Final Report Online Exchange Potential Impact
Transcription
Final Report Online Exchange Potential Impact
Final Report Online Exchange Potential Impact A study to develop an understanding of the benefits of online exchange, which in this report refers to the transfer of any items that are not new, through internet exchange sites. Project code: RES144 Research date: July 2010-May 2011 Date: November 2011 WRAP’s vision is a world without waste, where resources are used sustainably. We work with businesses, individuals and communities to help them reap the benefits of reducing waste, developing sustainable products and using resources in an efficient way. Find out more at www.wrap.org.uk Written by: James Batley, Resource Futures Document reference: [e.g. WRAP, 2006, Report Name (WRAP Project TYR009-19. Report prepared by…..Banbury, WRAP] Front cover photography: Computer keyboard WRAP and Resource Futures believe the content of this report to be correct as at the date of writing. However, factors such as prices, levels of recycled content and regulatory requirements are subject to change and users of the report should check with their suppliers to confirm the current situation. In addition, care should be taken in using any of the cost information provided as it is based upon numerous project-specific assumptions (such as scale, location, tender context, etc.). The report does not claim to be exhaustive, nor does it claim to cover all relevant products and specifications available on the market. While steps have been taken to ensure accuracy, WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being inaccurate, incomplete or misleading. It is the responsibility of the potential user of a material or product to consult with the supplier or manufacturer and ascertain whether a particular product will satisfy their specific requirements. The listing or featuring of a particular product or company does not constitute an endorsement by WRAP and WRAP cannot guarantee the performance of individual products or materials. This material is copyrighted. It may be reproduced free of charge subject to the material being accurate and not used in a misleading context. The source of the material must be identified and the copyright status acknowledged. This material must not be used to endorse or used to suggest WRAP’s endorsement of a commercial product or service. For more detail, please refer to WRAP’s Terms & Conditions on its web site: www.wrap.org.uk Executive summary This research was commissioned by WRAP (Waste & Resources Action Programme to find out if it is possible to measure the amount of second hand goods being exchanged online and to develop an understanding of the benefits of online exchange of second hand items. The research has been conducted to coincide with new evidence to prioritise actions that offer the greatest environmental and economic benefits. Exchange of items online has grown rapidly in popularity in recent years and market information has shown an increased diversification of the online exchange market, including websites providing auction facilities, classified ads and forums for offering free exchange. The internet can offer convenience for finding someone to exchange with and a wide audience when trying to sell or exchange goods. This method of exchange, free or otherwise, has become an essential piece in the jigsaw to understand how people pass on items they no longer need but which can still have a useful life. This study therefore addresses the goal of discovering to what extent reuse facilitated via online exchange can be measured in quantity of goods exchanged. The project involved two research stages, the first to monitor online exchange websites and the second comprising a consumer survey. Specific websites were chosen for monitoring, including eBay, Freecycle, Freegle, Preloved and Gumtree as well as business-to-business (b2b) exchange websites Salvo MIE and Materials Exchange UK. Each of these works with a different type of audience in mind and/or different goals in operating the website. While eBay is a multinational business, is well known and has engaged in well recognised advertising campaigns, Freecycle and Freegle are almost entirely run by volunteers and exist to serve local communities and create opportunities for reuse. The two b2b sites included clearly cater for business audiences, while Gumtree and Preloved also operate at a local level but are run in a more commercial way, aiming to make money from their sites while also giving users the opportunity to make money by selling items through classified advertisements. Twelve priority items were selected for monitoring: Sofa Dining table Desk Office chair TV Mobile phones Computers Other IT, e.g. peripherals, printers & laptops Washing machines Leather jacket Cotton shirt Jumper Key conclusions from the monitoring Complete monitoring was possible for eBay, where greater resources on the website and UKwide coverage, together with a clear record of whether a sale completes, made an assessment of the final outcome of an auction possible. An estimate of the amount of exchange taking place via free exchange sites was also made. These sites provide final statuses of ‘received’ or ‘taken’ for many items. It is possible that, having been listed as taken or received, some exchanges do not go through. It is also likely that some users of the sites do not record whether or not they have found a new home for an item and so this information is likely to be partial. The complete data provided by Freegle was particularly helpful for measuring the total volumes being exchanged. It was possible to make an assessment of the amount of exchange occurring via business-tobusiness sites, with some limitations. In some cases listings on these sites seem to be permanent offers with a constant flow of some materials, such as pallets. This meant it was not possible to tell how much was exchanged successfully since the frequency of such exchanges could not be discerned. Volumes of items being exchanged could be estimated (most successfully for eBay, but also with some success for Freegle and the b2b sites) and, using demographic profiling where local information was all that was available, scaled up to the UK. Usage of other sites was Online Exchange Potential Impact 1 monitored, including classified ad websites and Freecycle, but converting this information to actual exchanges and scaling up to the whole of the UK was not possible. It was also possible to estimate from these the overall weight being exchanged, using standard conversion rates, but limited information on some of the items listed meant that confidence in the volume of items is higher than in the weight-based information derived from them. The websites could improve usability and the potential to quantify this valuable information significantly by encouraging information on whether or not a successful exchange has taken place to be completed, and by increasing the detail in listings. The additional detail on the items listed would make weight conversions more accurate and improve the searching and categorising of items when monitoring is being carried out. Factors affecting ability to measure online exchange The methods used for the monitoring differed for each website. This was necessary because of the way the sites were organised. Geographical coverage made a very real difference when it came to gathering data to scale up to provide UK estimates. Most of the websites monitored have a decentralised structure with local areas covered separately and a lack of centrally held data. This made comprehensive monitoring more difficult for some sites than for others. With respect to online monitoring it is difficult to obtain data, particularly in terms of confirming whether advertised items end up being sold or exchanged. Without this data it is difficult to measure the amount of goods being exchanged online and to develop an understanding of the benefits of online exchange. The research would have benefitted from the ability to follow up with some of the users of the websites being monitored. This would have been particularly useful to find out what proportion of exchanges had been completed for free exchange sites and for sites containing classified ads. A follow-up opportunity would also offer an opportunity to capture displacement (i.e. what would have happened to an item had it not been exchanged online?) Consumer survey A consumer survey was undertaken which resulted in 1,092 responses and the data analysed by ACORN category Web users overall tend to be occasional rather than regular users of online exchange websites Small electrical and ‘other IT’ items were the most offered and accepted items from respondents who use the websites; a more eclectic range of items listed under ‘other’ in the survey were also commonly exchanged A wide range of alternative methods of exchange (other than online) were described, with some variation for different items; for example electrical items were more likely to go to a recycling centre whereas textiles would likely be donated to charity or second hand shops. Conclusions This research has offered some useful insight into which types of items seem to exchange successfully online and which have less potential. Generally, electrical and electronic items were successful, with second hand mobile phones showing very high levels of successful sales. Locally organised sites seem to show relatively high success rates with furniture and some of the other large items. Clothing did not seem to sell or exchange as well online as the other types of item looked at. Consumers who are familiar with the internet were generally in favour of online exchange, mentioning convenience and environmental benefits as key reasons for looking for and advertising items online. Online Exchange Potential Impact 2 It is clear that online exchange is contributing to both waste prevention and reuse. There is an opportunity for local organisations and local authorities in particular to promote the use of online exchange websites. This support might be as simple as providing links to exchange websites from their own web pages. Whilst it is unlikely that it is possible for local authorities to quantify the benefits of the exchanges in terms of performance monitoring (i.e. adding to a reuse rate), the local authority will benefit from the exchange if items are prevented from entering the waste stream, through a reduction in overall arisings per household and therefore the cost of collection and disposal. Indeed, if local authorities can encourage online exchange or other non-council routes for unwanted items ‘waste’, bulky items in particular can be displaced from household waste recycling centres and bulky waste collections and prevented from entering the household waste stream. Online Exchange Potential Impact 3 Contents 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Introduction ................................................................................................................................ 6 Definition of Reuse ..................................................................................................................... 7 Data Gathering............................................................................................................................ 7 3.1 Background ........................................................................................................................7 3.2 Geographical Distance for Online Monitoring ..........................................................................8 3.3 Items and products of interest..............................................................................................9 Website Specific Research........................................................................................................ 11 4.1 eBay ................................................................................................................................ 12 4.1.1 Website throughput .............................................................................................. 12 4.1.2 Proportion sold ..................................................................................................... 12 4.2 Free exchange websites ..................................................................................................... 13 4.2.1 Freecycle ............................................................................................................. 13 4.2.2 Freegle ................................................................................................................ 13 4.2.3 Quantifying exchanges on Freegle and Freecycle ..................................................... 14 4.3 Gumtree ........................................................................................................................... 15 4.3.1 Quantifying sales on Gumtree ................................................................................ 16 4.4 Preloved ........................................................................................................................... 16 4.4.1 Quantifying sales on Preloved ................................................................................ 16 4.5 Business to Business (b2b) ................................................................................................. 16 4.5.1 Quantifying b2b exchanges .................................................................................... 17 Consumer Survey ...................................................................................................................... 18 5.1 Confidence Intervals .......................................................................................................... 19 5.2 Bias and Error ................................................................................................................... 20 Monitoring Results.................................................................................................................... 20 6.1 eBay Monitoring Results ..................................................................................................... 20 6.1.1 Priority items added per week ................................................................................ 20 6.1.2 Proportions of items sold ....................................................................................... 22 6.2 Freegle Monitoring Results ................................................................................................. 27 6.3 Gumtree ........................................................................................................................... 32 6.4 Preloved ........................................................................................................................... 34 6.5 Business to Business.......................................................................................................... 36 Consumer Survey Outputs ........................................................................................................ 40 7.1 Users of Online Exchange Websites .................................................................................... 41 7.1.1 Which online exchange websites are used? ............................................................. 41 7.1.2 How have the online exchange sites been used? ...................................................... 42 7.1.3 Reasons for using online exchange sites ................................................................. 43 7.1.4 What items have been exchanged or would be considered for exchange? .................. 43 7.1.5 Offline alternatives to dispose (or recycle/reuse) items ............................................. 45 7.2 Non-users of online exchange websites ............................................................................... 49 7.2.1 Awareness of online exchange sites ........................................................................ 49 7.2.2 Reason for not using online websites ...................................................................... 50 7.2.3 Willingness to use online exchange sites for non-users ............................................. 50 7.2.4 Offline alternatives to exchange or dispose (or recycling/reuse) items for non-users of online exchanges .............................................................................................................. 51 7.3 Comparison of users and non-users .................................................................................... 55 7.4 Additional analysis of alternative disposal routes .................................................................. 57 Opportunities for market development ................................................................................... 62 Observations and conclusions .................................................................................................. 63 9.1 Observations..................................................................................................................... 63 9.1.1 eBay .................................................................................................................... 63 9.1.2 Gumtree .............................................................................................................. 64 9.1.3 Preloved............................................................................................................... 64 9.1.4 Freegle/Freecycle .................................................................................................. 64 9.1.5 Consumer Survey .................................................................................................. 65 9.2 Conclusions ...................................................................................................................... 65 Online Exchange Potential Impact 4 Appendix 1: Weight estimates of items ............................................................................................... 67 Ebay 68 Preloved ....................................................................................................................................... 70 Gumtree ....................................................................................................................................... 71 Freegle 72 Summary ...................................................................................................................................... 73 Appendix 2: Customer Survey Questionnaire ...................................................................................... 