a Swedish tech company known in the BNPL market, has taken such steps.
Klarna is introducing an AI-based image recognition tool to help users find products to purchase. This solution allows users to point their phone at clothing or another product and find similar products in the app. Its operation is similar to the Google Lens feature introduced some time ago.
However, these aren't the only changes. Recently, Klarna developers introduced many improvements, in which the use of artificial intelligence plays a key role. For instance, in 2023, advanced AI algorithms were implemented for even better User Experience personalization.
Inspired by the Swedish company's actions? Read more about Klarna's strategy here.
