The web marketplace for secondhand attire ought to develop 13% yearly within the U.S. by means of 2029, reaching $40 billion, in response to a study from ThredUp, the resale platform. Different sources, together with Credence Research, have launched related progress estimates.
The surge is creating ecommerce alternatives.
Drivers
Tradition, marketplaces, and economics contribute to shopper demand for used clothes.
Environmentalism and sustainability seemingly affect some patrons. Usually feminine, youthful, and engaged in widespread tradition, these buyers are conscious of the environmental impact of fast fashion, main them to hunt extra sustainable options.
Marketplaces corresponding to ThredUp, Swap.com, eBay, and Fb Market have all made discovering used, returned, or overstock clothes simpler, as they floor objects that will have in any other case offered from brick-and-mortar outlets or yard gross sales. Consumers search objects that could be stylish, classic, or simply laborious to get.
Economics can be influencing shoppers. The ThredUp examine famous that secondhand garment and shoe gross sales took off in 2021, maybe owing to the twin financial impacts of Covid and the primary set of U.S. commerce tariffs in opposition to China in 2018-19.
Since 2021, tariffs on Chinese language-made clothes have continued to extend. President Biden bumped them up in Could 2024, and extra lately, President Trump increased tariffs again, doubtlessly making some new clothes objects dearer and driving buyers towards the secondary attire market.
Alternative
With conventional retailing, massive chains typically have a aggressive benefit from shopping for energy and entry to an identical merchandise at decrease costs. The secondhand clothes and footwear market is completely different and, as such, gives a chance for small and mid-sized sellers.
Sources for used attire embrace brick-and-mortar outlets, property gross sales, and closets.
First, the secondhand attire market is inefficient. Many thrift shops and particular person sellers are usually not web-savvy or acquainted with native demand. The result’s underpriced high quality clothes. Educated resellers capitalize, sourcing these objects and promoting to a nationwide or world neighborhood.
For instance, an area thrift retailer could promote a classic Levi’s denim jacket for $25, whereas the identical merchandise can fetch $75 or extra on Depop or Etsy, because of an city trend pattern 2,000 miles away. SMBs can purchase stock at low costs and resell at good margins nearly as simply as main enterprises.
Second, model and pattern consciousness additionally creates a chance. Sellers who acknowledge undervalued luxurious or classic objects can maximize revenue by reselling on area of interest platforms geared toward patrons who perceive their price.
Nevertheless, discovering secondhand and classic clothes to promote on-line shouldn’t be straightforward. What creates the chance additionally makes sourcing stock a problem.
Listed below are a number of approaches to discovering used, returned, or overstock clothes and footwear.
- Liquidation and overstock gross sales. Massive retailers and types typically promote returns and unsold stock, typically in bulk. Attempt corporations corresponding to BULQ, B-Inventory, Through Buying and selling, Direct Liquidation, and Liquidation.com.
- On-line marketplaces. eBay, Poshmark, Depop, Fb Market, and Craigslist are sources of worthwhile items.
- Property and storage gross sales will be goldmines for classic and designer items, however visiting the occasions is laborious, and high quality varies.
- Thrift and charity outlets. Goodwill, Salvation Military, and native charity outlets typically have hidden gems at low costs. These things could have been washed and can seemingly be in fine condition. Nevertheless it additionally takes a whole lot of footwork.
For all of those sources, deal with high quality. Consumers search one thing cool, classic, or sustainable.
Promoting
Promoting secondhand attire is little different than any type of multichannel ecommerce. Retailers can arrange a retailer on any widespread ecommerce platform and promote to drive site visitors and conversions.
Social platforms corresponding to TikTok, Instagram, Fb, and X are confirmed channels for used merchandise. Stay streaming newly found objects may very well be efficient. Many prominent marketplaces — eBay, Mercari, Etsy — permit for secondhand and classic clothes. Peer-to-peer portals corresponding to Fb Market, OfferUp, and Craigslist are promising choices, too.