78 Acknowledgements The author would like to thank Kat Fletcher and Edward Hibbert (both from Freegle) for providing data for this project. Online Exchange Potential Impact 5 1.0 Introduction This research was commissioned by WRAP (Waste & Resources Action Programme to explore the possibilities for measuring the quantities of goods being exchanged online and to develop an understanding of the benefits of online exchange. Online exchange in this instance refers to the transfer of any items that are not new, such as second hand goods, through internet exchange sites. The definition of reuse in the context of trading raises some interesting questions about how far ‘reuse’ occurs in online exchange of second hand goods. The headline definition of waste is presented in the Waste Framework Directive and the report discusses the definition of reuse in Section 2.0 below. The online community is continuing to grow and there are a number of competing websites offering exchange services. Many user-driven exchange websites operate in the UK, often serving a particular niche group, market or geography. This study focuses on general exchange sites, gathering information on reuse and second hand exchange through a number of national and local websites such as eBay and Freegle. The context to this study is set by an increase in internet-driven sales and awareness that the market share of online sales is continuing to grow and diversify. Recent reports have indicated strong competition to eBay’s market dominance from Amazon (though Amazon is not included in this study), and have charted the rising use of eBay by charity shops. The Charity Retail Sector’s own report showed 47% of charity shops reporting they were using online trading mechanisms in 2006, rising to 66% of respondents in 2010.1 Free exchange sites are also showing concerted growth in use. A report on Freecycle by the University of Northampton (2007) reported just under 1 million registered users of Freecycle at the time. Freecycle itself reported 2.5 million registered users in 2011,2 although it is not clear whether these are unique accounts or whether more than one account may be held by the same person or household. Freegle has fewer registered users and has not been set up as long, but the organisation is also growing; it reports a current membership of 1.2 million.3 Classified ad websites, being structured differently, do not require people to register to use their sites to buy goods. Preloved claims to be the market leader for second hand goods in the UK and reports 3 million unique visitors to its site monthly, with 359,000 listed items recorded in June 2011.4 Many or most of these items would be outside the scope of this report but this gives an indication of the size of the website. Many smaller websites not covered by this report operate within more restricted geographic areas and may receive fewer visitors or have fewer people registered to use them. Overall findings from Verdict Research indicate that online shopping is a much stronger growth area than store-based retail, and that tendency continued through 2009 and 2010. They report that while larger retailers setting up online have partly drive this growth, growth among smaller retailers has been high. It is not clear from their reports whether these trends are reflected through second hand goods as well as for purchases of new items, but the overall trend towards use of online sites for buying, selling and exchanging is clear. The websites included in this study have been monitored and the volume of specific items has been recorded. This monitoring has been aligned to other work investigating reuse being undertaken by WRAP. The volumes have been scaled up, where possible, to estimate the annual throughputs of the websites. 1 Charity Finance, Charity Shops Survey, 2010 2 http://uk.freecycle.org/ last accessed 22nd September 2011 3 http://www.ilovefreegle.org/ last accessed 22nd September 2011 4 http://www.preloved.co.uk/ last accessed 22nd September 2011 Online Exchange Potential Impact 6 This report also describes the outputs of a consumer survey on reuse and online activity (Section 5.0). The survey was carried out on a representative sample of UK households. The aim of the survey was to help investigate the usage of online exchange portals, as well as identifying what offline alternatives are predominantly used. 2.0 Definition of Reuse Reuse can occur within the scope of municipal waste management or outside of it, and this can lead to confusion regarding what does and does not constitute reuse. For reuse to occur within the scope of waste legislation, the item must first meet the definition of waste, i.e. ‘Any substance or object the holder discards, intends to discard or is required to discard’.5 Subsequently, ‘once a substance or object has become waste, it will remain waste until it has been fully recovered and no longer poses a potential threat to the environment or to human health’.6 For items that have entered the waste stream and are therefore defined as waste the main applicable legislation is drawn from the Waste Framework Directive: Reuse means any operation by which products or components that are not waste are used again for the same purpose for which they were conceived.7 Preparing for reuse means checking, cleaning or repairing recovery operations, by which products or components of products that have become waste are prepared so that they can be reused without any other pre-processing. Draft Defra guidance8 clarifies this further, by stating that it is the intention that is important. Where ‘the substance or object is being transferred with the intention that it should continue to be used for its original purpose’, it is not waste, even if it needs some cleaning, checking or repair. Where the item has been discarded as waste (e.g. at a Civic Amenity (CA) Site), it ‘will … remain waste until [it has] been subject to a recovery operation’. This means that preparation for reuse only applies to items which have been discarded. Within this methodology reuse is used to mean reuse and preparation for reuse in line with Defra’s guidance. For clarity, this means that the reuse that will be modelled will be its direct form, e.g. through eBay; its mediated form, e.g. through a charity shop or its waste form, e.g. at a CA site. It includes products from consumers as well as businesses (with particular reference to office furniture). 3.0 Data Gathering 3.1 Background This study focuses on internet-driven exchange and so most of the information it contains has been obtained from online sources; either indirectly by actively monitoring website activity or directly from a service provider. Data have been gathered from the following exchange websites by the following means: 5 WASTE under the Waste Framework Directive (European Directive (WFD) 2006/12/EC), as amended by the new WFD (Directive 2008/98/EC, in force from December 2010). 6 WRAP website http://aggregain.wrap.org.uk/waste_management_regulations/background/definition_of.html 7 Directive 2008/98/EC of the European Parliament 8 Defra (2010) Draft Guidance On The Legal Definition Of Waste And Its Application, http://www.defra.gov.uk/corporate/consult/waste-definition/100118-waste-condoc.pdf Online Exchange Potential Impact 7 eBay (Online Monitoring) Freegle (Service Provider) Freecycle (Online Monitoring) Gumtree (Online Monitoring) Preloved (Online Monitoring) EastEx (Online Monitoring) Waste Exchange UK (Online Monitoring) Salvo MIE (Online Monitoring) The exchange sites investigated in this study were selected on the basis of assumed prevalence in the market place. For example, it is acknowledged that eBay is a widely used commercial portal and that Freecycle and Freegle (which used to be a single operation) are websites with increasing web footprints designed specifically for free exchanges. It should be noted that there are a significant number of websites offering exchange services. The majority are expected to be commercially operated, i.e. items are exchanged in return for payment, and free exchange sites are very much in the minority. eBay could be classified as a household name, with mainstream advertising on television. On the other hand, sites such as Freegle and Freecycle have grown through word of mouth in the context of an increasingly frugal and environmentally aware society. The efficiency of service and the financial capital behind each website is also significantly different; eBay is owned by Google, which is one of the largest brands in the world, whereas Freegle and Freecycle are operated largely by volunteers. Classified adverts on sites such as Gumtree (a subsidiary of eBay) and Preloved also play a significant part in the volume of items exchanged and follow a more traditional pattern of trading displaying small ads. With the important exception of eBay, all of the consumer sites have a local presence, either as a result of their environmental and social credentials (for example, Freegle sites aim to give items to others within their immediate community) or because their posting rules state that offers must be local. Some sites require users to pay a fee to post the advert, and others are free or have a free listings section. 3.2 Geographical distance for online monitoring All of the websites listed above have varying coverage of the UK. eBay is an international organisation with full coverage of the UK, whereas Freegle and Gumtree operate through myriad local groups, with items exchanged in locally based, geographically defined groups. A number of the local groups of each exchange site were monitored as part of this research. Ideally a standard methodology would be used when monitoring each exchange site. However, due to the nature of the sites (i.e. national or geographically specific) and the availability of suitable data, the monitoring methodology differed for each site. For eBay all of the priority items (see Section 3.3) were monitored throughout the UK and the location of the seller was not a factor. For the other exchange sites it was not possible to monitor all of them throughout the UK and therefore the research attempted to investigate a range of area types; thus a number of groups were selected based on their socio-economic profile. As a basis for identifying locations in the UK in which to monitor sites that subdivide into regional or local groups, i.e. Freegle and Gumtree, the social grade of households within UK local authorities (from 2001 Census data) was used. The areas chosen along with related information about the population of the area, average household size and position on the Index of Multiple Deprivation are shown in Table 3.1 (though Indices of Multiple Deprivation for Cardiff County Council and Highland Council are not included, since the indices for each nation in the United Kingdom are not comparable). Authorities were selected based Online Exchange Potential Impact 8 on the distribution of social grade densities across the UK. The selected authorities are a broadly representative cross-section of the UK, based on a socio-demographic gradient. Table 3.1 Selected local authority areas and statistics Local Authority No. of households Average Household Size Total Population IMD 2007 % population social grade D or E South Northamptonshire Council Chichester District Council 35,729 2.45 87,402 6.46 24.4% Percentile of proportion of population that is social grade D or E 10% 53,328 2.25 119,771 12.08 29.0% 30% Cardiff County Council 145,266 2.42 352,160 31.2% 50% Highland Council 108,606 2.20 238,948 36.0% 70% Doncaster MBC 130,465 2.33 304,349 41.5% 90% 30.84 Where possible, exchange groups located within these local authority areas have been used. However, as described in the site-specific elements of Section 4.0, this was not always possible because local groups do not conform to local authority area boundaries. For example, the aim of Freegle is for items to be exchanged in the immediate community so groups are geographically quite small and there may be several groups in different parts of one city. Other sites such as Gumtree are more regional, and have one group for a whole county or a large urban area such as Manchester. Where possible, for this research groups from each site share a geographic base; for instance, a Milton Keynes group has been selected for three of the exchange sites. Where this has not been possible an alternative location was identified. The groups were therefore chosen based on the number of members, closeness of match to the desired socio-economic profile and the number of items listed. For example, Towcester has been chosen to represent South Northamptonshire District Council, and the Highland Council area is substituted by Aberdeenshire West and Central Fife. Whilst the socio-demographic profile of the areas monitored was controlled through selecting a suitable cross-section of area types, the social profile of the site users selling or buying and offering or taking items on the sites monitored is unknown. The socio-economic characteristics of site users were addressed through the consumer survey (see Section 5.0). 3.3 Items and products of interest Online trade and exchange has been increasing steadily over the last decade in line with internet access, and the demand and range of articles traded online is only limited by individual entrepreneurship. Anecdotally, for every item of wide potential use available on the web there are numerous other items which are more difficult to find new homes for, such as a large range of socalled collectibles. The huge variety of items presented for exchange obviously contributes to any benefit of online trading (environmental or commercial) and, although occasionally interesting, they represent noise that must be filtered to permit a focus on specific items or item groups. Therefore the research focused on monitoring a number of priority items, which are also being investigated in other research projects currently being undertaken on behalf of WRAP. The priority items are listed in Table 3.2. The Online Exchange Potential Impact 9 item list also represents common household items that are all classified as consumable. It should be noted that ‘Computers’ only includes desktop computers and excludes laptops. Table 3.2 WRAP list of priority products for reuse Categories Specific products Domestic furniture Sofa Dining table Desk Office chair TV Mobile phones Computers Other IT, e.g. peripherals, printers & laptops Washing machines Leather jacket Cotton shirt Jumper Office furniture Electrical Textiles For each of the exchange websites, the same priority items were monitored. Monitoring the priority items involved a search for key words, e.g. ‘television’ to provide a list of all televisions listed. The search was not more specific, i.e. for a particular size or brand of item. Some refining was undertaken if it was obvious from the picture or the description that the search result was not the actual priority item. This method allowed the monitoring to include results from all of the different categories; for example, a search for ‘cotton shirt’ would result in a list of items from all categories – including men’s, women’s and children’s clothing. For eBay, due to the size of the site and number of listings per day, further refining of the search criteria was required in some instances; for example, for ‘other IT’ or office furniture. For Freegle, two additional categories were introduced: small and large electrical items, at the expense of washing machines. Small electrical items include products such as toasters, food processors and hair dryers and large electrical items include washing machines, fridges and dishwashers. This change facilitated more detailed analysis of the Freegle data, but as the change arose after the monitoring of eBay was completed, it does cause a minor inconsistency in how the results of the monitoring are reported. If small and large electrical item categories had been used for eBay, Gumtree and Preloved, a large number of items would have been reported; however the impact of this in terms of this study’s findings is minimal due to the relative scale of each website’s operation. For example, eBay handles an estimated 1,282 washing machine listings per week versus an estimated one per week on Freegle. Online Exchange Potential Impact 10 Table 3.3 eBay search criteria for priority items WRAP category Search terms Sofa ‘sofa’ (all eBay categories) Dining table ‘dining table’ (all eBay categories) Office desk ‘office desk’ in business, office and industrial then office equipment and supplies Office chair ‘chair’ in business, office and industrial then office equipment and supplies TV ‘television’, refine to ‘televisions’ category (to avoid accessories) Mobile phone refine to ‘mobile and smart phone’ category Computers refine to ‘desktop PCs and monitors’, then ‘desktop PCs’ (to avoid laptops) Other IT no search term, all items under ‘computing’ (including laptops) then ‘PC accessories’ category Washing machine ‘washing machine’ (all eBay categories) Leather jacket ‘leather jacket’ (all eBay categories) Cotton shirt ‘cotton shirt’ (all eBay categories) Jumper ‘jumper’ (all eBay categories) 4.0 Website-Specific Research For each of the sites, the exchange of the prioritised items listed in Table 3.2 was monitored as comprehensively as possible, taking into account the restrictions in information available on each site. eBay was the most comprehensively monitored, as the site allows a user to see if an item sells; and so it was possible to quantify the number of priority items that were listed and subsequently the items sold. For Preloved and Gumtree, items listed are not necessarily removed when sold. For these sites the numbers of items offered at any one time were quantified. Comprehensive data were provided to the research team by Freegle, allowing more in-depth analysis of the exchanges that took place through this site. Freecycle operates using the same model as Freegle, so to supplement the Freegle findings, the number of offers, wanted and received adverts on Freecycle were recorded. Business-to-business sites exchange different materials from the sites mentioned above, with fewer listings of items in the priority areas (if any), because items are commercial in nature (e.g. building rubble, steel, etc). For these sites, the total numbers of all items listed (regardless of category) on a number of sites were recorded during the monitoring exercise. The monitoring and assessment of items exchanged differs between the websites. Therefore the method used to monitor site activity and exchanges has been adjusted on a case-by-case basis. For example, eBay has strict use of some very descriptive and useful categories which facilitates less onerous monitoring than (for example) Freegle, which is much less structured and to a certain extent an information ‘free-for-all’. Proof of exchange is also easier to find/monitor on eBay. For other sites the item offered could be in place for up to 120 days irrespective of a successful exchange; within 120 days, an item may have exchanged and no proof would be evident on the website and ultimately the item could be relisted if no exchange took place. This section describes the details of each website and how this study has attempted to reconcile these difficulties within the overall aims of the research. Online Exchange Potential Impact 11 4.1 eBay eBay is an international website where users can sell, bid for and buy both new and used items. Searches can be refined to used items in the UK. Monitoring was carried out on the priority items to gain an understanding of the turnover of items – both how many are added per week, and how many of these end up being sold. eBay monitoring took place between 21 July and 4 August, including weekend days. 4.1.1 Website throughput eBay is clearly an incredibly large exchange portal: in total, there were 38,789,947 items advertised on eBay when the monitoring took place on 21 July 2010. This is based on the total number of items listed in 25 of the 30 predetermined eBay categories. The five categories excluded (‘Local Services’, ‘Event Tickets’, ‘Holidays and Travel’, ‘Wholesale and Job Lots’ and ‘Everything Else’) were reviewed and the majority of items listed in each were either not actual items (for example, personal services) or bulk items aimed at the business sector. In order to gain an understanding of the turnover of items on the site, the number of each of the priority items added to the site was monitored over one week. A search was conducted for each item and results were then sorted by ‘newly added items’ first. This allowed for the number of items added in the previous 24 hours to be counted. Items can be listed for 1, 3, 5, 7 or 10 days; more if an item is listed as ‘buy it now’. Monitoring was therefore carried out daily so any items listed for just one day would be captured. It should be noted that using this method of monitoring, WRAP classifiable items within the excluded eBay categories are included in the monitoring outputs. This is because, irrespective of eBay category, the eBay search engine is not limited to specific categories. As eBay activity varies from day to day, with certain points in the week being busier than others, carrying this monitoring out for the full week ensured that results were not affected by these changeable levels of activity. The results of this monitoring exercise can then be extrapolated to give general estimates of the number of products listed on eBay per year, although with just one week of monitoring it is not possible to make realistic adjustments for annual variations in throughput. Variations such as spring cleaning and the post-Christmas clear out have not been accounted for in this research and neither have other religious festivals involving gifts, the impacts of house clearances, deaths, or bankruptcy. Monitoring the websites during the summer months (when individuals and families are often on holiday) may also have an impact on the volume of exchanges. These omissions may lead to some degree of underestimation of the total volumes offered and exchanged in a year. However, it has been assumed that any seasonal or event-related fluctuations balance out over a year, and that therefore a full-year estimate can be based on a single week of monitoring. 