Online used goods trading declines amid economic downturn
A consumer searches for items through an online secondhand market on his mobile phone in this 2021 file photo. Korea Times file
By Kim Jae-heun
A 32-year-old office worker in Seoul surnamed Han has stopped using Daangn Market citing that many used items that are in good condition are often too pricey and the ones that are cheap are useless.
“These days, there are too many unopened products at Daangn Market sold for only 10,000 won ($7.59) or 20,000 won cheaper than the original prices. I would rather pay 10,000 won more and buy them at a department store,” Han said. “Also, there aren't many useful items with good prices. Items with good prices are often outdated game consoles, worn-out shoes or furniture that looks like it has been used for over 10 years.”
A 29-year-old part-time worker surnamed Lee living in southern Seoul's Dongjak District said his budget has become too tight to even afford secondhand items after sharp rises in food prices over the past few months.
“My salary is the same, but dining prices have hiked so much recently. When I pay for my rent, shop for groceries and hang out with my friends on the weekend, I am literally left with a few thousand won until the next payday. Even shopping for used goods is too extravagant for me,” Lee said.
The demand for used goods from online flea markets is on the decline as people spend less money to cope with the continuously rising living costs.
The country's top two online secondhand services ― Daangn Market and Bungaejangter ― are also seeing the number of shoppers on their platforms decrease over time.
According to big data platform Mobile Index, Daangn Market's number of weekly active users (WAU) began dwindling from the second half of last year and fell by about 1 million from mid-10 million to mid-9 million as of March.
Bungaejangter's number of WAU, which peaked at 1.6 million in 2021, also decreased to 1.2 million recently.
Looking at the latest indicators, the number of WAUs at Daangn Market and Bungaejangter in the third week of March fell by 4.4 percentage points and 19 percentage points, respectively, compared to the same time last year.
However, Bungaejangter sees this as a passing phase.
“The first quarter of the year is always off-season for online secondhand platforms. Also, it is more important to look at daily active users (DAU) rather than weekly active users as an indicator. Our number of DAU increased 10 percent last month,” a Bungaejanter official said. “Online secondhand markets are the most-used mobile app service after Coupang among teens and twentysomethings, so we are still in good shape.”