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In 2020, the volume of c2c sales in our country exceeded ₽1 trillion. Aleksey Kurakin, Managing Director of Avito Goods, talks about the main trends in this market
Trend 1: c2c sales are booming
Residents of our country are increasingly trading with each other. This is clearly seen in the results of a study that we conducted together with Data Insight. From April 2019 to November 2020, online c2c sales increased by 87% to ₽1,06 trillion.
The number of transactions in 2020 increased by 70% and reached 301 million. Most of them (81%) are still made on ad sites. Avito remains the leading platform: 182 million transactions were made here last year.
Market growth in 2020 was provided by three main factors — increase in the audience of buyers, the frequency of sales and the average check.
- Number of buyers reached 13,3 million people, i.e. 12,6% of the total number of Internet users in the country. During the last measurement in April 2019, this figure was 11,9%.
The habit of buying online, which developed in our country during the pandemic, has also spread to the c2c segment. With the transition to remote work, many needed additional equipment to work and study from home, and consumers sought to save on such purchases.
During the lockdown, it was not clear how long they would have to stay at home. But in any case, consumers did not want to buy, for example, a new treadmill for temporary use. Therefore, they evaluated the possibilities of sharing and purchasing second-hand goods, including for temporary possession.
- Frequency of sale last year was 2,3 transactions per month per seller. For comparison: in 2017, each of them, on average, made only one transaction per month. The growth was provided primarily by sellers with experience who were already familiar with the mechanism of c2c trading. Many of them have more time during the pandemic to take apart their home and start selling unnecessary things.
However, there was no sharp increase in the number of sellers: the indicator stabilized at 13,2 million.
- Average check in the c2c market has increased for the first time in several years. If in 2017–2019 it fluctuated at the level of ₽3–210, now it has reached ₽3.
Trend 2: private individuals trade not only second-hand
Trade between individuals is no longer limited to used items. The share of transactions with new goods reached 15% in the total market volume. And the share of those who resell new items purchased specifically for this purpose has grown one and a half times – from 8% in 2017 to 12% in 2020.
This is also the impact of the pandemic. Due to COVID-19, employment has temporarily decreased, so people began to earn on resale. For some, online transactions have become the main source of income: there were about 11% of such sellers on the market last year. The models of work here are very different: they sell both within their city and throughout our country – both wholesale and retail.
Most of all new things are in the categories “Products for beauty and health” and “Accessories”. However, the most popular category on the c2c market is still Electronics and Household Appliances, accounting for almost a quarter of transactions. More than 600 smartphones are sold monthly on Avito alone.
Trend 3: the delivery area is expanding
Thanks to the development of delivery, c2c sales are becoming more and more like the work of a regular online store and moving further and further away from the “meet at the subway to pick up the purchase” scheme. Today, only 53% of sellers trade within their city, compared to 72% in 2017. And the share of those selling throughout our country increased from 7% to 16%.
Individuals are actively mastering professional tools familiar to traditional e-commerce, including courier services and pickup points.
At Avito, we launched delivery for individuals back in 2018. Now goods purchased on our site are sent to more than 1,1 thousand cities and 21 thousand settlements in our country. Last year alone, we organized more than 2,5 million deliveries.
Sooner or later, ad sites will begin to enter the international market. This is not a quick process as it involves trade between different jurisdictions, customs control and duties. All this complicates the purchase and delivery, increasing the final cost of the order.
However, there are precedents when, for example, European buyers are willing to buy luxury used clothes and accessories in our country, because it is very advantageous due to the difference in the exchange rate and price. This means that classifiers have prospects for the development of trade with both near and far abroad. But so far, everyone is focused mainly on the local market, since it is still far from saturation.
Trend 4: Buyers come not only for the price
The lower cost of goods – new or used – remains the main motivation for buying from individuals. 54% of buyers name it as the main argument. And yet, this is not the only factor that attracts an audience to the c2c market.
With the advent of sellers who offer custom-made goods or unique items, users began to come to the classifieds for a specific product. 42% of respondents note that the thing they are interested in could only be bought “from hand”. That is, it was either not available in online stores, or the required color or size was missing, or it was generally about a unique product that is not sold on regular e-commerce sites.
Anything can be such a unique product – from a rare book or a vintage XNUMXth-century brooch to clothes from previous collections or a specific model of a pram that has long been discontinued.
The growing trend towards conscious consumption also plays its role. Young people are looking for a variety of items in the c2c segment – from vintage clothes to reusable coffee cups, willingly buying up plants and Soviet furniture for restoration.
Trends for the future
94% of shoppers who purchased goods online from individuals in 2020 intend to do so in the future. They are attracted by the benefits, convenience, speed of transactions, as well as a large selection and the fact that the right things are always in stock.
In my opinion, in the next few years we will see several major trends in the market.
- Used goods can be bought in the same way as new ones – with a guarantee and through a transactional model
The list of auxiliary options available to sellers and buyers will also expand. More and more transactions will take place not only with the use of delivery, but also with a check of the serviceability and authenticity of the goods from the sites. This is true for many categories – from accessories to home appliances.
With this model of work, at the time of the announcement, the sites will offer the seller to diagnose the goods. Verified products will receive special marks, and this will increase the chances of their sale. For buyers, this is also a profitable scheme, because they are interested in purchasing a proven product, and not a pig in a poke. In addition, the sites will offer a guarantee and insurance, which is very important, for example, when buying used equipment.
- On c2c sites, the volume of buying back used items for subsequent reselling will increase
At the same time, the number of intermediaries offering such services will grow. Thanks to them, sellers who are not engaged in trade professionally will be able to save time on transactions. For example, they do not have to independently organize the display of goods or work with objections.
- Individuals will not only sell and buy things from each other, but also rent them out
It will also need intermediaries – entrepreneurs who will buy things and rent them out.
For example, if you need a drill to hang one shelf, then buying an expensive tool does not make sense. Instead, it will be possible to rent this drill from an intermediary that specializes in repair tools.