4.1.2 Proportion sold To estimate the proportion of listed items that actually result in a sale, further monitoring was carried out. This monitoring was done for priority items listed for auction only. A search for each item was conducted and results were sorted by ‘ending soonest’. This meant that items were effectively sorted randomly, and factors such as starting price and item description did not influence the items selected for monitoring. There is some agreement that items sell best at certain times, in particular on Tuesday, Wednesday, Thursday and Sunday evenings,9 with fewer items sold on Friday and Saturday nights when people are more often out, and during the day when many people are at work. To take account of peak and non-peak times, 100 items in each priority category were monitored; half of them were monitored during peak times (Tuesday, Wednesday and Thursday evening) and half were monitored during non-peak times, i.e. weekday afternoons. The aim of this was to ensure that neither peak nor non-peak activity periods would dominate the results. For some categories there were not 9 http://reviews.ebay.co.uk/When-is-the-best-time-to-list-on-ebay_W0QQugidZ10000000012295127 Online Exchange Potential Impact 12 enough items listed during either the busy or quiet periods and therefore monitoring took place over a longer time period until results for 100 items were obtained. It should be noted that ‘buy it now’ items were not included in this monitoring exercise. ‘Buy it now’ items can be sold at any time and cannot be randomised by sorting ‘ending soonest’, so could not be monitored in the same way as auction items. 4.2 Free exchange websites These sites facilitate exchange without compensation (payment). It has been assumed that all items on such sites are being exchanged for reuse when they are exchanged. The free exchange sites present an opportunity to benevolently seek an alternative outlet for unwanted items. The two sites to which this applies and are included in this study are Freecycle and Freegle. Other websites offering items on the basis of free exchange are not unusual but tend to serve niche groups with particular interests or have been developed by local authorities as an alternative to national sites such as Freecycle and Freegle. For these exchange sites it has been possible to monitor activity from specific areas, as the sites are organised into groups which are based on geographical location. These groups are not the same for each site and not all geographic locations are represented on each site. However, groups have been chosen that broadly cover the same overall location. 4.2.1 Freecycle Freecycle is the umbrella name for a network of local groups which users can join through Yahoo! Members of the groups can then offer items to other members or advertise for items that they would like to receive. Other members can then reply to these adverts. No money changes hands and all activity is moderated. Five Freecycle groups were monitored over the course of a week. The chosen Freecycle groups were in Cardiff, Chichester, Doncaster, Inverness and Towcester. Resource Futures became a member of each group and signed up for ‘daily digest’ emails containing details of all items offered, taken and wanted in the group. These posts were recorded over the week for each group in an Excel spreadsheet. The data from Freecycle were obtained for seven days from 11 August 2010. 4.2.2 Freegle Freegle is effectively a competitor of Freecycle and runs the same model by which members of local groups advertise items as offered or wanted. Data have been made available to this study, which has reduced the need to actively monitor selected Freegle groups. These data cover a total of 30 days of listings from the groups specified in Table 4.1. The data supplied cover a period in July and August 2010, which for the purposes of this research has been assumed to be indicative of a typical month. As the research involves estimating a full year’s worth of offers and exchanges from a relatively small dataset, this approximation has been assumed to have no impact on the overall results. Online Exchange Potential Impact 13 Table 4.1 Freegle groups assessed Group Geographic region Aberdeenshire West Central Fife Edinburgh Flintshire Caerphilly Welshpool, Newtown and Montgomery Bognor Greencycle (Brighton) Havant Rotherham Towcester Scotland Wales England 4.2.3 Quantifying exchanges on Freegle and Freecycle Neither of these sites offer any sort of categorisation with listings and the entire process is driven by the use of four key ‘Listing Status’ terms: offered, received, wanted and taken. These terms, along with a basic item description and the location of the item, should appear in the subject of the listings which are held in a forum-style webpage. This makes monitoring for the purposes of this report difficult, as the only way of categorising items is to read each line, identify the item, derive the classification (offered, taken, etc.) and then try and locate a matching pair which would suggest that an exchange has occurred. For example, an ‘offered’ item is commonly followed up by a ‘taken’ entry which contains most of the same text in the subject field. As described in Section 3.3, the item categories used for the Freegle analysis were expanded beyond the WRAP categories and took the form of a series of item-specific subcategories. The most significant of these subcategories fall under the small and large electrical item groups specified by WRAP and these are included in Table 4.2. Online Exchange Potential Impact 14 Table 4.2 Electrical item subcategories Large electrical items Small electrical items Fridge/Fridge-Freezer/Freezer Lighting Large electrical garden tools Video/DVD, Games, Consoles, Digital receivers Hi-fi separates Washing machines/Washer drier Musical instruments (keyboards, organs) Sunbed Microwave ovens Air conditioning/dehumidifying equipment Dishwasher Small electrical garden equipment Fan Cooking equipment Toaster, kettles, food processing equipment Sewing machine Vacuum cleaners Irons Beauty electricals The process of matching pairs of listing statuses relies heavily on the user-supplied information, which rarely conforms to the rules set out for the site. Each listing has a listing status as described above, but how these are paired, i.e. which status listing is the opposite of another, has been assumed based on provisional monitoring of obvious matched pairs. There are four matched pairs: Offered/Taken Wanted/Received Offered/Received Wanted/Taken Although the total number of listings falling under each listing status has been recorded, confirmation of a link between the matched pair combination and successful exchange has not been made. It is possible that a matched pair does not always indicate a successful exchange as an online agreement to make the exchange may prove more difficult to arrange in reality. It is also quite probable that some exchanges take place without either a ‘taken’ or ‘received’ notice being posted. Existing information does not make it possible to establish with greater certainty than this whether exchanges have taken place. 4.3 Gumtree Gumtree is a classified ads website that operates in 60 cities across six countries. Gumtree is the UK’s biggest website for local community advertising 10 and is part of the eBay family. Users can post adverts for a huge range of items and services within their local area. ‘For Sale’ adverts appear on the site for 45 days in London and 120 days elsewhere before expiring. Adverts can be deleted prior to this at any time, or can be renewed using ‘bump up’, which will reset the advert and return it to the top of the advert listings. 10 http://sheffield.gumtree.com/about_us.html Online Exchange Potential Impact 15 4.3.1 Quantifying sales on Gumtree Items are advertised locally, so the numbers of each priority item listed for sale in each of the five chosen areas were recorded. As Towcester, Chichester and Doncaster are not on Gumtree, the closest available areas were used instead, these being Milton Keynes, Portsmouth and Sheffield respectively. There are demographic differences between, for example, Towcester (a small market town in an affluent rural area) and Milton Keynes (a large town with a mixed population). However the Gumtree groups are generally regional or city-wide and therefore it has been necessary to use these alternative locations. The chosen areas of Towcester, Chichester and Doncaster are assumed to fall within the Gumtree groups of Milton Keynes, Portsmouth and Sheffield. We acknowledge that the Gumtree groups may not have the demographic profile of the local authorities listed in Table 3.1, but due to the nature of the website it is not possible to identify a specific socio-economic profile. Other issues associated with monitoring Gumtree listings include the variability of group usage and geographic anomalies of group boundaries. It has not been possible to review the level of usage and socio-demographic profile of users of every group in the UK and so the groups used may not be representative of the UK as a whole. Future research on website usage could incorporate an assessment of site users but this would either have to focus on a relatively small sample and be locally representative, or be a significantly larger research project in order to be representative of the UK. The research that has been conducted is therefore likely to be indicative of website usage rather than representative of usage. The priority item monitoring shows the scale that Gumtree operates on, relative to other sites monitored for this project. It does not, however, show how many items are actually sold through Gumtree. There is no straightforward way to determine if an item has been sold or not; many adverts are left online even after the item has sold and others may be removed early. Gumtree adverts were sampled on 8 September 2010. Gumtree was only monitored for one day because items remain advertised for 30 days; therefore one month of advertised items can be monitored in one day. 4.4 Preloved Preloved is a classified ads website, where users can advertise items for sale. Searches for a specific item will bring up local adverts first, followed by regional ones and then national ones. 4.4.1 Quantifying sales on Preloved Towcester and Chichester are not areas listed on Preloved (the same problem that arose for Gumtree); so Milton Keynes and Portsmouth were used instead as these groups on Preloved appeared to cover Towcester and Chichester. The numbers of each priority item advertised in each of these areas were recorded, but again this is not indicative of how many items were actually sold. Preloved was monitored on 9 September 2010. One day’s monitoring was taken to be sufficient because items remain advertised for 30 days, and therefore one month of advertised items can be monitored in one day. 4.5 Business-to-business (b2b) Business-to-business exchange sites are similar in function to all of the above portals (except eBay), but they serve only the commercial sector. There are a number of providers but the total number of listings available for exchange is much smaller than from the non-commercial sites. This difference is attributable to two core factors: (outsourced) procurement and the need to recoup expenditure. Online Exchange Potential Impact 16 Outsourced procurement refers to the purchasing habits of organisations. Many businesses use a third party to procure particular items such as IT equipment and therefore neither they, nor the company procuring on their behalf, are likely to buy or sell though an online exchange (even if they do source second hand items elsewhere). IT equipment is unlikely to be listed on a b2b free exchange site, as the equipment is often owned on a limited-term contract at the end of which the equipment is returned. One site monitored for this study was the South Yorkshire EastEx portal (www.eastex.org.uk/south) and only 106 items were listed in six months: an average of less than 18 listings per month. This can be compared to Freegle Rotherham, a similar but smaller geographic location, where 18 listings are added every two days and the difference in scale is clearly apparent. Despite the difference in operating area which may have a limited impact on item turnover, the key difference arises from the sheer volume of potential users from the residential sector over those from a commercial background. Furthermore, the larger range of items derived from exchanges within the household sector compared with b2b also has a significant impact on overall volumes and types of items listed. B2b listings tend to be classified-type adverts under a range of categories. Most of the adverts are brief and include contact details which are visible if you are a member of the site. 4.5.1 Quantifying b2b exchanges Due to the overall volume of listings, monitoring of b2b sites was relatively simple. Additionally the majority of listings appeared to be semi-permanent, consisting of repeat listings or regular byproducts from different commercial/ industrial processes. The types of items listed on the b2b sites are very different from those listed on the public sites, and rarely if ever include listing for the priority items to be monitored for this research (see Table 3.2). Many of the items appear to be materials relating to overstock or process by-products, for example quantities of Premix concrete or metallic sludge (Waste Exchange had a listing for hydroxide sludge). Nevertheless, website monitoring for b2b took place between 9 and 20 September 2010. The data collected for b2b covers a much larger geographic area and a much higher proportion of total exchanges than the other sites monitored because of the lower quantities of items changing hands. In some cases, all content on the site has been monitored. Table 4.3 illustrates the different nature of b2b materials compared with WRAP’s list of priority items. The categories listed in italic bold are those which concur to some degree with the WRAP item categories (see Table 3.2); the prevalence of other types of items suggests that b2b waste exchange can apply to a much wider range of commonly classifiable materials and items than would apply to householders and the items they would exchange. The categories also suggest that some of the waste items being exchanged may go on for recycling or another treatment rather than for reuse. For example oils go for re-refining; food waste could go to food banks or otherwise to composting or anaerobic digestion. The categories suggest that there is a basic distinction between potential ‘inputs’ to production/ processes (reagents, chemical liquids) and products (vehicle parts) and ancillary materials (packaging, pallets). To fully understand this very different research area (compared to the household sector) would require a separate exercise to effectively differentiate the categories and the elements that relate to genuine reuse. Online Exchange Potential Impact 17 Table 4.3 Material categories on b2b websites EastEx Waste Exchange UK SalvoMIE Batteries Acids Ash crushed concrete aggregate Building materials Alkalis Hoardings Chemical liquids Construction material / aggregates Metals Drums and containers Container and pallet Paints Electricals and electronics Electronic Plasterboard Furniture and fittings Food waste Plastics Glass and ceramics Glass Soils, Recycled soils and Compost Metals Green waste Various and mixed Oils Metal and metal sludge Pallets Miscellaneous Paper and card Oil and wax Plant and equipment Other chemicals Plastic and rubber Packaging materials Putrescibles Paint and coating Textiles and clothing Paper and cardboard Vehicle parts Plastic and rubber Wood and timber Solvent Miscellaneous Textile and leather Wood 5.0 Consumer Survey A consumer survey was compiled with the aim of gaining further insight into the reasons why consumers do or do not use online exchange portals, as well as the types of items that are being exchanged online. The survey was designed in a multiple choice, easy-to-complete format, and aimed to understand the activity of: Consumers with an online presence that use online exchanges. Those with an online presence who do not use online exchanges. Those who do not have an online presence. The survey was compiled with input from WRAP, covering the themes described in Table 5.1. The questionnaire is included in this report as Appendix 2. A hard copy of the survey was mailed to 43,000 households over three separate mail shots, using data supplied by CACI and including a weblink for respondents to complete the survey online if they preferred. The 43,000 households were stratified according to ACORN, eTypes, age and geographical area in order to be a representative sample of the UK. Online Exchange Potential Impact 18 The survey respondents were firstly asked if they had ever used any of the online exchange sites that were being monitored for this project (eBay, Freecycle, Freegle, Gumtree, Preloved) or any other online exchange sites. This established which of the above types of consumer they were, i.e. whether they had an online presence or not. The survey respondents were then asked about their awareness and frequency of use of each of the sites – i.e. whether they had heard of a site or not, and whether they were an occasional or regular user. Next, respondents who do use online exchanges were asked what they use them for. This question aimed to understand whether people accept, offer or request items. This question was also designed to show whether there were some users who only buy / accept items and some who only sell / offer items; if some people only request items (for example through Freegle and Freecycle); and what proportion will both accept and offer items. Table 5.1 Broad themes of the survey Consumers with online presence Consumers with no online presence Use of sites Awareness of activity Which sites know of / use Which sites Past items offered Reason for no online presence Past items taken Would consider using Frequency of use What types of items Types of items considered The next questions aimed to understand the reasons why consumers use online exchanges, and the reasons why they do not. Respondents were presented with a range of options that they could apply positively or negatively to each site. Aspects that encouraged use included ease of use, personal security, environmental benevolence and bargain hunting, considered alongside reasons that impaired use: the site being difficult to understand, and concern about poor item quality. For future surveys it may be beneficial to include an option to score websites rather than select predetermined reasons for use. For example: on a scale of 1 to 5, how does a website score in terms of personal security? This information could then be used to identify user priorities when choosing which websites to use. To gauge the types of items that consumers are exchanging, the survey respondents were next asked which of the priority items they have either offered, accepted or would consider exchanging online. Finally respondents were asked what offline alternatives they would use to get rid of each of these types of items, for example at the household waste and recycling centre, car boot sale, refuse collection or donated elsewhere. Over 1,253 completed responses were received, with the vast majority being returned by post (rather than via the online portal). 