The total spend via UK online marketplaces is forecast to reach over 30.4 billion euros in 2019. It’s also expected to rise 15.2 billion euros over the next five years. This corresponds to an increase of 50.1 percent. And it’s mostly Amazon and eBay who dominate the online marketplaces market.
It’s predicted Amazon and eBay will account for over 90 percent of all the money spent at online marketplace in 2019, the report “Retail Channel Series: UK online marketplace retailing 2019 – 2024” from GlobalData shows.
Spend on new items grows 53.9% in next five years
The spend on new items will grow 53.9 percent over the next five years, while spend on second hand products will increase by 29.8 percent during the same period, the study predicts. According to the researchers, the prominence of Amazon and eBay will significantly contribute to the rise of new items at online marketplaces in the United Kingdom, because retailers look to these platforms for growing their revenues.
Spend on second hand items: 20% of total spend
The study thinks the spend on second hand items will account over less than 20 percent of total online marketplace spend this year. That might come as a surprising, given the fact concerns surrounding sustainability are growing.
‘Few sectors lend themselves well to resale’
But the researchers think the relative small share of second items on online marketplaces might have to do something with the fact that few sectors lend themselves well to resale. “Growth in the second hand market will be driven by sites dedicated to resale”, GlobalData’s retail analyst Emily Salter explains.
“These sites offer unique and often vintage items for lower prices, and the concept of ‘social shopping’ appeal to 16-24 year olds”, she says, adding these dedicated stores are alternatives to the ubiquitous model of fast fashion and big brands.