The figures from Svensk Handel’s half-year report for the Pre Loved indicator show that e-commerce thus accounts for 69 percent of total second-hand sales, an increase from 67 percent the previous year. After a weak first quarter, the market began to recover in the spring. July was particularly strong for digital players. Online sales then amounted to approximately SEK 1.2 billion, an increase of 24 percent compared to July last year and 38 percent higher than in June. E-commerce’s share of the market rose to 70 percent during the month as a result.
The first half of the year was weak overall, but the development during the spring and summer is significantly more positive. The fact that sales were almost back to last year's levels already in the second quarter and then increased clearly in July shows that interest in second hand remains strong. There are good conditions for the market to continue to grow, says Maria Mikkonen, Chief Economist at Svensk Handel.
Among the various product categories, it is fashion that is driving sales forward. Fashion was the only one of the major categories to show growth in the first half of the year, with an increase of 2 percent to SEK 2.4 billion. The category now accounts for more than a third of total second-hand sales. At the same time, other large categories such as furniture, consumer electronics and books showed decreased turnover during the half-year, although books noted a sharp increase in July.
Waiting for politics
For e-commerce companies and other trading companies to be able to continue developing profitable circular business models, Svensk Handel now demands changes from the political side, particularly regarding VAT handling.
The government's proposal for simpler VAT rules is a welcome step and can reduce administration for many second-hand companies. But it does not change the VAT rate. The next step should be to lower the VAT on second hand and thereby further strengthen the conditions for circular business models. For the government that takes office after the election, this is an issue that can seriously contribute to more sustainable consumption. Trade is ready, now we are waiting for politics, says Maria Mikkonen.