5.1 Confidence intervals From the 1,253 responses and following quality checking of the data, a total of 1,092 valid responses were achieved. This is a reasonable sample size from which to draw generalisations about the target population, as the 95% confidence interval for a result of 50% has a confidence interval of +/-3%. Therefore if 50% of the sample said that they regularly use eBay, then it would be reasonable to assume that between 47% and 53% of UK households regularly use eBay. Standard statistical tests were carried out to explore the differences between ACORN categories. These were T-tests carried out to 95% confidence level. The sample size for each ACORN category is Online Exchange Potential Impact 19 much smaller than 1,100, and has an average size of 218. This has the effect of increasing the confidence interval to +/-7%, and so we can be less sure of the result. We can also be less sure that there are real differences between the results from the ACORN categories. For example if 50% of ACORN 1 respondents (sample size 287), and 55% of ACORN 5 respondents (sample size 198) said that they regularly use eBay, then we could not be confident that in the target population ACORN 1 households behave any differently to ACORN 5 households (as the confidence intervals for each ACORN category overlap). In the most part, this means that the results shown do not have any differences, although they may exhibit statistically significant differences at a lower confidence level (i.e. 90%). 5.2 Bias and error The ability of householders in the sample frame to elect whether they participate in the survey will have led to response bias. It would seem likely that those who responded would be internet or reuse site users, as that is the focus of the survey. No analysis of non-response bias was conducted. As the surveys were self-completed there may have been some respondent error, as a result of misunderstanding the question or terminology used. 6.0 Monitoring Results This section includes the results of the internet monitoring undertaken as part of this research, which are broken down and reviewed at site-specific level. Findings from the consumer survey are included in the following section. In all cases, monitored data has been extrapolated to estimate annual flows through each exchange portal with specific reference to the WRAP list of items previously described. The results presented in this section focus on the total number of items listed, rather than estimates of the total tonnage of items exchanged. Estimated weights of items exchanged on eBay, Gumtree, Preloved and Freegle are included in Appendix 1. Weight estimates have been kept separate from this section, since there is significantly less confidence in the weight estimates, in comparison to estimated numbers of items sold and exchanged. It is problematic to provide corresponding estimates for tonnes of items sold or exchanged with any confidence, essentially due to the often wide range of weights per item for different subcategories of the same category. For example the FRN average weight list includes 13 different entries for televisions, which encompasses both CRT and flat-screen varieties. The different sizes of televisions, coupled with the different types of television, means that the weight can vary from 4.4 kg to 31.0 kg. The average weight across the range of average weights for the 13 different types of televisions is 14.4 kg per item. However, it is problematic to apply this figure as an average weight for televisions, since the distribution of weights (i.e. the relative numbers of items of lower and higher weights) is not known, due to a lack of knowledge about subcategories of items (in this example relating to different types of televisions). Moreover, this method of applying average weights per item in order to arrive at a total estimated tonnage can obscure the true success of exchange sites. Measures of success that are more valid might arguably be related to the number of items exchanged, awareness of online exchange communities and levels of usage of their sites. 6.1 eBay monitoring results 6.1.1 Priority items added per week The total numbers of each ‘priority’ item added to eBay for auction over the course of one week throughout the UK are shown in Table 6.1. The results for the one week that the monitoring took place have been extrapolated to give an estimate of the numbers of these items added to eBay each year, on the basis of the assumption that that one week can be taken as typical. A repeat of this exercise over a number of other weeks would improve confidence in the estimates and make it Online Exchange Potential Impact 20 possible to identify errors. However, in this case the exercise was to find out whether monitoring could effectively be carried out and, if so, to provide an indication of what the results might be. Table 6.1 Number of items added to eBay in one week Item Total added in 1 week 4,210 Total for year (rounded estimate) 218,900 Dining table 3,364 174,900 Office desk 207 10,800 Office chair 678 35,300 TV 4,263 221,700 Mobile phone 22,794 1,185,300 962 50,000 Other IT 3,305 171,900 Washing machine 1,071 55,700 Leather jacket 3,995 207,700 Cotton shirt 17,236 896,300 Jumper 19,803 1,029,800 Sofa Computers The largest category in terms of total number of items added per week is shown as mobile phones, followed by jumpers and cotton shirts. The smallest categories were in the office furniture category – ‘office desks’ was the smallest item category, with office chairs the second smallest. Figure 6.1 presents these findings in chart form. Figure 6.1 Total items added in one week on eBay 25,000 Number of items added 20,000 15,000 10,000 5,000 0 Online Exchange Potential Impact 21 6.1.2 Proportions of items sold The proportions of each type of item listed that are then sold are illustrated in Figure 6.2. The figure suggests that the majority of the mobile phones advertised on eBay are actually sold, whereas the turnover for other items is much lower. For example, whilst large quantities of clothing are advertised, the proportion of cotton shirts and jumpers sold is much lower. Figure 6.2 Proportion of items sold on eBay 90% 80% 70% % sold 60% 50% 40% 30% 20% 10% 0% Looking in further detail at the proportion of items sold, Figure 6.3 shows the average final bid price for each type of item. Online Exchange Potential Impact 22 Figure 6.3 Average final bid price of items sold on eBay £120.00 Average final bid (£) £100.00 £80.00 £60.00 £40.00 £20.00 £0.00 Cotton shirts and jumpers have the lowest average final bid, both in the region of £5. Sofas actually have the highest average final bid price of approximately £110. Mobile phones have an average final selling price of approximately £79. Figure 6.4 Average final bid for sold items and average starting bid of unsold items on eBay £180.00 £160.00 £140.00 Cost (£) £120.00 £100.00 £80.00 Average final bid for sold items £60.00 £40.00 £20.00 £0.00 Average starting price of unsold items Online Exchange Potential Impact 23 Comparing the average final bid price for items that have sold with the average starting price of unsold items reveals that in many cases unsold items have been listed with a starting price higher than the average selling price. The only categories where average starting prices for unsold items were lower than the average sales price were ‘office chairs’ and ‘other IT’. This could suggest that these items are less popular than other items on eBay, as some were not selling even when the seller was asking for a lower price than the average person was willing to pay. It seems from these results that many sellers overestimated the value of their items, washing machines in particular, with some sellers asking for a starting price of over double what the average person pays. This suggests that these sellers do not allow adequately for depreciation. There is potentially an additional element of risk in buying washing machines due to the combination of water and electricity in a single machine, although Figure 6.2 shows that washing machines listed are more likely to sell than most other types of item. Figure 6.5 compares the proportion of each type of item sold with their average final bid. It can be seen from the graph that the higher-priced items generally sell better than the lower-priced ones. For example, mobile phones and washing machines are both high-priced items that sold the best during this monitoring exercise. An exception to this pattern is sofas, which have a high average final price but did not sell as well as the other highly priced items. Figure 6.5 Proportion of items sold by average final bid on eBay £120.00 Average final bid £100.00 £80.00 £60.00 £40.00 £20.00 £0.00 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Proportion sold Figure 6.6 shows the proportion of items sold by the average number listed, derived from the weekly monitoring of each type of item. The graph shows that mobile phones again are an important eBay item, with the highest proportion of sales but also a very high number listed on the site at any one time. Whilst there are a very high number of jumpers and cotton shirts listed on eBay, the proportion of sales of these items were the lowest of all the items that were monitored. Online Exchange Potential Impact 24 Figure 6.6 Proportion sold by average number listed on eBay 25000 Jumper Cotton shirt Average number listed 20000 Mobile phone 15000 10000 Leather jacket Other IT Sofa Dining table 5000 Office chair Desk 0 0% 10% 20% 30% 40% 50% TV Washing machine Computer 60% 70% 80% 90% Proportion sold Comparing the numbers of items added with the proportion of items sold produces an estimate of the number of each item sold each week. Whilst Figure 6.6 suggests that proportionately cotton shirts and jumpers do not sell well on eBay compared with other items, Table 6.2 and Figure 6.7 show that a relatively high number of these items are added each week and that consequently shirts and jumpers combined are second only to mobile phones in estimated number of items sold. Online Exchange Potential Impact 25 Table 6.2 Estimated numbers of items actually sold on eBay in one week Item Sofa 4,210 47% Estimated number sold per week 1,979 Dining table 3,364 46% 1,547 Office desk 207 38% 79 Office chair 678 42% 285 4,263 67% 2,856 22,794 82% 18,691 962 57% 548 Other IT 3,305 39% 1,289 Washing machine 1,071 79% 846 Leather jacket 3,995 49% 1,958 Cotton shirt 17,236 31% 5,343 Jumper 19,803 34% 6,733 TV Mobile phone Computers* Total added in 1 week Proportion sold * The computers category does not include laptops, which are thought to be exchanged at a much higher rate. Laptops are included under the ‘Other IT’ category but not separately identified. It can be seen that the number of mobile phones sold each week is significantly higher than for any other category, with an estimated 18,700 items sold through eBay in the UK every week. This is based on items listed under the eBay category ‘Mobile and Smart Phones’, which excludes mobile phone accessories but includes sim card-only ‘deals’. About 7,000 jumpers and 5,000 cotton shirts are sold each week. Just under 3,000 televisions are sold each week, with about 2,000 each of sofas and leather jackets sold weekly. Finally the number of unsold items that the seller relisted was recorded. This was noted approximately 24 hours after the end of the auction, in order to give the seller enough time to log onto eBay and list the item for auction once again should they wish. Figure 6.7 shows the number of items that did not sell and the number of these items that the sellers relisted. The figure also shows the proportion of unsold items that were relisted. High proportions of jumpers, computers, dining tables, mobile phones and cotton shirts are relisted. For jumpers, cotton shirts and mobile phones there are large numbers of items advertised on eBay, so it may be that supply outstrips demand for these items. It could also be the case that these are the sort of items that sellers are not in a hurry to get rid of (because they are small and do not take up space) so they do not mind waiting for the items to sell. For both dining tables and computers, postage is not often an option and these items need to be collected in person. This substantially restricts the number of interested potential buyers to the local area, so these items may take longer to sell. As mentioned in Section 4.1.2, ‘buy it now’ items were not monitored as part of this exercise. Sale of these items cannot be monitored in the same way as auction items, as they can sell at any time; and ‘buy it now’ items that have been on eBay for longer periods are likely to be less desirable items. In order to avoid confusion when processing the sales results, auction items that were also listed as ‘buy it now’ were avoided. Online Exchange Potential Impact 26 Figure 6.7 Numbers of items unsold and relisted on eBay 80 Number / % of items 70 60 50 40 30 20 10 0 Number unsold 6.2 Number relisted Proportion relisted (%) Freegle monitoring results The following tables and figures illustrate the quantities of items listed on Freegle over the monitoring period. For Freegle, this meant monitoring over a total of 30 days between 9 July and 9 August 2010 for all 11 groups, resulting in nearly 7,000 listings. This information was supplied by Freegle through software developed (by Freegle) to analyse the listings. This data significantly reduced the resources required to monitor the site, yet presented a different problem in that significant quantities of data required a large-scale clean-up exercise. The data included poorly listed items, inconsistent approach and spelling errors. Despite this, the analysis of Freegle has produced some very interesting results, although it should be noted that approximately half of the listings provided by Freegle either did not fall into an item category or could not be classified because of listing discrepancies. Items that did not match an item category but were identifiable are included in the research outputs described below. For Freegle, it has been relatively easy to quantify the listing status (offered, taken, etc.) as this should appear at the front of every listing. Table 6.3 shows the total number of listings under each status for Freegle from the month of data provided. Throughout the monitoring period only one item was withdrawn (from the Rotherham Freegle group). Online Exchange Potential Impact 27 Table 6.3 Freegle listing status classification Group (Freegle) Offered Taken Wanted Received Aberdeenshire West 181 44 143 7 Bognor 217 107 187 7 Caerphilly 192 63 117 2 Central Fife 218 86 241 11 Edinburgh 1,117 400 631 23 Flintshire 182 52 216 8 Green Cycle (Brighton) 618 176 375 9 Havant 68 25 59 0 Rotherham 236 80 250 5 Towcester 46 15 38 0 Welshpool, Newtown and Montgomery 178 46 168 6 3,253 1,094 2,425 78 Total A total of 6,851 listings were made and it is clear from the totals above that there is no direct correlation between the listings status types. For example, in an ideal situation the number of taken items would approximate to the number of offered items. One possible reason for this is the defined period of data and not being able to isolate the listings that referred only to items arising within the period. Table 6.4 illustrates how successful the classification of items listed was and shows that only 55% of items listed (irrespective of listing status) are covered by the focused WRAP item classification or the broader FRN-based classification system. The table also shows how many exchanges were completed and how many of those exchanges were of items found in either of the items lists. Out of 6,851 listings, 614 listings were matched with both required elements of the listing status. This takes into consideration the full range of options on listings status (Offered/Received, Offered/Taken, Wanted/Received and Wanted/Taken). It should be noted that it has not been possible to identify all of the duplicates, listings that include more than one item, listings that include spelling errors or listings that have not included a specific item within the subject line. In order to account for all such entries it would be necessary to review every listing, and this was not possible given the timescales and resources allocated to this study. Furthermore, despite being a condition of use of the site, the posting of Taken and Received notes is not actively undertaken. This could lead to an underestimation of the actual number of successful exchanges. Further research may be required to identify actual successful exchanges and this may require contacting site users. Figure 6.8 shows the total number of listings per category with clear peaks for large electrical items, small electrical items and other IT. Where the items have been listed within a wider category, the number of items within that category has been listed. It should be noted that ‘other IT’ also includes games consoles and software. Figure 6.9 shows the same information as Figure 6.8 broken down by the individual groups monitored. Online Exchange Potential Impact 28 Table 6.4 Freegle item classification summary Group (Freegle) Total Listings Total Listings Classified (WRAP & FRN) Classified (WRAP) Classified (FRN) Total Exchanged Total Categorised Exchanges (WRAP & FRN) Aberdeenshire West 375 213 87 164 22 15 Bognor 518 303 109 247 45 26 Caerphilly 374 195 66 160 38 18 Central Fife 556 322 110 246 59 38 Edinburgh 2,171 1,212 515 916 268 149 Flintshire 458 210 67 181 11 9 1,178 645 242 499 96 54 Havant 152 84 24 71 9 4 Rotherham 572 326 95 274 43 25 Towcester 99 66 18 53 9 8 Welshpool, Newtown and Montgomery 398 217 88 168 14 8 6,851 3,793 1,421 2,979 614 354 Green Cycle (Brighton) Total Figure 6.8 Number of items listed on Freegle using the WRAP classification 400 350 Number of Items 300 250 200 150 100 50 0 WRAP Item Category Online Exchange Potential Impact 29 Figure 6.9 Items listed per group on Freegle using WRAP classification 600 Jumper shirt 500 Leather jacket Other IT (printers, monitors, mice, consoles, software) 400 Computer Number of Items Mobile Phone TV 300 Small electrical items (toaster, food processor, hairdryer) Large electrical items (fridge, washing machine) 200 100 0 WRAP Item Category Online Exchange Potential Impact 30 Figure 6.10 Items exchanged on Freegle using WRAP classification A detailed analysis of Freecycle has not been possible because (unlike Freegle) data have not been provided by the service provider. Therefore Freecycle has been monitored in a similar way to the other exchange sites, by actually gathering listings as they became available over a much shorter period of time and from a much smaller number of groups. However as Freegle and Freecycle are very similar in their operation, we can assume that the types of items listed are broadly similar. Table 6.5 shows the quantities of items listed on Freecycle. Online Exchange Potential Impact 31 Table 6.5 Freecycle listing