Sales of second-hand products are growing, both in supply and demand. More and more people sell second-hand products on online platforms; which has also proliferated in recent years. In this case, we have been able to learn how a company like Wallapop is experiencing it.
Sales of second-hand products are experiencing a real boom, both in quantity and variety and in the number of registered users. More and more people decide to sell items that they no longer use or need, either to earn extra money, to save space or for both reasons.
According to the study of Statista Global Consumer Survey 2021 Where consumers from all over the world were surveyed, the main country where the interviewees declared having bought at least one second-hand item during the last twelve months was the United States with 55%. Meanwhile in Spain only 36% of consumers had made a purchase in the last twelve months. Other countries that also appear on the list are: Brazil (45%), Italy (30%) and Russia (27%).
Between the main reasons that encourage consumers to buy on second-hand platforms they find each other:
- Pay less for a product.
- Behaving responsibly with respect to the environment: avoiding generating waste or overconsuming.
- Try new products.
- Benefit from superior product quality that you couldn’t afford like new.
- Get a product faster than if you bought it new.
As we all know, when there is demand, supply grows. And these figures have not gone unnoticed by some. For this reason, websites and marketplaces where consumers can buy and sell products have proliferated. The marketplaces they have become dominant in the frequency of consumption in the last 12 months, becoming the first purchase option for 80% of those surveyed.
More than 15 million users and 180 million articles
Wallapop is one of the main platforms in the market for second-hand products. It was born in 2013 with the aim of connecting people who wanted to sell what they no longer used through their mobile, and at the same time facilitate a more humane and responsible way of consuming. Throughout these years, they have worked to make second-hand the first purchase option for people, allowing them to participate in a more sustainable consumption model that offers economic advantages: by buying and selling through Wallapop. Consumers not only extend the life of products, but also obtain a small amount for what they no longer use or access quality products at very competitive prices.
One of the features that has allowed it to triumph over its competition is its ease of use and the multiple services it offers to its user community. Thanks to its geolocation technology, users can access products that are close to them, but also buy and sell from a greater distance, using the Wallapop Shipments tool. They already have more than 15 million users, who have given a second life to more than 180 million articles.
What interests Spanish consumers?
ORNot out of five Spaniards say that in the next five years they will spend more money on second-hand products than on new ones (the data comes from a study published by Wallapop with Ipsos). In addition, it shows that the youngest, between 16 and 23 years old, are the ones who most follow this trend. This change in consumption habits and in the type of final consumer has meant that the products that are purchased online not only belong to categories such as cars, the only type of product that was purchased online before, but have also been extended to other large number of products.
In Wallapop they have confirmed this fact by sharing with us the main categories of their platform: “In general, the most popular categories are “Fashion and Accessories”, “Home and Garden”, “Kids and Babies” and “Computers and Electronics”, but the “Motor and Accessories” category also stands out. Regarding the latter, we are currently the second platform with the highest volume of second-hand car supply and the first, if we exclusively consider vehicles from private sellers”.
Resale with a price higher than the starting price
Consumers have also become interested in acquiring collectible and resale products. To do this, they use platforms such as Wallapop, because this one acts as a connection channel between users, but they do not have an active role in the publication of advertisements or in setting the prices of the items offered. These depend on what each individual user wants to put. However, the platform takes care of some aspects: “We always require users to comply, at all times, with the legal requirements applicable to their activity on Wallapop, as set out in the terms and conditions of the platform, which prohibit the sale of objects that do not comply with community regulations or that do not comply with to current legal provisions”.
One of the most controversial products was the latest generation of one of the most famous consoles, the PlayStation 5. The brand experienced difficult times with the launch of this product on the market. Since the release of the console, some buyers have opted for the resale of it. lack of stock caused by the lack of components of hardware it meant a great opportunity for all those people who wanted to get some extra money. When a new batch of game consoles came out on the market, there were people waiting to buy it, even with notices on Telegram, in which they were notified when there was stock, only to sell it for a higher price than the original. The original price established was 499 euros, while in the resale the amount is from 700 to 900 euros.
This situation is also repeated in other products such as graphics cards. Prices are not yet back to normal. Until recently, the value was doubled or tripled by scarcity.
Treasury wants to control the resale
Users of second-hand product platforms are growing and therefore some have managed to make a lot of money selling products they no longer need. Something that has not gone unnoticed by the government.
AGiven the growth of this online market, the Ministry of Finance reported that the operations of these platforms will begin to be subject to taxation, as is the case with physical transactions. However, not all sellers will be required to declare. Specifically, it will be for products whose selling price is higher than what was purchased. In most cases it considered collector’s items. In this case, the seller must pay a 19% tax if the earnings reach 6,000 euros of profit. If they exceed it and the benefits are between 6,001 euros and 50,000 euros, which will be subject to a 21% taxation. In addition, 23% when they exceed 50,000 euros.
From Wallapop they explain to us that this will not be a problem for them, since they do not interfere in user transactions. However, if they tried toat all times that our users comply with the legal requirements applicable to their activity in Wallapop, as well as stated in the terms and Conditions”.
How has 2021 been for Wallapop? What do you expect from 2022?
We close 2021 with two great milestones for Wallapop. On the one hand, a financing round in which we raised €157 millionwith which we reach a €690 million valuation, the highest figure attributed to the company to date. On the other hand, we launched our platform in Italy, where we found a market with great potential and very similar characteristics to the Spanish market. These two milestones are the results of the consolidation of our monetization channels and the consolidation of the company, which continues to fulfill the perspectives set since its inception.
At Wallapop we work every day to put technology and innovation at the service of our users, whom we make part of a more sustainable way of consuming.
Within our current objectives for 2022, we want to raise the second-hand market to be one of the first purchase options for people, in addition to continuing to focus on the consolidation of the platform in Italy.
In the words of Rob Cassedy, CEO of Wallapop: “Our ambition is to break down the barriers of the second-hand market and build a unique inventory ecosystem in Europe, which can continue to expand in the future and make it easier for everyone to participate in a more sustainable consumption model.”