The US Secondhand Trading Experience – Needs Consideration

I've been trying to get rid of some things I don't need lately, but I've found that there's no good way to sell some of my good items.

Small items (the kind that can be mailed) are very easy to sell on eBay. If you can't sell them on eBay, they probably don't have much value. So we're not considering items that can be shipped by courier here.

After some preliminary research, I found that there are several channels in the US for selling secondhand items: Craigslist, Facebook, and apps (Letgo, Offerup, 5miles), and these channels have very distinct differences. Here are my experiences:

Craigslist

Let's start by talking about this benchmark in user experience (achieving the highest level of UX with the lowest UI). Many friends from China feel like they've stepped back into the last century when they first open this website—the extremely rudimentary interface, the unadorned UI, and the retro way of operating it. But yes, it's Craigslist, which remains irreplaceable to this day. I've included a screenshot for those in China who can't access it.

美国二手交易体验 - 需求思考 - screencapture washingtondc craigslist org 2018 12 11 15 03 01 - Jake blog

On this platform, you can find anything you're looking for, all sorts of random things. There are even categories like "Men Look for Men" and "Girl Look for Girl." Its categorization covers most everyday needs. Overall, Craigslist is a fairly practical platform for secondhand trading; at least you'll get a response when you post something, especially for larger items—if the price is low enough, you'll get inquiries.

Here's a point to mention: many people think that if the price is low enough, someone will definitely want it, but that's not the case. As mentioned before, these items cannot be mailed; the buyer needs to pick them up themselves. This involves transportation costs, and some furniture items even require a truck. In the United States, where labor costs are very high, this is a very troublesome matter. Even if many items are delivered, there's no guarantee that someone will want them.

Craigslist was the only platform among these that helped me sell large pieces of furniture.

Facebook Marketplace

Facebook recognized this market early on and launched its marketplace a few years ago, aiming to leverage its large user base to address some of the pain points in the secondhand market. In practice, it has proven to be an optimal trading platform.

First, there are the users. Facebook has a large number of users, and the number of views after posting information is not low. Moreover, most users are young people, so it is relatively easy to communicate with them.

Secondly, there's the cost. I haven't encountered any buyers on Facebook who try to negotiate the price; they basically just buy it after the initial conversation.

Then there's the issue of trust. In secondhand transactions, it's easy for things to go wrong – you chat for ages, agree on a transaction, and then the order never comes through. You might want to buy something on a whim, but find the process too troublesome, especially if the item isn't that valuable. I haven't encountered this problem with Facebook users; those who said they'd come to pick it up always did, which is very reassuring.

Finally, the user experience of Facebook Marketplace is excellent. If an item doesn't sell, you can relist it a week later, so you don't have to repost it.

However, due to the limited user base, it is very difficult to sell large furniture on Facebook. Smaller items such as tables and sofas sell better, since many students or young people who have just started working need these items.

Apps (Letgo, Offerup, 5miles)

This was the first channel I tried, but it wasn't very effective. They all had some common characteristics: the posting experience was excellent, but after posting, either there was no response, or people who inquired would try to negotiate the price, and even after negotiating, there was a high probability they wouldn't actually pick it up.

I want to specifically mention Letgo. Of the three apps, Letgo was the one that helped me sell the most items in my area, but the proportion of inquiries was still very small. Also, it has a feature where if a buyer clicks on your item, it automatically sends you a message saying they're interested, and you reply that they can pick it up. Many people say they didn't know this message was sent. I guess the product manager, under pressure to generate business data, made this ridiculous design; sending a message as soon as a buyer clicks on a product is a bad experience for both buyers and sellers.

OfferUp and 5miles are about the same; the responses to posts are pitifully low, and even among users who do respond, many end up living more than an hour away. I eventually even deleted 5miles altogether. All three apps have bugs to varying degrees; for example, Letgo's notification count is never accurate, always showing 100+ on my end.

Needs Thinking & Summary

Let me start with a summary of my experience. If you're feeling lazy, just use Facebook Marketplace. If you have some energy, you can use Craigslist in conjunction with it. If you want to make a purchase sooner, you can consider those apps, but their effectiveness is minimal.

Selling good items is surprisingly difficult! Even Facebook, the largest social media platform, can't perfectly solve this problem. This initially surprised me, but I later realized it's a kind of unfortunate reality.

First of all, second-hand trading is a no-profit business. The platform can only provide a display platform for buyers and sellers. Not to mention the server costs, the platform maintenance and development costs alone are not low.

At this point, some might suggest adding payment options, which would not only solve the "trust" issue but also ensure smooth transactions for both parties, allowing the platform to earn commissions while improving the user experience. However, upon closer examination, adding payment options would significantly complicate the product. For example, the platform cannot guarantee the success of the "receive" action, thus unsure whether the money should be released to the seller. If problems arise, the platform has no means to provide evidence or handle the situation, unlike eBay, where the shipping process is trackable, allowing for verification of shipment and delivery.

Secondly, there's the issue of dispersion. The US has a dispersed population structure, with people living relatively far apart. There are only a few major cities, and their population share of the market isn't particularly high. This leads to information being scattered across different areas. If there isn't enough content within a certain scope, it's easy for users to perceive it as useless and abandon it. Therefore, promotion and operation costs are not low. Facebook and Craigslist solved this problem by leveraging their existing user base.

The issue of dispersion was mentioned before when discussing Uber.PortalFor Uber, this is a positive development, but it's extremely detrimental to Didi. In the secondhand market, this is very unfavorable for apps in the US, but extremely beneficial for Xianyu (a secondhand marketplace app).

The last problem is that the value of items in secondhand transactions is not high, and users may abandon the transaction at any time. This problem is similar to the deposit or transaction issues mentioned above, but it is a very difficult pain point to solve. Should we collect the deposit or not? Should users still participate? Or should we use a credit system to track users?

Besides the issues mentioned above, there are other problems that haven't been addressed, such as quality control. Current products on the market haven't adequately addressed these pain points, and without profit, it's extremely difficult to succeed. Smaller, more localized transactions, such as those within campuses or work parks, might be easier to achieve because they overcome geographical limitations. There are already subtle relationships between people (students, colleagues), and student groups are a group that is both financially strapped and active – perhaps this is a good entry point.

This siteOriginal articleAll follow "Attribution-NonCommercial-ShareAlike 4.0 License (CC BY-NC-SA 4.0)Please retain the following annotations when sharing or adapting:

Original author:Jake Tao,source:"The US Secondhand Trading Experience – Needs Consideration"

242
0 4 242

Further Reading

Post a reply

Log inYou can only comment after that.

Comment list (4 comments)

  • daisy
    daisy 2019-01-04 12:30

    I really enjoyed what you shared.

  • daisy
    daisy 2019-05-09 07:28

    I really enjoyed what you shared.

  • 陈侃
    Chen Kan 2018-12-24 22:59

    My first job was found on Craigslist.

  • 陈侃
    Chen Kan 2019-05-09 07:28

    My first job was found on Craigslist.

Share this page
Back to top