Vinted boss says cost of living crisis has “stimulated” the second-hand industry | Money News Aitrend

The cost of living crisis has “boosted” the second-hand industry, Sky News has learned, with more than £2 billion being spent on second-hand gifts this Christmas.

Adam Jay, CEO of Vinted Marketplace, said the “trend” to buy second-hand was “happening anyway”, but described rising costs elsewhere as a possible “accelerator”.

“I’m sure the cost of living crisis has been a driving factor,” he told Sky News, adding that it had supported the “second-hand industry and trade”.

“But I think this trend happened anyway because of people’s consciousness about overconsumption, sustainable purchasing and consumption.

“I think all of these trends have been profound and I think these are trends that are here to stay. I really think second-hand can ultimately become the first choice,” he said.

Vinted, an online marketplace for buying and selling second-hand items, made its first annual net profit of €18m (£15m) last year.

The company’s turnover also increased by 61% year-on-year, amid increasing demand for second-hand goods.

The Vinted boss’s comments come as more than £2 billion is expected to have been spent on second-hand gifts this Christmas.

A report from Vinted and Retail Economics reveals that second-hand purchases will account for just over 10% of all gift spending.

More than four in five people also said they might spend part of their budget on second-hand gifts this year.

Vicky Saynor, from Hertfordshire, bought all her Christmas presents second-hand, with a total budget of £150.

“This year I said, that’s it, it’s only second hand or they won’t get anything,” she said.

She spent £20 on each of her children and thinks she saved perhaps more than £1,000.

“We have so much stuff in this world that we simply don’t need to buy more. One person’s trash is another person’s gold,” she continued, “I love old things – they have a life, they have a history.

“And second-hand clothes, why not? When I was young, I reused or passed on and that all changed in the 90s and 2000s when the focus was really on consumerism. But we have to change our habits, we have to change our habits.

Shoppers are also selling their own stuff to fund Christmas gifts, with 43% selling online, according to the Vinted report.

More people are also planning to increase their second-hand purchases, with more than a third (35%) planning to buy more over the next five years.

In his interview with Sky News, Vinted’s Adam Jay also highlighted the “confusion” around new tax reporting rules in the new year.

Regulations of HM Revenue and Customs (HMRC) means that if someone sells above a certain threshold, Vinted must ask the seller for their National Insurance number and share it with HMRC.

Mr Jay explained, however, that this is “a relatively small proportion of all sellers” on the platform and that most “will already know” whether they need to provide details.

“Vinted is obliged to collect the National Insurance number of any seller who has sold more than 30 items or more than £1,700 worth of product in the previous 12 months,” it said.

“But here’s what’s really important,” he added, “the requirement to give one’s social security number does not mean there is an obligation to actually pay taxes…there is no tax to be paid on the private sale of second-hand items.”

He also described the new rules as “a bit difficult” for Vinted, as many members already sell at least 30 items.

“I hope they (HMRC) will rethink whether these thresholds are set in exactly the right way to ensure that ultimately it is the right people who pay the tax.”

While “supporting” HMRC’s decision to change the regulations, Mr Jay added: “I wish the thresholds had been set a little differently. In fact, they are set uniformly across all OECD countries.

“I hope that, even in all Vinted markets in which we operate, the tax authorities will consider changing these thresholds or making them more suitable for business models like Vinted.”