status classification Group (Freecycle) Offered Taken Wanted Received Cardiff 428 183 250 11 Chichester 119 38 90 2 Inverness 105 34 95 3 Doncaster 66 44 43 7 Towcester 5 5 14 1 723 304 492 24 Total 6.3 Gumtree The total number of each of the priority items being advertised regionally on Gumtree was recorded and is shown in Table 6.5. Table 6.5 Priority items being advertised on Gumtree Item Milton Keynes 45 Portsmouth Cardiff Sheffield Inverness Total 170 364 227 148 954 Dining table 19 60 236 144 34 493 Office desk 15 53 75 66 28 237 Office chair 11 17 46 14 13 101 Television 74 230 511 413 134 1,362 Mobile phone 119 209 967 595 83 1,973 Computers 19 72 268 159 57 575 Other IT 31 61 168 50 71 381 Washing machine 9 74 109 59 18 269 Leather jacket 1 6 14 14 6 41 Cotton shirt 7 18 88 44 16 173 Jumper 2 3 8 9 0 22 Sofa Once again mobile phones feature highly amongst items being exchanged, with 967 adverts in the Cardiff area and 595 in Sheffield. Large quantities of televisions were also advertised through Gumtree, with 511 in Cardiff and 412 in Sheffield; and relatively high numbers of sofas. Very few leather jackets or jumpers are advertised on Gumtree, and office furniture did not feature as highly as household furniture. These findings can be seen in Figure 6.11. Online Exchange Potential Impact 32 Figure 6.11 Total numbers of advertisements for each type of item across all regions on Gumtree 2000 Total number of advertisements 1800 1600 1400 1200 1000 800 600 400 200 0 Cardiff and Sheffield are the most active Gumtree regions, with Cardiff having 2,854 priority item adverts and Sheffield 1,794. Portsmouth had 973 adverts, and Inverness 608 during the period monitored. Activity in Milton Keynes was substantially lower with just 352 adverts in total. The number of adverts for each type of item in the different regions is shown in Figure 6.12. Adverts for sofas and televisions were most common in Inverness, and televisions were most common in Portsmouth. In Milton Keynes, Cardiff and Sheffield, mobile phones were the most commonly advertised item. Adverts for office equipment and textiles were low across all areas. Online Exchange Potential Impact 33 Figure 6.12 Total numbers of adverts for each type of item across all areas on Gumtree 1000 900 Total number of advertisements 800 700 600 500 400 300 200 100 0 Milton Keynes 6.4 Portsmouth Cardiff Sheffield Inverness Preloved Activity on Preloved is much lower than that on Gumtree, with just 163 adverts in total for all priority items across all five areas. Table 6.6 shows the number of adverts for each item in each area. The most adverts found for any search was for mobile phones in Doncaster, for which 17 adverts were listed. In many cases just one or two adverts appeared for each search, with some searches yielding no results at all in that area. In particular there is very little Preloved activity in Inverness; out of all the searches conducted for priority items, just three adverts were returned (for two computers and one leather jacket). Online Exchange Potential Impact 34 Table 6.6 Total adverts for priority items on each area on Preloved Item Milton Keynes Portsmouth Cardiff Doncaster Inverness Totals Sofa 8 5 5 5 0 23 Dining table 1 8 1 12 0 22 Office desk 1 2 0 1 0 4 Office chair 1 1 0 2 0 4 Television 8 4 4 1 0 17 12 5 4 17 0 38 Computers 1 0 1 1 2 5 Other IT 5 5 0 2 0 12 Washing machine 0 2 0 3 0 5 Leather jacket 7 2 1 4 1 15 Cotton shirt 0 0 0 12 0 12 Jumper 0 3 0 3 0 6 Mobile phone As can be seen from Figure 6.13, mobile phones are the most popular item posted on Preloved, followed by sofas and then dining tables. The regional aspect of Preloved may make it a better outlet for items that cannot be sent via Royal Mail. Again, there are fewest adverts for office equipment, and low numbers of ads for computers and washing machines. Figure 6.13 Total numbers of adverts for all items across all areas on Preloved 40 Total Number of Adverts 35 30 25 20 15 10 5 0 Online Exchange Potential Impact 35 Doncaster is the most active area on Preloved, with a total of 63 adverts appearing for the priority items. Milton Keynes and Portsmouth are also active, with 44 and 37 adverts respectively. In Cardiff there were 16 adverts in total and in Inverness just 3. The regional differences can be seen in Figure 6.14. Figure 6.14 Total numbers of adverts for each type of item on Preloved 18 16 Number of adverts 14 12 10 8 6 4 2 0 Milton Keynes Portsmouth Cardiff Doncaster Inverness For Preloved (as for Gumtree) it was not possible to monitor successful exchanges using information obtained from the website, only the number of adverts placed. It could be assumed that similar success rates for exchange were achieved with items on Preloved as on the other free exchange sites listed (Freegle and Freecycle); although lower overall use of the site suggests this might not necessarily be the case. To investigate how much exchange is occurring on Preloved (as well as the other regional exchange sites) it would be necessary to actually contact users of the website who had placed the advert and ask them (perhaps two or three weeks after placing it) if the exchange went ahead. 6.5 Business-to-Business B2b exchange websites are growing steadily in number and use, but there appears to be a different set of drivers compared with domestic exchange sites. This is most apparent in the range of materials and classification of materials offered. As discussed in Section 4.5, most of the WRAP- and FRN-based lists are irrelevant to b2b exchange and therefore the monitoring of b2b websites has been based on the item categories used within those sites. Where possible items that matched the lists provided by WRAP and FRN were monitored; these include items such as IT peripherals and items of furniture. Online Exchange Potential Impact 36 Table 4.3 (in Section 4.5) lists the material categories found on each of the above sites and highlighted (in italics) are the categories that could potentially be aligned with the WRAP-based list and the FRN-based list if required. Table 6.7 contains a review of all the items listed on EastEx, irrespective of the regional location of arising. A total of 534 items were listed and the vast majority of these are always present on the site with no evidence of exchange. The items all appear to be regular by-products of contributors’ processes. Table 6.7 EastEx total listings per category Category Batteries Total Listings 1 Category Total Listings Pallets 41 Building materials 16 Paper and card 58 Chemical liquids 12 Plant and equipment 7 Drums and containers 21 Plastic and rubber Electricals and electronics 15 Putrescibles 2 Furniture and fittings 33 Textiles and clothing 55 Glass and ceramics 28 Vehicle parts 10 Metals 0 Wood and timber 64 Oils 5 Miscellaneous 55 111 Whereas non-commercial exchange sites (non-b2b) have a relatively high turnover of listings and items, the b2b sites appear to have a significant volume of constant listings. This is due to the large proportion of by-products listed which are produced at a steady rate. For example, one member of EastEx appears to have a constant supply of pallets which are listed on EastEx (and potentially other b2b sites), and the listing does not change irrespective of the rate of valid exchange. This means proving the quantity of exchange is a difficult task and would require direct contact with producers, which was not done for this study. Table 6.8 shows the total listings currently available on SalvoMIE for England. This site is clearly a small player in the sector, though this is unsurprising as it concentrates on unused raw materials. Construction waste is covered by a wealth of regulation that could limit transfer and therefore the total number of listings appearing on Salvo MIE. The cost of haulage is also likely to be very high in relation to the value of the item listed. The classic situation with business material exchange systems (online or otherwise) is that they have relatively short lifespans. In the first period, many exchanges occur that put ‘producers’ in contact with ‘users’; once these links have been established, the transaction continues in private, in a direct b2b manner. Thus it is highly likely that the b2b sites monitored, if running for extended periods, are left with more difficult materials that cannot be so readily exchanged. Online Exchange Potential Impact 37 Table 6.8 Salvo MIE – total listings across England Category England Concrete and recycled aggregate 18 Hoardings 1 Metals 1 Paints 2 Plasterboard 1 Plastics 2 Soils, Recycled soils and Compost 1 Various and mixed 20 Total 46 In Scotland, Wales and Northern Ireland, only two listings were made and these were both in Scotland and both under ‘Various and mixed’. Waste Exchange UK provides for exchange of a much wider range of materials and product types. It has a large number of listings across a wide range of categories and some recognition outside England. The listings appear static, often being repeated every month as part of ongoing work or processes. Online Exchange Potential Impact 38 Table 6.9 Waste Exchange UK total listings per category Category England Scotland Wales Acids 15 0 3 Northern Ireland 1 Alkalis 4 1 3 0 Construction Material / Aggregates 58 3 3 0 Container and Pallet 44 1 0 1 Electronic 20 1 0 0 Food Waste 25 0 0 0 Glass 35 0 0 2 Green Waste 10 0 0 1 Metal and Metal Sludge 60 2 0 0 Miscellaneous 71 0 1 2 Oil and Wax 21 0 0 0 Other Chemicals 22 0 0 0 Packaging Materials 83 3 2 3 Paint and Coating 20 1 0 0 Paper and Cardboard 145 0 4 0 Plastic and Rubber 127 2 1 3 Solvent 12 0 0 0 Textile and Leather 23 1 0 0 Wood 65 1 0 1 Total 860 16 17 14 One observation of the national listings on Waste Exchange UK is that the vast majority are in Gloucestershire (518 out of 907), which seems best explained by the fact that the site is advertised through the Gloucestershire County Council website, along with a large selection of other exchange portals and providers.11 The website originates and is still based in Stroud. There would seem to have been little national take-up so far but its presence on the County Council’s website suggests good local recognition can increase use. It is not known if other local authorities promote sites such as Waste Exchange UK. 11 http://www.gloucestershire.gov.uk/index.cfm?articleid=5250 Online Exchange Potential Impact 39 7.0 Consumer Survey Outputs This section describes the outputs from the consumer survey. This part of the research was conducted to provide supplementary evidence to better explain consumer behaviour relating to online exchange. In particular, it was designed to learn where items may be taken for disposal, or how they may be exchanged if they are not being exchanged online. Questions were also asked to try and understand the levels of web usage and use of the websites in focus, as well as other websites not included in the monitoring work. The sample profile of respondents in each ACORN category is shown in Table 7.1. Table 7.1 Respondents split by ACORN ACORN Category Number of respondents Base Percentage of respondents 1,092 Percentage split of UK 100% ACORN 1 287 26% 24% ACORN 2 180 16% 13% ACORN 3 295 27% 28% ACORN 4 132 12% 13% ACORN 5 198 18% 22% Responses were grouped according to whether or not they could access the internet, and whether they were users of online exchange websites. Table 7.2 shows the breakdown of responses for all respondents by internet use and use of exchange websites. The analysis of the survey in the following sections has split the respondents into two groups: those who use online exchange websites (583 respondents) and those who do not (509 respondents). Table 7.2 Use of online exchange sites and access to an internet connection Do you have an internet connection? Have you ever used an online exchange website? Yes No Base % Yes 582 53% 188 17% 770 71 No 1 0% 321 29% 322 29 583 53% 509 47% 1,092 100 Base It can be seen that the majority of respondents do have an internet connection and have used an online exchange website (53%). The survey obtained responses from 321 householders (29%) who do not have access to the internet and do not use online exchange websites. This figure correlates well with national data from the Online Exchange Potential Impact 40 Office of National Statistics (ONS), which states that there were 19.2 million households with an internet connection in 2010, representing 73% of households. Whilst we acknowledge there might have been bias as a result of a lower response rate from those who feel that the survey does not apply to them, the statistic from the ONS would indicate that this has not been the case. Table 7.3 shows how many people in each ACORN category stated that they use online exchange websites. Table 7.3 Use of online exchange sites ACORN category All Base 1 2 3 4 5 1,092 287 180 295 132 198 Yes 53% 55% 66% 54% 51% 41% No 47% 45% 34% 46% 49% 59% Significance (result is significantly different from other ACORN results) n/a ACORN 1 ACORN 2 ACORN 1 ACORN 2 ACORN 3 ACORN 2 ACORN 2 ACORN 3 ACORN 4 ACORN 5 ACORN 5 ACORN 5 Less affluent households in ACORN group 5 are statistically least likely to have used exchange websites – only 41% in this group have used an exchange website. ACORN group 2 shows the highest level of usage at 66%, significantly more than other groups. ACORN group 2 households are generally younger professionals and students, which explains the high level of internet access. The significance row in Table 7.3 shows which results are significantly different from others based on a statistical T-test. The number shown refers to the ACORN category for which the sample result is significantly different. However, for many of the results shown in the following sections, there are no significant differences between ACORN groups (at a 95% confidence level), which is due to the smaller sample sizes once responses to individual questions are broken down by group. 7.1 Users of online exchange websites This section shows the results of the group of 583 respondents who said that they have used exchange websites. The questions relate to their awareness and use of the sites, as well as the ways in which they use them, reasons why and the types of item they would willingly exchange. 7.1.1 Which online exchange websites are used? Respondents who do use online exchange sites were asked about their awareness and use of such sites. The consumer exchange sites monitored for this report were asked about directly: eBay, Freecycle, Freegle, Gumtree and Preloved. Respondents were also able to give an ‘other’ answer. Across all ACORN groups, respondents tend to be occasional rather than regular users for all sites, including eBay. People are clearly very aware of the eBay brand and it had the highest stated use (91% of respondents use it regularly or occasionally). Preloved and Freegle were the least used sites (12% and 6% using them, respectively), and had the lowest levels of awareness among respondents. Online Exchange Potential Impact 41 Freecycle (37%) and Gumtree (29%) had reasonable levels of reported use by respondents, though it has been previously pointed out that those using exchange websites may also have been more likely to fill in the questionnaire as they would feel it relates to them. Only 69 respondents said they use other exchange websites, and only 40 people specified which website that was, of which Greencycle, Friday free adverts, and Amazon were the most mentioned. Clearly the higher awareness and use of eBay by respondents helps explain the results from the monitoring, so that the site most people are using is more likely to see a higher flow of second hand goods through exchanges arranged on it. 7.1.2 How have the online exchange sites been used? The people who use each online exchange site were asked how they used the sites: was it for getting hold of items (accepting or buying), offering or selling items, requesting items or a combination? The results are presented in Figure 7.1. Figure 7.1 How online exchange sites are used 80% Requesting items Offering and some accepting Offering only Accepting with some offering Accepting only 70% 60% 50% 40% 30% 20% 10% eBay Freecycle Freegle Gumtree requesting offering accepting requesting offering accepting requesting offering accepting requesting offering accepting requesting offering accepting 0% Preloved There is a pattern here which seems to show that people are more willing to receive something second hand if they have to pay for it. Free items (e.g. on Freecycle and Freegle) seem to be less tempting and those sites are used more by people wanting to give things away. For eBay and Preloved (where items are sold) there are more people accepting items than offering them. For Freecycle and Freegle (free items websites) there are more people offering items than accepting them. For Gumtree, which has a mix of free items and items for sale, there are more equal numbers of people offering and accepting. Online Exchange Potential Impact 42 eBay is used by 37% of users to accept items only, whereas just 8% of users only offer items. Ten percent of respondents said that they use the website to request items, even though this is not a feature of eBay. This compares with 30% of users requesting items through Freegle, where this is possible. This indicates that there may be an interpretation issue regarding the question. The users of Freecycle mainly offer items (73% of respondents) rather than accept items (29% in total). Of the 58 users of Freegle, 74% use it solely or mainly to offer items, and 36% to solely or mainly accept items. Users of Gumtree have 42% accepting items and 47% offering. On Preloved, of the 38 users, 24% accept items only and 13% offer items only. 7.1.3 Reasons for using online exchange sites Respondents were asked to note the reasons why they do or do not use each of the online exchange sites. The complexity of the structure of the question has made it difficult to analyse, and the results were ultimately inconclusive. 7.1.4 What items have been exchanged or would be considered for exchange? This question focused on what items have been exchanged or accepted online and what items would be considered when exchanging online (Figure 7.2). The same list of items was used as for the monitoring, described in Section 3.3. Online Exchange Potential Impact 43 Figure 7.2 Items exchanged online by users of online exchanges 300 Offered Accepted 250 Number of Responses Would consider 200 150 100 50 0 Items The items reported as most likely to have been offered and received were small electrical items, computer peripherals, and ‘other items’, which covered a wide variety of items (the most reported being toys, furniture, DVDs/CDs, bikes and books). Televisions and mobile phones had also been offered by more respondents than other items. Least likely to be offered or received were leather jackets, dining tables, desks and office chairs. Overall there were more offered items than received items, as one would expect since not all offered items will be accepted. Some types of item were more likely to have been received than offered (other IT, cotton shirts, jumpers and office chairs), which provides some evidence of the level of demand for certain items. This may also be indicative of which items are most searched for by site users. Respondents were also asked if they would consider exchanging each type of item online. Aside from ‘other items’ (as respondents were less likely to think of ‘other items’ to add to the list), it was more likely that respondents would consider exchanging an item that they had previously exchanged. Here the gap between what they have already exchanged and what they would consider might be taken to represent the ‘potential’ for that type of item, at least in terms of crudely what respondents would be willing to do (and without attempting to quantify the likelihood of such an exchange actually taking place). In these terms, Figure 7.2 suggests that the greatest ‘potential’ lies with online exchange of furniture. Respondents also appear willing to exchange leather jackets and large electrical items more Online Exchange Potential Impact 44 than they already do. There is less untapped potential with small electrical items and ‘other IT’, where exchange of items is already taking place quite successfully. Further investigation of the level of displacement (items diverted from the waste stream through exchange) is presented in Section 7.4. 