The net marketplace for secondhand attire ought to develop 13% yearly within the U.S. by way of 2029, reaching $40 billion, in accordance with a research from ThredUp, the resale platform. Different sources, together with Credence Analysis, have launched comparable development estimates.
The surge is creating ecommerce alternatives.
Drivers
Tradition, marketplaces, and economics contribute to shopper demand for used clothes.
Environmentalism and sustainability probably affect some consumers. Typically feminine, youthful, and engaged in widespread tradition, these customers are conscious of the environmental affect of quick trend, main them to hunt extra sustainable alternate options.
Marketplaces reminiscent of ThredUp, Swap.com, eBay, and Fb Market have all made discovering used, returned, or overstock clothes simpler, as they floor gadgets that might have in any other case bought from brick-and-mortar retailers or yard gross sales. Consumers search gadgets that is perhaps stylish, classic, or simply laborious 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 towards 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 just lately, President Trump elevated tariffs once more, probably making some new clothes gadgets costlier and driving customers towards the secondary attire market.
Alternative
With conventional retailing, giant chains usually have a aggressive benefit from shopping for energy and entry to equivalent merchandise at decrease costs. The secondhand clothes and footwear market is totally different and, as such, provides a possibility 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 aren’t 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 neighborhood.
For instance, a neighborhood thrift retailer might promote a classic Levi’s denim jacket for $25, whereas the identical merchandise can fetch $75 or extra on Depop or Etsy, due to an city trend development 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 development consciousness additionally creates a possibility. Sellers who acknowledge undervalued luxurious or classic gadgets can maximize revenue by reselling on area of interest platforms geared toward consumers who perceive their value.
Nonetheless, discovering secondhand and classic clothes to promote on-line just isn’t simple. What creates the chance additionally makes sourcing stock a problem.
Listed here are just a few 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, usually in bulk. Attempt firms reminiscent of 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 precious items.
- Property and storage gross sales may 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 usually have hidden gems at low costs. These things could have been washed and can probably be in fine condition. However it additionally takes numerous footwork.
For all of those sources, concentrate on high quality. Consumers search one thing cool, classic, or sustainable.
Promoting
Promoting secondhand attire is little totally different than any type of multichannel ecommerce. Retailers can arrange a retailer on any widespread ecommerce platform and promote to drive visitors and conversions.
Social platforms reminiscent of TikTok, Instagram, Fb, and X are confirmed channels for used merchandise. Dwell streaming newly found gadgets may very well be efficient. Many distinguished marketplaces — eBay, Mercari, Etsy — permit for secondhand and classic clothes. Peer-to-peer portals reminiscent of Fb Market, OfferUp, and Craigslist are promising choices, too.
