Facebook Marketplace boom expected as side hustle tax hits

Category: Data & Insights
Facebook Marketplace boom expected as side hustle tax hits

New research from GWI, the global consumer research platform, shows Facebook Marketplace could become the go-to when it comes to second-hand purchases.

Whilst eBay remains the undisputed champion in the second-hand market, with 54% of Brits using it, Facebook Marketplace has emerged as an unassuming leader. Over a quarter (27%) of UK shoppers are now using the platform to purchase pre-owned items, making it more popular than second-hand and vintage heavyweights, Vinted (21%) and Depop (5%).

These findings come in light of the HMRC crackdown on second-hand ‘side hustles’, which means sellers making more than £1,700 a year – roughly £140 a month – will be taxed.

The latest regulations from the HMRC reflect an ongoing shift to second-hand shopping online, and a turn towards ‘thrifting’ more generally. As one of the only major platforms not expected to hand over financial details of sellers to HMRC, our insights suggest Facebook Marketplace is likely to see a boom in users in the year ahead.

– Matt Smith, Trends Manager, GWI

The shift to thrifting

Thrifting has become increasingly popular in recent years, with almost a quarter (23%) of UK consumers saying they have purchased a second-hand product on at least a monthly basis. In addition to this, 15% say they’ve bought a pre-owned item in the last week – a 7% rise since 2021.

The findings suggest that this rising trend has been accelerated by the cost-of-living crisis, as consumers search for better value products. More than half (55%) of shoppers say price is the key reason for buying second-hand, far higher than those who do so for sustainability reasons (8%).

The research also identifies the most popular second-hand purchase categories:

  • Clothing accounting for almost half (45%)
  • Toys (19%)
  • Shoes/trainers (12%)
  • Smartphones (11%)
  • And accessories (11%)

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