7.1.5 Offline alternatives to dispose (or recycle/reuse) items Respondents were asked what they would do with items that they would not exchange online. For each item more than one route of disposal could be selected; hence it is not possible to tell which route of disposal they would have prioritised. This also means that it has not been possible to determine a displacement rate from other reuse options. There are various other reasons why a survey such as this is not able to accurately determine displacement. Firstly, options such as bulky waste collections and use of household waste recycling centres (HWRCs) do not readily allow analysis that determines whether items disposed in this way would then have gone on to be reused. Some bulky collections do not facilitate reuse and many HWRCs do not make reuse possible except in rare circumstances. This is particularly likely to be the case where they only have outside storage space, in which case items that cannot be kept outside are likely to be weather-damaged before they can be sold for reuse. Further, the analysis of this kind of survey relies on claimed responses. It seems likely that respondents would want to appear to be likely to ‘do the right thing’, in which case responses such as donating to charity or to friends and family may be given more frequently than would tend to be the case in reality. We can reasonably presume that various factors would influence the chosen method of disposal. For example, when moving house there is rarely enough time to arrange for exchange in the way that one might normally prefer; and therefore easier disposal options may be taken at such times. Figure 7.3 shows the proportionate breakdown of total responses for intended disposal of all items, if the items were not exchanged online. Figure 7.3 Offline alternatives to dispose of (or recycle/reuse) items, proportion of responses from online exchange users Keep them 4% Refuse collection 3% Collection of large items by council 6% Donated to friends / family 22% Sold offline 6% Car boot sales 6% Local tip or recycling centre 17% Charitable collection or outlet 25% Second hand shops 11% Online Exchange Potential Impact 45 Generally respondents would consider giving items to charitable collections/outlets (25%) or giving to friends and family (22%). This was followed by taking to the local household waste recycling centre (HWRC) (17%) and taking to a second hand shop (11%). The items taken to the HWRC may be disposed of, recycled or taken by an onsite reuse centre, so it does not necessarily mean the item would be sent to landfill if taken to an HWRC. Only 3% of the responses related to disposal of items through the refuse collection, though it is reasonable to suppose that the survey results have understated kerbside refuse as a potential disposal route, with some respondents perhaps feeling reluctant to state that they would dispose of items in a wasteful manner. We can expect that intended offline routes of disposal may vary by ACORN category (as discussed in Section 7.4), since other research has shown that the disposal/recycling behaviour of different ACORN categories varies in relation to kerbside disposal and recycling.12 The results do seem to indicate, in any case, that the total additional reuse that can be attributed to the use of online sites is markedly lower than the total quantities of reuse that are actually found to be occurring through the monitoring that was carried out and has already been presented in this report. Additional reuse would appear likely to occur in only around 10–15% of cases (including some of the responses giving bulky collection and use of HWRCs as likely alternatives as well as kerbside refuse collection). This assumes that the proportion of responses involving disposal to residual waste suggested in Figure 7.3 does offer a reasonable proportion of online exchanges that would otherwise have been disposed of. As already explained, the true displacement rate would involve a more detailed investigation of alternative options and how likely it is that each would be used in any one instance. This survey question was not constrained to investigating a respondent’s actual history of offline disposal (or recycling/reuse) of various items, and therefore the responses often relate to the aspirations of the respondents, rather than indicating their actual behaviour. There could be an impact on the results arising from a respondent’s understanding of the terminology used in the question. From a respondent’s point of view there could well be some degree of overlap of charitable collections and second hand shops, which has not been brought out through the survey. The distinction between the two alternatives could be subjective, depending on what individual respondents consider to be charitable collection/outlets or second hand shops. It would seem sensible to assume that in some less affluent areas, all second hand shops are also charitable outlets. 12 Resource Futures on behalf of WRAP, Waste Compositional Analysis by ACORN Category, 2011 (unpublished at the time of writing). Online Exchange Potential Impact 46 Figure 7.4 Offline alternatives for disposal (or recycling/reuse) of furniture for online exchange users 70% 60% Keep item 50% Refuse collection Collection of large items by council 40% Local tip or recycling centre Charitable collection or outlet 30% Second hand shops Car boot sales 20% Sold offline Donated to friends / family 10% 0% Sofa Dining table Desk Office chair Base: Sofa 708, dining table 673, desk 649, office chair 617 It can be seen that the most popular disposal routes for all furniture are donating to charity and donating to friends and family. For sofas, dining tables and desks over 50% of people who answered this question would donate to charity and family/friends. Office chairs would also be donated to charity or friends and family, although taking them to the HWRC would also be an option for 38% of respondents. Online Exchange Potential Impact 47 Figure 7.5 Offline alternatives for disposal (or recycling/reuse) of electrical items 70% 60% Keep item 50% Refuse collection Collection of large items by council 40% Local tip or recycling centre Charitable collection or outlet 30% Second hand shops Car boot sales 20% Sold offline Donated to friends / family 10% 0% Television Mobile Computer Other IT Other Washing phone electrical machine Base: TV 681, mobile 618, computer 666, other IT 583, other electrical 661, washing machine 642 There was a general pattern to the preferred disposal options for the electrical items, in that HWRCs and donating to family/friends were the most popular options. The third most stated option for washing machines was using the council bulky waste collection, whereas for all other electrical items the third option was to use a charitable outlet. Online Exchange Potential Impact 48 Figure 7.6 Offline alternatives for disposal (or recycling/reuse) of clothing 70% 60% Keep item 50% Refuse collection Collection of large items by council 40% Local tip or recycling centre Charitable collection or outlet 30% Second hand shops Car boot sales 20% Sold offline Donated to friends / family 10% 0% Leather jacket Cotton shirt Jumper Base: leather jacket 645, cotton shirt 674, jumper 678 The most stated disposal options for all three types of clothing items was donating to charitable collections or outlets, followed by second hand shops and donating to friends and family. 7.2 Non-users of online exchange websites Out of the 1,092 respondents, 509 said they did not use online exchange websites (or were assumed not to as they did not answer the question relating to use and awareness of the different websites; or stated that they did not have access to the internet). 7.2.1 Awareness of online exchange sites The respondents who do not use the websites were asked if they were aware of the sites or not; the results are shown in Figure 7.7. Online Exchange Potential Impact 49 Figure 7.7 Awareness of online exchange websites for non-users of online exchanges 140 Number of Respondents 120 100 80 Aware of (but have not used) 60 Not aware of 40 20 0 eBay Freecycle Freegle Gumtree Preloved Websites Generally, those who answered this question were more likely to be unaware of a website than to know of it but not have used it. The exception to this was eBay, of which many more people were aware than unaware. 7.2.2 Reason for not using online websites Respondents were asked to rate each website for ease of use, personal security, environmental benevolence, bargain hunting and item quality. There was a low response rate to this question and therefore it is difficult to draw solid conclusions from the results. However, amongst the responses that were received, the quality of an item was reported to be the main reason for not using online exchange websites, followed by personal security and not understanding how they worked. 7.2.3 Willingness to use online exchange sites for non-users All non-users were asked whether they would consider exchanging certain items online. The response rate to this question was also low, as the data in Table 7.4 show. Online Exchange Potential Impact 50 Table 7.4 Responses to question asking whether non-users would consider using online exchange sites Items Base Response Sofa 34 32 Dining table 42 39 Desk 40 38 Office chair 30 27 Television 27 26 Small electrical items 26 24 Large electrical items 30 28 Leather jacket 19 18 Cotton shirt 12 10 Jumper 11 10 Mobile phone 21 20 Computer 23 22 Other IT 32 30 Of the respondents who do not use online exchange sites, less than 10% answered this question. It is not possible to determine whether those not answering the question would not consider exchanging items. However, of those who did respond, the results show that the least exchangeable items were cotton shirts and office chairs, and the most exchangeable items were televisions and computers, although the differences between least and most exchangeable are small. 7.2.4 Offline alternatives to exchange or dispose (or recycling/reuse) items for non-users of online exchanges The non-users of online exchange websites were asked what they do with items they would like to exchange or dispose of; the proportions of responses for each disposal (or recycling/reuse) option are shown in Figure 7.8. Online Exchange Potential Impact 51 Figure 7.8 Offline disposal (or recycling/reuse) routes for non-users of online exchanges, proportion of responses Keep them Refuse collection 3% 5% Sold offline 3% Car boot sales 2% Donated to friends / family 15% Collection of large items by council 12% Second hand shops 9% Local tip or recycling centre 20% Charitable collection or outlet 31% This question was answered by 410 respondents. It can be seen that 31% of respondents use charitable collections or outlets to dispose of their unwanted items. Local tips or recycling centres, i.e. HWRCs (20%) and donating to family and friends (15%) were the other popular choices. Figures 7.9, 7.10 and 7.11 show the offline disposal (or recycling/reuse) options for non-users of online exchanges for each category of items (furniture, electrical and clothing). Online Exchange Potential Impact 52 Figure 7.9 Disposal (or recycling/reuse) routes for furniture, non-users of online exchanges 70% 60% Keep item 50% Refuse collection Collection of large items by council 40% Local tip or recycling centre Charitable collection or outlet 30% Second hand shops Car boot sales 20% Sold offline Donated to friends / family 10% 0% Sofa Dining table Desk Office chair Base: Sofa 297, dining table 275, desk 250, office chair 226 In the furniture category, the option stated by the most respondents was donation to charity. Other commonly stated options were the council bulky waste collection and donation to family/friends. Office chairs differed from the other furniture types in having HWRCs as the second most frequently stated option. Online Exchange Potential Impact 53 Figure 7.10 Disposal (or recycling/reuse) routes for electrical items, non-users of online exchanges 70% 60% Keep item 50% Refuse collection Collection of large items by council 40% Local tip or recycling centre Charitable collection or outlet 30% Second hand shops Car boot sales 20% Sold offline 10% Donated to friends / family 0% TV Mobile Computer Other IT Other Washing phone electrical machine Base: TV 284, mobile 230, computer 191, other IT 164, other electrical 287, washing machine 275 For televisions, computers, ‘other IT’ and ‘other’ electrical items, the local tip or recycling centre, i.e. the local HWRC, was the most common response. Mobile phones differed in that the most frequent response was donation to charity. More people said they would put a washing machine out for the council to collect than any other route of disposal (or recycling/reuse). Online Exchange Potential Impact 54 Figure 7.11 Disposal (or recycling/reuse) routes for clothing items, non-users of online exchanges 70% Keep item 60% Refuse collection 50% Collection of large items by council 40% Local tip or recycling centre 30% Charitable collection or outlet 20% Second hand shops 10% Car boot sales 0% Sold offline Leather jacket Cotton shirt Jumper Base: Leather jacket 262, cotton shirt 283, jumper 295 The most frequently stated option for clothing is donation to charity, followed by taking to a second hand shop. Over 10% of people would also possibly donate their clothing to friends or family. Clothing seems more likely than other items (except for some electrical items) to be discarded for refuse by non-users of online exchange. For both furniture and large electrical goods high numbers of non-users of online exchange sites would use bulky waste collections, which involve a fairly high risk of those items not being reused (although the electrical items will be recycled). Further analysis of offline disposal routes can be found in Section 7.4. 7.3 Comparison of users and non-users There were 583 users of online exchange websites and 509 non-users who participated in the survey, although not all of them answered the questions relating to alternative disposal routes. All respondents were asked about offline alternatives used to exchange or dispose of items. Figure 7.12 and Table 7.5 give a comparison of users and non-users of online exchange websites. Table 7.5 shows the different offline reuse and dispose routes for all items for both users and nonusers of online exchange. This shows that overall reuse by users of online exchange sites is slightly higher, although some routes are well used by both (such as charitable collections). The potential displacement from other types of reuse by offline respondents is lower (i.e. they could do more additional reuse), though a number of options remain open to increase the amount of reuse they do, of which online exchange websites is only one. What they switch to when they take up reuse is likely to be a matter of convenience as much as anything. The data would suggest that there are opportunities to increase reuse of items collected through the bulky waste system or HWRCs. Online Exchange Potential Impact 55 Table 7.5 Comparison of offline reuse and disposal routes for users and non-users of online exchange websites Offline alternative Users of online exchange Non-users of online exchange Keep them 4% 3% Refuse collection 3% 5% Collection of large items by council 6% 12% Local tip or recycling centre 17% 20% Charitable collection or outlet 25% 31% Second hand shops 11% 9% Car boot sales 6% 2% Sold offline 6% 3% 22% 15% Donated to friends / family Figure 7.12 Offline disposal routes for items, comparison of users and non-users of online exchanges 100% 90% 80% Donated to friends / family 70% Sold offline Car boot sales 60% Second hand shops 50% Charitable collection or outlet HWRC 40% Collection of large items by council 30% Refuse collection Keep item 20% 10% 0% Do use online sites Do not use online sites For respondents who use exchange websites but are disposing of an item offline it was found that the most commonly stated routes were to donate to charities, then to give items to friends and family, followed by taking items to the HWRC. For those respondents who do not use exchange websites, it can be seen that they would also dispose of their items via the same three main routes, albeit in a different order of preference: via a charity, taking them to the HWRC and then donating to family or friends. Online Exchange Potential Impact 56 Differences can be seen in the higher proportion of responses relating to use of the refuse collection and bulky-waste collection for non-users of exchange websites. Interestingly, it seems that people who use online sites may also take more items to car boot sales, sell offline and put less in the refuse or bulky waste collection than those who do not use the online sites. This may suggest that overall the users of sites are more likely to put in the effort to get some money for their unwanted items. This is consistent with the finding that non-users are more likely to use charitable collections or to take items to charity shops. 7.4 Additional analysis of alternative disposal routes The responses received have been further analysed to investigate differences in the behaviour of respondents when it comes to alternative disposal routes. The analysis has been conducted for ACORN categories and also per priority item. In particular, the alternative disposal options have been considered to determine whether there is likely to be any displacement of waste from the municipal waste stream to reuse outlets. Online Exchange Potential Impact 57 Figure 7.13 and Figure 7.14 show this variation in disposal route by ACORN group in more detail for two of the priority items: cotton shirts and sofas. This analysis is for all respondents, regardless of whether they currently use online exchanges or not. In viewing these results it is important to bear in mind that the responses relate to the aspirations of the respondents and do not necessarily relate to their behaviour. For example (as discussed below), ACORN 2 appears to have the highest aspirations in terms of using the more benevolent alternative routes to online exchange; but this may be partially a reflection of the fact that there is higher internet usage for ACORN 2 (with a high proportion of young professionals and students in this category), and consequently a higher rate of participation in online activities, including online exchanges. This may be influencing the stated responses for offline disposal alternatives. The example of ACORN 2 aspirations is interesting because it is at odds with other research, which would suggest that for textiles, ACORN 1 is considerably more active in terms of actually using benevolent disposal routes (charity shops, donations) than ACORN 2.13 Although all groups are most likely to donate a cotton shirt to a charity, there are differences between the habits of the different ACORN categories. For example, it can be seen that ACORN 2 is the group that is most likely to aspire to take a cotton shirt to a charitable collection or outlet, second hand shop, sell the item offline, take it to a car boot sale, or donate it to friends and family (although the comments above regarding the possible difference between behaviour and intention need to be borne in mind here). ACORN 5, on the other hand, is the most likely to put the item in the refuse collection and more likely to take it to the local tip or recycling centre (i.e. HWRC). It is also worth noting there are some odd responses, for example the use of a council bulky waste collection for cotton shirts. 