The net marketplace for secondhand attire ought to develop 13% yearly within the U.S. by 2029, reaching $40 billion, in response to a research from ThredUp, the resale platform. Different sources, together with Credence Analysis, have launched related progress estimates.
The surge is creating ecommerce alternatives.
Drivers
Tradition, marketplaces, and economics contribute to client demand for used clothes.
Environmentalism and sustainability possible affect some patrons. Usually feminine, youthful, and engaged in widespread tradition, these customers are conscious of the environmental influence of quick vogue, main them to hunt extra sustainable alternate options.
Marketplaces comparable to ThredUp, Swap.com, eBay, and Fb Market have all made discovering used, returned, or overstock clothes simpler, as they floor gadgets that will have in any other case offered from brick-and-mortar retailers or yard gross sales. Patrons search gadgets that may be stylish, classic, or simply arduous to get.
Economics can also be influencing shoppers. The ThredUp research 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 Might 2024, and extra just lately, President Trump elevated tariffs once more, doubtlessly making some new clothes gadgets dearer and driving customers 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, presents a chance for small and mid-sized sellers.
Sources for used attire embody brick-and-mortar retailers, 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 accustomed to native demand. The result’s underpriced high quality clothes. Educated resellers capitalize, sourcing these gadgets and promoting to a nationwide or world group.
For instance, a neighborhood 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 vogue development 2,000 miles away. SMBs can purchase stock at low costs and resell at good margins virtually as simply as main enterprises.
Second, model and development consciousness additionally creates a chance. Sellers who acknowledge undervalued luxurious or classic gadgets can maximize revenue by reselling on area of interest platforms aimed toward patrons who perceive their value.
Nevertheless, discovering secondhand and classic clothes to promote on-line will not be straightforward. What creates the chance additionally makes sourcing stock a problem.
Listed here 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 comparable 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 helpful items.
- Property and storage gross sales could be goldmines for classic and designer items, however visiting the occasions is laborious, and high quality varies.
- Thrift and charity retailers. Goodwill, Salvation Military, and native charity retailers typically have hidden gems at low costs. This stuff may have been washed and can possible be in good condition. But it surely additionally takes quite a lot of footwork.
For all of those sources, concentrate on high quality. Patrons search one thing cool, classic, or sustainable.
Promoting
Promoting secondhand attire is little completely 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 comparable to TikTok, Instagram, Fb, and X are confirmed channels for used merchandise. Reside streaming newly found gadgets could possibly be efficient. Many distinguished marketplaces — eBay, Mercari, Etsy — permit for secondhand and classic clothes. Peer-to-peer portals comparable to Fb Market, OfferUp, and Craigslist are promising choices, too.
