Consumer Behavior Change

Studies Reveal the Dire Impacts of Bad Gift Giving

Shoppers everywhere would likely agree that the billions’ worth of negative economic and environmental impacts created by unmindful gift giving diminishes the intended sentiment behind giving gifts.

Published 21 hours ago | About a 4 minute read

Image: Gustavo Fring

Several recent studies have revealed that the detrimental effects of careless holiday gift giving go far beyond disappointed recipients.

Brits: It’s more ‘polite’ to bin unwanted gifts than resell them

A recent survey of 2,000 Brits by Depop — a UK-based fashion resale platform — found that a quarter (25 percent) of 25- to 34-year-olds in the UK will throw away gifted clothing and accessories after Christmas; with an average value of £40, this age group is tossing £91 million worth of fashion — an industry that’s creating more than enough waste on its own.

Top reasons that Brits will throw away gifts this year include items not suiting their taste (38 percent), already owning something similar (30 percent) and not having space for them (29 percent). The company estimates that if all unwanted fashion gifts were resold instead of thrown away, Brits could contribute some £344 million to the circular economy.

Despite 45 percent of Brits admitting to buying or selling on resale apps in the past month and 40 percent claiming they would like to sell unwanted gifts on a secondhand platform, 34 percent said they’re not sure whether it’s polite; and one-third said they would feel it was impolite, regardless of whether the gifter found out — but chances are, any gifter would be more offended to learn their gift was thrown away entirely.

Justine Porterie, Director of Sustainability and DEI at Depop, urges people to look beyond these concerns and consider resale a win-win — money can be earned while they avoid waste. She noted that the average adult could make £146 in a month by decluttering and listing their unwanted items on resale sites.

"If you’ve received something at Christmas that isn’t quite right for you, the chances are it will be perfect for someone else — so we’d like to encourage as many people as possible to keep it circular!” Porterie says. “Not only will you be keeping your unwanted items from cluttering your home or ending up in landfill, but you’ll also earn some extra cash for the new year."

Porterie explained that Depop is working to shift UK shoppers’ perceptions about both giving and receiving secondhand gifts: "What better way to show someone you care [than] by choosing an extra-special one-of-a-kind gift, which is also kinder to the planet? To really drive this secondhand gifting movement, we’re also urging people to let their loved ones know they would much rather receive a secondhand gift than something new.”

US gifting game also missing the mark

Meanwhile, a pre-holiday survey from OfferUp – the US’ largest mobile marketplace — revealed a notable increase in the acceptance of secondhand gifting by US shoppers: 74 percent of respondents said they feel secondhand gifting is more accepted this year — a 7 percent increase from 2023; and 83 percent are comfortable receiving secondhand gifts — viewing them as thoughtful, unique alternatives to new products.

But a pre-holiday forecast from personal finance website Finder predicted that US shoppers would be only moderately more successful in their gift giving this year: Based on previous years’ surveys, Finder predicted more than half (53 percent) of Americans — 140 million people — would be disappointed by at least one gift they received this holiday season; and holiday shoppers would spend an average of $72 on poorly received gifts this year (up from $66 the year prior) — which adds up to a whopping $10.1 billion worth of unsuitable holiday gifts that could end up collecting dust in the back of a closet or tossed in the landfill.

Unlike the Brits, Finder thought US shoppers will be more likely to regift (39 percent), hold on to (35 percent) or sell (27 percent) their unsuitable presents — and only 16 percent of US giftees would toss disappointing gifts in the trash. But, while 32 percent are more likely to exchange or return unwanted items rather than throw them away, many retailers sadly just dispose of returned goods — which brings us right back to the trash.

So, what gives?

Gift givers have everything to gain from choosing gifts more thoughtfully — along with maintaining goodwill with loved ones, buying secondhand or simply starting earlier on lists of suitable gift ideas saves money, extends the useful life of gifted items and eliminates waste.

This year, we invite brands and retailers to help their customers embrace a more intentional approach to gift giving — all year round.