13 Resource Futures on behalf of WRAP, Waste Compositional Analysis by ACORN Category, 2011 (unpublished at the time of writing). Online Exchange Potential Impact 58 Figure 7.13 Offline disposal routes for cotton shirts by ACORN group 80% Percentage of respondents 70% 60% 50% 40% 30% Acorn 1 20% Acorn 2 Acorn 3 10% Acorn 4 0% Acorn 5 Offline Disposal Route For sofas, on the other hand, ACORN group 2 is again the most likely out of all the ACORN groups to aspire to donate the item to charity, take it to a second hand shop, sell it through a car boot sale or other offline means; but it is also the group that is most likely to take it to the tip or recycling centre (i.e. HWRC) or request a collection by the council. This may be a reflection of the fact that respondents from ACORN group 2 were more likely to consider a range of options for passing on sofas rather than narrowing their responses to only one or two. ACORN group 1 this time is also likely to donate the item to friends or family, or to a charity. Across the responses for ACORN group 5, the most popular disposal route is to have the item collected by the council. For all other ACORN groups, the most popular disposal route is through a charity collection or outlet. Online Exchange Potential Impact 59 Figure 7.14 Alternative disposal routes for sofas according to ACORN group Percentage of respondents 70% 60% 50% 40% 30% Acorn 1 20% Acorn 2 10% Acorn 3 0% Acorn 4 Acorn 5 Offline Disposal Route Table 7.6 shows the two most popular alternative disposal routes for each of the priority items. This is shown in graphical form in Figure 7.15. The routes shown in the table are those that are most likely to be used by consumers if they choose not to exchange an item online. It can be seen that for furniture, both home and office, the most popular disposal route is through a charitable collection or outlet, followed by donation to friends or family. For all electrical items except mobile phones, the most popular disposal route is the local tip or recycling centre (i.e. HWRC). Again the second most popular route is donating the item to friends or family, except in the case of washing machines, for which arranging a council collection is the second most popular route. For all clothing – leather jackets, cotton shirts and jumpers – the most popular response was to dispose of the item through a charitable collection or outlet, followed by a second hand shop. The mobile phone category shows slightly different results from all the other electrical items, in that the most popular disposal route is to donate the phone to friends or family, very closely followed by disposing of it through a charitable collection or outlet. Online Exchange Potential Impact 60 Table 7.6 The two most popular alternative disposal routes for each priority item Most popular option Second most popular option Sofa Charitable collection or outlet Donated to friends / family Dining table Charitable collection or outlet Donated to friends / family Desk Charitable collection or outlet Donated to friends / family Office chair Charitable collection or outlet Donated to friends / family TV Local tip or recycling centre Donated to friends / family Mobile phone Donated to friends / family Charitable collection or outlet Computer Local tip or recycling centre Donated to friends / family Other IT Local tip or recycling centre Donated to friends / family Other electrical Local tip or recycling centre Donated to friends / family Washing machine Local tip or recycling centre Collection of large items by council Leather jacket Charitable collection or outlet Second hand shops Cotton shirt Charitable collection or outlet Second hand shops Jumper Charitable collection or outlet Second hand shops Figure 7.15 shows the different disposal options and the relative popularity of each of the top five responses for all priority items. For the clothing categories, it can be seen that the significantly most popular disposal route is through a charity collection or outlet, with over 60% of respondents stating this route for each priority item. Similarly, this was easily the most popular route for the furniture categories. Whilst taking items to the tip or recycling centre (HWRC) was the most common response amongst the electrical items (excluding mobile phones), the graph shows that this was also a fairly common response for many of the furniture categories. For these larger items, there were also a reasonable number of respondents who said that they would arrange for a council collection for larger items – as is the case with washing machines. Online Exchange Potential Impact 61 Figure 7.15 Most popular alternative disposal routes for priority items 70% % respondents using disposal route 60% 50% 40% Collection of large items by council Local tip or recycling centre 30% 20% Charitable collection or outlet Second hand shops 10% 0% Priority item 8.0 Opportunities for Market Development The evidence gathered as part of this research suggests that internet-mediated reuse could be a cultural and societal response to a number of factors and to see it as a potentially expanding market is to assume that society can accept reuse as part of a purchased item’s typical life. However, this is a general reuse issue rather than one specific to online exchange. In terms of the sites included in this research, eBay will largely look after itself; with a net income of nearly US$2 billion in 2010 and a significant advertising budget, the company will continue to grow and attract new users every day. eBay are also the owners of Gumtree and with the recent decline in television advertising costs, Gumtree has become a regularly advertised website – more so than the parent company. As the internet becomes more widely used by all sectors of society, the development of online exchanges may change to target different sectors and reach populations that are not currently included. For example, rather than competing with furniture reuse organisations, these outlets could be encouraged to list their items online. Therefore when their traditional client base has access to the internet, they will be able to identify and purchase items online rather than needing to visit the shop. In these instances the websites may need to be Online Exchange Potential Impact 62 developed to account for third parties purchasing the item (e.g. a housing association on behalf of its tenant). A benefit of internet reuse over other outlets is that there may be greater opportunities to match items wanted and offered (free or otherwise). An easy-to-use website that provides accurate descriptions and pictures is likely to facilitate reuse and allow site users to have more confidence in the quality and usability of the item they are purchasing/ taking. Inevitably, the use of online services will increase as more of the UK’s population become comfortable with using the internet. As internet use increases, it would be appropriate for local authorities to support online exchanges in the same way that they support offline methods. This support might be as simple as to link to the site from their own web pages. For the purposes of this research, the free exchange sites were more difficult to monitor since items listed on them were not categorised by type but by listing status. For ease of monitoring, a more detailed and structured categorisation would make it quicker and simpler to search for and find different types of items being listed. A further opportunity may be found in encouraging charitable organisations to use online exchange mechanisms; for example, having a shop on eBay or a group based on the Freegle/Freecycle model. Based on the evidence of this research, providing an online link to charity shops could encourage both reuse and charitable exchange and have a double benefit. This does already occur; for example, some furniture reuse organisations will sell items on their own website or through portals such as Amazon marketplace. In fact, on eBay sellers can choose to donate a percentage of the sale price to charity, or a charity can sell items itself. One example is Marie Curie Cancer care; its eBay page states that 100% of the sale price of any item sold will go to the charity.14 9.0 Observations and Conclusions There are two elements to this section. The first concentrates on some of the headline observations made during this research. They are not all data-based and a number of hypotheses are described which have arisen from the process of undertaking the research. The second section provides conclusions about the potential to measure the amount of online exchange to identify the amount of reuse using this mode of exchange. 9.1 Observations This section firstly details a number of headline observations made during the monitoring phase of this research, with specific observations for each website about the amount of activity on each site and the amount of exchange that was observed. 9.1.1 eBay Monitoring the number of certain items added to eBay over the course of one week provided a means of estimating the number of items added to eBay each year. Numbers are high; for example approximately 1,185,000 used mobile phones, 896,000 cotton shirts and 56,000 washing machines are listed on the site for sale each year. The proportion of these items which are actually sold on eBay varies by item. Average sales range from 82% of mobile phones and 79% of washing machines being sold, down to 31% of cotton shirts 14 http://donations.ebay.co.uk/charity/charity.jsp?NP_ID=11871&searchString=mariecuriecancercareshop#buynp Online Exchange Potential Impact 63 and 34% of jumpers. The actual number of shirts and jumpers sold is still fairly high, however, as large numbers of these items are listed in the first place, and a high proportion of products that do not sell first time are then relisted. The results from the items monitored suggest that highly priced items sell better on eBay than cheaper ones. The average final bid also varies by item. Sofas are the ‘highest value’ item of those monitored, selling for an average price of £110. Mobile phones and washing machines also go for higher prices (as would be expected), with cotton shirts and jumpers both being much cheaper and selling for close to £5 on average. There is limited office furniture on eBay, although the items that are listed seem to sell fairly well. The numbers of larger items that are sold through eBay, such as furniture, washing machines and computers, are generally lower than smaller items which can be more easily posted to the buyer. The larger ‘bulky’ items mostly need to be collected in person, which will dramatically reduce the number of prospective buyers. This monitoring exercise has shown that mobile phones sold the best on eBay out of all items monitored. High numbers are listed on the site in the first instance, but a high proportion of those items are also sold; this could be because mobile phones are highly priced but also easy to post. 9.1.2 Gumtree Mobile phones are popular items advertised on Gumtree, as are televisions. Results varied by region, with some areas being much more active than others. A relatively high number of sofas are also featured on Gumtree. This could be because items are advertised locally, and so prospective buyers who are searching the adverts are more likely to be in a position to collect the item, compared to national sites. Very few clothes are advertised on Gumtree, and office furniture did not feature highly. 9.1.3 Preloved Preloved activity was found to be lower than on Gumtree, although the setup of the site is very similar, with items being advertised locally. Altogether, there were just 163 adverts for monitored items across all five areas. In some cases, searches returned just one or two items in certain categories, and in fact in Inverness there were only three adverts in total across all priority items. Mobile phones were once again the most popular items to exchange on Preloved, followed by sofas and dining tables. This could be because the local nature of the adverts benefits those selling large items that need to be collected in person by the buyer. Very few adverts were found for office furniture, and there were also low numbers of adverts for computers and washing machines. 9.1.4 Freegle/Freecycle From the outset, it was clear that neither of these sites has invested in providing an efficient service for wide-scale use and as the services grow in popularity, some sort of preliminary classification similar to eBay would improve the usability of the sites and potentially improve the rate at which items are exchanges on these sites. Nonetheless a high proportion of users make accurate use of the system which facilitates effective (if time-consuming) searching for specific items. The availability of a daily digest of listings further simplifies searching; however, items can be taken very quickly, introducing an element of luck in obtaining specific types of items. Geography also plays a part in the effectiveness of Freegle and Freecycle. The group setup means that a user has to belong to many groups in order to search an area from which they can collect items. It can be assumed that all items must either be collected or delivered – using a postal service would then put a cost on an otherwise free item. Online Exchange Potential Impact 64 9.1.5 Consumer survey The survey data was analysed based on those who do and do not use online exchange sites. However, there was a low response rate for non-users for the majority of questions which means that we cannot be confident in drawing conclusions from this data. For the respondents who do use online exchange websites, it can be seen that eBay and Gumtree are the most recognised and used. Overall there seem to be more items offered online than accepted, although this does vary depending on the item. ‘Other’ items, small electrical and ‘other IT’ items were the most offered and accepted items from respondents who use the websites. When not using online exchange websites, the respondents who do use them said that they would mostly donate unwanted items to a charity shop, followed by friends and family donations. For the respondents who do not use online exchange websites, only six people answered the question about how aware they are of the different websites; therefore there this data could not yield any reliable results. When asked how they do dispose of unwanted items, the majority of people who do not use online exchange websites said that they would donate to charity, make use of a local authority collection or take it to the household waste recycling centre (HWRC). This result clearly suggests that the majority of respondents are willing to take environmentally positive actions to manage useable but unwanted items. However in reality a proportion of these items could be unsuitable for reuse and goodwill, i.e. willingness to reuse, could well be superseded by convenience. As shown in Section 7.4, there is a clear trend with offline alternatives for item exchange. Clothing appears to be sent mainly to charitable outlets (which may include second hand shops depending on the respondent’s perception of the question) whereas electronic goods (WEEE) are more likely to go to HWRCs. The offline destination of furniture might be more varied, probably due to the sheer bulk of some of the items. Many shops, particularly the charitable outlets, are reluctant to accept WEEE due to the stricter regulation on selling electronic goods. These items require testing by qualified persons (PAT testing) whereas items such as clothing and furniture are much easier to prepare for resale or distribution. The question of suitability for reuse is not likely to be answered by the ‘producer/vendor’, but whoever receives the item. Therefore it is likely that a proportion of items that are offered for reuse will not be suitable for reuse and will merely take a longer route to disposal, with no benefit being derived from the initial goodwill of the offer. 9.2 Conclusions This study set out to identify whether it is possible to measure the amount of goods being exchanged online and to develop an understanding of the potential for reuse, and therefore the benefits of online exchange. From the monitoring that has taken place, it is clear that it is possible to measure the quantities of items that are listed for exchange. However, for most sites it has not been possible to know for certain whether an exchange has actually taken place or not. The research has quantified awareness and use of online exchange both in terms of quantity and type of items advertised. For eBay, it can be clear when an item is sold and it becomes second hand therefore preventing the item from becoming waste. We can quantify the number of items and therefore it should be possible to calculate the tonnage of waste prevented as a result. This is a quantifiable benefit of this online exchange portal. It is not clear how long the item continues to be used before becoming waste. The length of time a second hand item needs to be used in order to qualify as a reused item is a question beyond the scope of this report. Online Exchange Potential Impact 65 It is more difficult to measure exchange that has taken place through websites such as Freegle. This is because it is currently very difficult to determine with certainty whether an item has actually been taken or not. Anecdotal evidence from a handful of users would suggest that most, if not all, items are exchanged; but even if this is true, once again it is not possible to know how long the item is used before it becomes waste, or re-enters the reuse cycle. With the online monitoring it has sometimes been difficult to obtain data, especially data to confirm the item has been sold or exchanged. Without this data it is difficult to measure the amount of goods being exchanged online and to develop an understanding of the benefits of online exchange. Success in answering the original aims of this study: to measure online exchange of second hand goods and provide information for an assessment of the benefits of reuse through this medium, has been greater for some of the websites than others. Including online exchange as a viable method of facilitating waste prevention could be an important element of accounting for waste prevention in the UK. To be able to determine how much reuse is occurring through online services, it would need to be possible to assess more accurately whether an exchange takes place, and further research or monitoring would be needed to check with accuracy whether the reuse that had occurred was additional or was displacing reuse that would have occurred elsewhere (e.g. via a charity shop or reuse organisation). It would be much more straightforward to achieve this if the sites themselves were set up in a way that facilitated effective monitoring of specified types of second hand items, and it is hoped that the recommendations for Freegle and Freecycle may be of some use in designing their sites to enable easy identification and categorisation of the main types of items that appear on them. The issues of item quality and the potential for exchanged items to be subsequently reused or resold, in relation to items changing hands through online exchanges, have not been comprehensively addressed in this research. In particular, for the free exchange sites Freecycle and Freegle, items could be exchanged for benevolent reasons and then sold on for financial gain. Collectibles and furniture are both