Thinking of Buying a Secondhand Shop in Australia? Here Are 3 Vital Questions to Ask
Australia’s antique and used goods retailing industry, which includes thrift stores, vintage boutiques, and secondhand shops, generated $4.9 billion in revenue in 2026 across 2,320 enterprises, employing over 12,600 people.
Industry profits reached $412 million, representing an 8.4% profit margin, as consumers increasingly turn to affordable and sustainable alternatives amid cost-of-living pressures. Revenue is forecast to grow by 2.1% annually to 2031, reaching $5.4 billion, supported by improved economic conditions and sustained interest in circular economy shopping.
1. Does the Business Have Diverse Inventory Sources and Reliable Supply?
Why It Matters:
Supply reliability is crucial for maintaining stock variety and profitability. Most secondhand retailers rely on donations, consignments, or buy-back models, while others curate inventory from estate sales or auctions. Businesses that secure consistent, quality stock maintain stronger margins and customer loyalty.
What to Check:
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Supply channels – Charitable operators like Vinnies and Salvos benefit from low acquisition costs via donations, while private resale shops often purchase inventory from individuals or bulk suppliers.
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Stock turnover – High rotation reduces storage needs and ensures fresh displays, key for repeat customers.
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Category balance – Leading stores mix fashion, furniture, books, and collectibles, appealing to both value-driven and niche shoppers.
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Donations vs. direct purchase – Donation-driven stores enjoy higher margins but rely heavily on community participation and local goodwill.
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Quality control – Systems for sorting, cleaning, and pricing donated goods are essential for maintaining brand reputation and profitability.
2. How Strong Is the Business’s Digital Presence and Customer Reach?
Why It Matters:
The rise of online marketplaces and digital resale platforms has transformed secondhand retailing. Businesses that successfully integrate online channels capture a broader audience and higher-value transactions.
What to Check:
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E-commerce integration – Many operators now use omnichannel strategies, listing premium goods through websites or marketplaces like eBay and Facebook Marketplace.
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Social media marketing – Platforms such as Instagram and TikTok are major drivers of demand among younger shoppers seeking thrifted fashion and sustainable finds.
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Brand engagement – Digital-first initiatives, such as Vinnies Finds, have attracted younger audiences through curated vintage collections and online campaigns.
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Technology tools – AI-driven pricing, visual merchandising, and authenticity checks are increasingly being adopted by larger operators to enhance efficiency and trust.
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Customer loyalty – Repeat trade depends on consistent product refreshment, online visibility, and clear communication of sustainability values.
3. Is the Business Positioned for Sustainability and Competitive Growth?
Why It Matters:
The secondhand retail sector is being reshaped by sustainability trends and competition from direct-to-consumer resale platforms. Businesses that clearly communicate their environmental and social impact are best placed to build loyalty and attract new customers.
What to Check:
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Sustainability credentials – Consumers increasingly prefer shops that promote recycling, reuse, and landfill reduction. In 2023–24, Salvo Stores diverted 49 million items from landfill and added 46 new outlets, showcasing strong environmental performance.
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Regulatory compliance – Retailers trading secondhand goods must be registered under the Second-Hand Dealers and Pawnbrokers Act, requiring licensing and record-keeping across most states.
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Competitive positioning – While Cash Converters holds 6.5% market share through scale and brand strength, small independent stores thrive through community engagement and local reputation.
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Consumer sentiment – Sustainability-focused and budget-conscious shoppers now make up a large share of the market, with 86% of Australians buying secondhand goods in 2024.
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Future growth – As inflation eases and interest rates fall, improved consumer confidence will likely sustain steady revenue increases through 2031.
Ready to Invest in a Thriving Secondhand Shop Business?
With strong demand for sustainable, affordable goods and a growing preference for eco-friendly retail, Australia’s secondhand industry continues to thrive across physical and online platforms.
Success depends on consistent stock sourcing, modern digital engagement, and a strong connection with the sustainability values driving today’s shoppers.
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