What are the similarities between thrift stores, Kijiji, Craigslist, and Facebook Marketplace? All these shops serve as an intermediary in the second-hand economy, which can help you save money.
More than 80% of Canadians use the second-hand market, which accounts for a staggering 1.23% of the country’s GDP. This percentage amounted to $27.3 billion in 2018.
The second-hand economy is booming in Canada across all industries, from clothing to furniture, electronics to cars, for three main reasons:
- Economic
- Altruistic
- Ecological
Let’s explore these three driving forces in more detail.
1. Financial.
Seventy-two percent of Canadians rely on the second-hand economy for economic reasons. To put it another way, almost three out of four Canadians desire to save money.
According to the 2019 Kijiji Second-Hand Economy Index, buying used items from sellers on their platform online allowed Canadians to save $723 annually on average. Additionally, Canadians earned an additional $961 by selling things online.
Always make it a point to search the used market before visiting the store and purchasing something brand new if you are attempting to save money or have a limited income and need the item.
2. Altruistic.
Kijiji’s 2019 report reveals a correlation between a robust conventional economy and a thriving secondhand economy. Consequently, it would be easier to understand why 69% of people use the second-hand market for charitable purposes.
For instance, when purchasing a refrigerator from an online marketplace, your money will go directly to a person in your region or neighborhood rather than a big-box retailer. The people with whom you live circulate the money in your locality. The $100 refrigerator you purchased may be aiding someone in paying off debt or assisting a mom in dressing a newborn.
3. Ecological.
There are two main reasons to participate in the secondhand market:
- Acquisition. It is to prolong the existence of a product that someone else no longer desires. Another aspect of this is to avoid purchasing new goods when secondhand ones would do.
- Disposal. Instead of throwing something away and having it wind up in a landfill, it entails looking out for use for the item.
67% of Canadians say they participate in the second-hand market for ecological reasons. We can expect this percentage to rise as consumers become more aware of how new products affect the environment.
Considering the future
The second-hand economy in Canada will continue to expand. 82% of Canadians currently participate in this secondary market. If we look at Canadians aged 45 and under, the percentage rises to 88.
It’s always a good idea to first explore if Canada’s thriving second-hand economy has what you’re looking for before deciding to buy new, whether you’re purchasing or selling items for financial, charitable, or environmental reasons.
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