subject to this sort of activity. The issue of quality could be addressed through contacting recipients of items through the portals studied and this could potentially shed light on how long items are kept out of the disposal stream. The overall volume of items exchanged could be increased with relatively little investment and it is recommended this should be researched further in collaboration with specific website operators. Introducing item categories, even at a very broad level (for instance, furniture, electronics, clothing) could help people find the items that they are looking for. eBay uses these categories to simplify search for items, although it is also used to aid the casual browser. This research aimed to find out if it is possible to measure the amount of goods being exchanged online and to develop an understanding of the benefits of online exchange. This report shows that the volumes of items can be quantified to some extent, and that it may be possible to extend the data to estimate weights of materials changing hands in this way. The monitoring required in order to determine the flow of items must be streamlined if it is to be repeated on a larger scale; and the nuances and variations of how specific portals are used must be more clearly understood if annual estimates are to be made more reliable. Online Exchange Potential Impact 66 Appendix 1: Weight estimates of items Estimated weights of items exchanged are presented here. These estimates have been kept separate from the main body of the report, as there is significantly less confidence in the weight estimates in comparison to estimated numbers of items sold and exchanged, for the reasons described below. Elsewhere in the report the numbers of items sold and exchanged have been calculated. However it is problematic to provide corresponding estimates for tonnes of items sold or exchanged with any confidence, essentially considering the often wide range of weights per item for different subcategories of the same category. For example the FRN average weight list includes 13 different entries for televisions, which includes both CRT and flat screen varieties. The different sizes of televisions, coupled with the different types of television, means that the weight can vary between 4.4 kg and 31.0 kg. The average weight across the range of average weights for the 13 different types of televisions is 14.4 kg per item. However, it is problematic to apply this figure as an average weight for televisions because the distribution of weights (i.e. the relative numbers of items of lower and higher weights) is not known, due to lack of knowledge about subcategories of items (in this example relating to different types of televisions). Table A1.1 lists the average weights that have been used for the priority items. We have applied the ‘average’ weight to the number of units exchanged for each of the priority items, and the results of this analysis are presented below. It should be borne in mind that the ‘average’ weights for any of these items could be misleading, depending on whether an item subcategory has a lower or higher weight than the average used in the calculation. Therefore this method of applying average weights may result in a significant under- or over-estimate of the actual weights involved in online exchange; and it is not possible to say which without more comprehensive analysis of the listings. Indeed, as designs and consumer preference changes, this may be reflected in the weight of the items exchanged (for example, items such as mobile phones and televisions are lighter now than in the past), and so it will be important for future research to apply average weights of items at a subcategory level, and for these average weights to be reasonably up to date, if reliable weight estimates are to be produced. This method of applying average weights per item in order to arrive at a total estimated tonnage can obscure the true success of exchange sites. Measures of success that are more valid might arguably be related to the number of items exchanged, awareness of online exchange communities and levels of usage of their sites. Table A1.1 Average weight of priority items Online Exchange Potential Impact 67 Category Average Weight (kg) Sofa 39.50 Dining table 25.00 Office desk 24.33 Office chair 12.00 TV 14.35 Mobile phone 0.50 Computers 6.50 Other IT 14.33 Washing machine 58.67 Leather jacket 1.50 Cotton shirt 0.20 Jumper 0.50 Ebay Table A1.2 and Figure A1.1 show that sofas, televisions, dining tables and washing machines contribute more to the tonnage of material exchanged via eBay than other items, despite the fact that the number of listings and the exchange rate (i.e. the percentage of items that are actually sold or exchanged) are lower. It is estimated that a total of 4,848,064 priority items are listed on eBay every year, and the weight of these items sold equates to approximately 15,436 tonnes. Table A1.2 Estimated listings, exchange rate and tonnage exchanged per annum on eBay Category Sofa Dining table Office desk Office chair TV Mobile phone Computers Other IT Washing machine Leather jacket Cotton shirt Jumper Total for priority items Estimated annual listings 222,463 210,418 13,663 52,449 256,724 1,011,764 52,787 286,728 66,658 332,852 1,107,483 1,234,077 4,848,064 Estimated exchange rate 47% 49% 49% 42% 67% 82% 59% 39% 79% 49% 31% 34% Total tonnage exchanged per year 4,130 2,578 163 264 2,469 415 202 1,603 3,089 245 69 210 15,436 Online Exchange Potential Impact 68 Figure A1.1 Total estimated tonnage exchanged per annum on Ebay Leather jacket, 245 Cotton shirt, 69 Washing machine, 3,089 Jumper, 210 Sofa, 4,130 Other IT, 1,603 Dining table, 2,578 Computers, 202 Mobile phone, 415 TV, 2,469 Office Desk, 163 Office chair, 264 Online Exchange Potential Impact 69 Preloved The average number of items listed per week per Preloved group is low, but if the findings of this study are factored up to account for the fact that there are 70 groups throughout the country, the estimated number of listings per annum is 116,480, for the priority items included in this study. Using an exchange rate based on that observed for eBay, the total weight of items exchanged per year has been estimated as a total of approximately 927.39 tonnes (for all priority items). In common with findings for eBay, furniture and large electrical result in a higher tonnage exchanged, despite lower volumes listed and exchanged. Few items of clothing are listed and exchanged on Preloved. Table A1.3 Estimated listings, exchange rate and tonnage exchanged per annum on Preloved Category Sofa Dining table Office desk Office chair TV Mobile phone Computers Other IT Washing machine Leather jacket Cotton shirt Jumper Total for priority items Average number of new listings per week 5 4 1 1 3 8 1 2 1 3 2 1 Estimated network activity per year 18,200 14,560 3,640 3,640 10,920 29,120 3,640 7,280 3,640 10,920 7,280 3,640 Estimated annual tonnage 116,480 719 364 89 44 157 15 24 104 214 16 1 2 Estimated exchange rate* 47% 49% 49% 42% 67% 82% 59% 39% 79% 49% 31% 34% Estimated total tonnage exchanged per year 338 178 43 18 105 12 14 41 169 8 0 1 1,748 927 *based on eBay monitoring Figure A1.2 Total estimated tonnage exchanged per annum on Preloved Leather jacket, 8 Jumper, 1 Washing machine, 169 Other IT, 41 Computers, 14 Mobile phone, 12 Sofa, 338 TV, 105 Office chair, 18 Dining table, 178 Office Desk, 43 Online Exchange Potential Impact 70 Gumtree The average number of listings is higher for Gumtree than for Preloved, although there are fewer groups with only 46 Gumtree sites throughout the UK (compared with 70 for Preloved). Factoring up the findings of this study to all Gumtree groups in the UK results in a total estimated weight of items exchanged of 27,686 tonnes. Once again the larger items contribute significantly to total tonnage, and users are not listing items of clothing as frequently as they do on eBay. Table A1.4 Estimated listings, exchange rate and tonnage exchanged per annum on Gumtree Category Sofa Dining table Office desk Office chair TV Mobile phone Computers Other IT Washing machine Leather jacket Cotton shirt Jumper Total for priority items Average number of new listings per week 191 99 47 20 272 395 115 76 54 8 35 4 Estimated network activity per year 456,872 236,808 112,424 47,840 650,624 944,840 275,080 181,792 129,168 19,136 83,720 9,568 3,147,872 Estimated annual tonnage 18,046 5,920 2,736 574 9,338 472 1,788 2,606 7,578 29 17 5 49,109 Estimated exchange rate* 47% 49% 49% 42% 67% 82% 59% 39% 79% 49% 31% 34% Estimated total tonnage exchanged per year 8,482 2,901 1,340 241 6,256 387 1,055 1,016 5,987 14 5 2 27,687 *based on eBay monitoring Figure A1.3 Total estimated tonnage exchanged per annum on Gumtree Leather Cotton shirt, 5 jacket, 14 Washing machine, 5,987 Jumper, 2 Sofa, 8,482 Other IT, 1,016 Computers, 1,055 Mobile phone, 387 TV, 6,256 Dining table, 2,901 Office Desk, Office chair, 241 1,340 Online Exchange Potential Impact 71 Freegle Whilst the numbers of items listed per month per group are quite low, there is a large number of groups (269) which means that the estimated number of annual listings is quite high (309,888). However the exchange rate for Freegle is estimated to be lower than for eBay and other sites, so that the estimated weight of material exchanged is only 691 tonnes. Freegle is used a lot for exchanging small electrical appliances. These are not listed below, as small electrical appliances generally are not classified as priority items for the purposes of this study. Mobile phones are included in the list. It is interesting to note that the number of small electrical appliances listed is 106,524, resulting in an estimated weight of items exchanged of 124 tonnes. Table A1.5 Estimated listings, exchange rate and tonnage exchanged per annum on Freegle Category Sofa Dining table Desk Office chair Large electrical items (fridge, washing machine) TV Mobile phone Computer Other IT (printers, monitors, mice, consoles, software) Leather jacket Shirt Jumper Total for priority listings Estimated total tonnage exchanged per year 110 15 100 9 Average listings per group per month 12 1 9 2 Annual listings 38,736 3,228 29,052 6,456 Estimated annual tonnage 1,530 81 707 77 Estimated exchange rate 7.2% 18.2% 14.1% 11.4% 23 14 6 10 74,244 45,192 19,368 32,280 3,527 649 10 210 8.5% 5.8% 4.5% 9.1% 300 38 0 19 18 0 1 0 58,104 0 3,228 0 309,888 833 0 1 0 7,623 12.1% 0.0% 0.0% 0.0% 101 0 0 0 692 Online Exchange Potential Impact 72 Figure A1.4 Total estimated tonnage exchanged per annum on Freegle Other IT, 101 Computer, 19 Mobile Phone, 0 Sofa, 110 Dining table, 15 TV, 38 Desk, 100 Large electrical items (fridge, washing machine), 300 Office Chair , 9 Summary The estimated total tonnage of priority items exchanged per annum in the UK for the online exchange sites included in this study is summarised in the Table A1.6, with the same data detailed in Figure A1.5. It is worth noting that the weight of items exchanged on the local sites (e.g. Gumtree) is quite high, relative to use. Whilst eBay has by far the highest number of items listed, the items that are popular, both in terms of listings and subsequent exchanges, are generally small in size and weight and more likely to be posted to the buyer, whereas the sites with geographically specific groups are more likely to match buyers and sellers who can collect or deliver large items within their local area. Table A1.6 Estimated total weight exchanged per year (tonnes) Category Sofa Dining table Office desk Office chair TV Mobile phone Computers Other IT Washing machine Leather jacket Cotton shirt Jumper Total for priority items Ebay 4,130 2,578 163 264 2,469 415 202 1,603 3,089 245 69 210 Preloved 338 178 43 18 105 12 14 41 169 8 0 1 Gumtree 8,482 2,901 1,340 241 6,256 387 1,055 1,016 5,987 14 5 2 Freegle 110 15 100 9 38 0 19 101 300 0 0 0 Total 13,060 5,672 1,647 533 8,868 815 1,290 2,761 9,544 267 74 212 15,436 927 27,687 692 44,742 Online Exchange Potential Impact 73 Tonnes Figure A1.5 Estimated total tonnage exchanged per year 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Ebay Preloved Gumtree Freegle Table A1.7 shows the difference between the number of items listed and the estimated tonnage exchanged per annum in the UK. This takes account of the exchange rate, i.e. the percentage of items that are actually sold or exchanged. Online Exchange Potential Impact 74 Table A1.7 Comparison of numbers and estimated tonnages of items exchanged per annum in the UK for the online exchange sites included in this study Ebay Category Sofa Dining table Office desk Office chair TV Mobile phone Computers Other IT Washing machine Leather jacket Cotton shirt Jumper Total for priority items No. items listed per year 222,463 210,418 13,663 52,449 256,724 1,011,764 52,787 286,728 66,658 332,852 1,107,483 1,234,077 4,848,064 Tonnage exchanged per year 4,130 2,578 163 264 2,469 415 202 1,603 3,089 245 69 210 15,436 Preloved No. items listed per year 18,200 14,560 3,640 3,640 10,920 29,120 3,640 7,280 3,640 10,920 7,280 3,640 116,480 Tonnage exchanged per year 338 178 43 18 105 12 14 41 169 8 0 1 927 Gumtree No. items listed per year 456,872 236,808 112,424 47,840 650,624 944,840 275,080 181,792 129,168 19,136 83,720 9,568 3,147,872 Tonnage exchanged per year 8,482 2,901 1,340 241 6,256 387 1,055 1,016 5,987 14 5 2 27,687 Freegle No. items listed per year 38,736 3,228 29,052 6,456 45,192 19,368 32,280 58,104 74,244 0 3,228 0 309,888 Total Tonnage exchanged per year 110 15 100 9 38 0 19 101 300 0 0 0 692 No. items listed per year 736,271 465,014 158,779 110,385 963,460 2,005,092 363,787 533,904 273,710 362,908 1,201,711 1,247,285 8,422,304 Tonnage exchanged per year 13,060 5,672 1,647 533 8,868 815 1,290 2,761 9,544 267 74 212 44,742 The percentage contribution that different types of items make to total exchanges in terms of both volume and weight can be seen in Table A1.8. Online Exchange Potential Impact 75 Table A1.8 Percentage contribution of listings and estimated tonnages of items exchanged per annum in the UK for the online exchange sites included in this study Category Sofa Dining table Office desk Office chair TV Mobile phone Computers Other IT Washing machine Leather jacket Cotton shirt Jumper Ebay No. items Tonnage listed per exchanged year per year 5% 27% 4% 17% 0% 1% 1% 2% 5% 16% 21% 3% 1% 1% 6% 10% 1% 20% 7% 2% 23% 0% 25% 1% Preloved No. items Tonnage listed per exchanged year per year 16% 36% 13% 19% 3% 5% 3% 2% 9% 11% 25% 1% 3% 2% 6% 4% 3% 18% 9% 1% 6% 0% 3% 0% Gumtree No. items Tonnage listed per exchanged year per year 15% 31% 8% 10% 4% 5% 2% 1% 21% 23% 30% 1% 9% 4% 6% 4% 4% 22% 1% 0% 3% 0% 0% 0% Freegle No. items Tonnage listed per exchanged year per year 13% 16% 1% 2% 9% 14% 2% 1% 15% 5% 6% 0% 10% 3% 19% 15% 24% 43% 0% 0% 1% 0% 0% 0% Total No. items Tonnage listed per exchanged year per year 9% 29% 6% 13% 2% 4% 1% 1% 11% 20% 24% 2% 4% 3% 6% 6% 3% 21% 4% 1% 14% 0% 15% 0% Online Exchange Potential Impact 76 Combining the estimated tonnage exchanged per annum on eBay, Preloved, Gumtree and Freegle shows that an estimated 44,741 tonnes of items are reused through these online exchanges per year in the UK, taking into account all the priority items included in this study. Whilst the volume of furniture and white goods exchanged is lower than for other goods, Figure A1.6 shows that these types of items contribute significantly to the overall weight of material exchanged. Figure A1.6 Combined estimated total tonnage exchanged per year 14,000 12,000 Tonnes 10,000 8,000 6,000 4,000 2,000 0 Online Exchange Potential Impact 77 Appendix 2: Customer Survey Questionnaire Reuse – how using the internet to exchange items can help reduce waste and improve our environment The Waste and Resources Action Programme (WRAP), a government body dedicated to improving resource use throughout the UK, is conducting research into the environmental benefits of online exchanges. This short questionnaire is designed to increase understanding of how online exchange sites, such as eBay, Freecycle, Freegle, GumTree and Preloved, are used. Exchanging items online can have important environmental benefits by diverting reusable items away from landfill, and the aim of this research is to understand the extent of these benefits. The questionnaire should only take a couple of minutes to complete and return in the prepaid response envelope. Alternatively, you can fill the questionnaire out online by typing the following link into your internet browser: www.surveymonkey.co.uk/s/InternetBasedReuse The questionnaire requires you to enter a name and your postcode. However, these details will only be used for the purposes of this of research. Your details will not be published and will not be made available to any third parties. You will not be contacted and any answers that you give will remain anonymous. Thank you in advance for taking the time to help with this important piece of research; your time is much appreciated. So much so that every respondent will be entered into a free prize draw with the chance to win high street vouchers worth up to £50. Thank you and good luck! Name Post Code 1. Do you have access to an internet connection? Yes No If No, please go to question 6 2. The following section relates to your awareness and use of online exchange sites. Please mark () to all that apply. Regular user refers to more than once per week. Regular Occasional Aware of Not user user (but have aware of not used) eBay Freecycle Freegle GumTree Preloved Other, please specify:aaaaaaaaaaaaaaaaaa If you have not used any exchange websites, please go to question 4 and identify the main reasons for this. Online Exchange Potential Impact 78 Preloved GumTree Freegle Freecycle If you have used online exchange sites, what have you used them for? eBay 3. Other sites, please specify aaaaaaaaaaa aaaaaaaaaaa Accepting Items only Accepting items with some items offered Offering items and accepting some items Offering items only Requesting items Other, please specify Preloved GumTree Freegle Freecycle eBay Not used 4. Please look at the list of potential reasons for either using or not using online exchange sites. So that we can identify positive reasons from negative ones, please mark your positive reasons with a tick () and negative reasons with a cross (x). If a reason does not apply, it should be left blank. aaaaaaa aaaaaaa Ease of use Personal security Environmental benevolence Bargain hunting Difficult to understand Concerned about poor item quality Sofa Leather jacket Dining table Cotton shirt Desk Jumper Office chair Mobile phone TV Small electrical items (toaster, food processor, hairdryer) Large electrical items (fridge, washing machine) Computer Other IT (printers, monitors, mice, consoles, software) Other items, please specify aaaaaaaaaaaaaaaaaaa Would Consider Accepted Offered Would Consider Offered Accepted 5. This question refers to types of items that you may have offered or accepted online. Which of the following items have you offered, accepted or would consider exchanging online? Online Exchange Potential Impact 79 Donated to friends/family Sold offline Car boot sales Second hand shops Charitable collection or outlet Collection of large items by council Local tip or recycling centre Refuse collection Keep them 6. What offline alternatives (if any) would you use to pass on or get rid of each type of item, if you decided not/were not able to do this online? Sofa Dining table Desk Office chair TV Mobile phone Computer Other IT Other electrical e.g. toaster, hairdryer Washing machine Leather jacket Cotton shirt Jumper Other, please specify aaaaaaaaaaaaaaaaaaa Other, please specify aaaaaaaaaaaaaaaaaaa Thank you for taking the time to complete this survey. Your contribution is very valuable to us. Online Exchange Potential Impact 80 www.wrap.org.uk/onlineexchange