Is Ebay replacing or remaking second-hand markets in cities?

Brenda Parker & Rachel Weber, "Second-Hand Spaces: Restructuring Retail Geographies in an Era of E-Commerce," Urban Geography 34 (2013): 8

The take-away: This article examines the complex impact of e-commerce on urban second-hand markets, finding that various segments of the overall second-hand market have been affected differently. Thrift stores specializing in vintage clothing, for example, appear much less threatened by Ebay than designer stores, whom e-commerce has largely undercut. Importantly, the most opportunistic actors appear to be those brick-and-mortar retailers who commercialize both “real” and “virtual” space: on the one hand, a physical location enables them to capitalize on the “agglomeration” effect of being near similar retail outlets, and on the other, it distinguishes them from other e-commerce vendors.

Abstract: Are online markets replacing or remaking second-hand markets in cities? The restructuring of secondary markets in light of virtual outlets like eBay is not well understood. In this article, we describe secondary markets and their important historic, economic, cultural,  and social roles in cities. The literature on e-Commerce suggests that virtual retailers  compete with bricks-and-mortar stores and potentially displace them. We question  whether the internet can substitute for second-hand stores, which have traditionally relied  on a loyal and local customer base, personalized shopping experiences, and surprise  encounters. Given the historically embedded nature of exchange, we focus on one large Mid-western city, drawing upon survey and interview data from Chicago retailers. Our exploration of supply, demand, and geographic practices reveals subtle and complex alterations in second-hand exchange, rather than a displacement of second-hand markets by eBay. We also find substantive integration, fluidity, and hybridization within and across market sectors. Rather than supplant the production of new goods, secondary markets are intertwined with and deepen primary markets, calling into question some of the presumed benefits of and meanings associated with second-hand exchange as well as the usefulness of categorical distinctions. 

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