The online market for secondhand apparel should grow 13% annually in the U.S. through 2029, reaching $40 billion, according to a study from ThredUp, the resale platform. Other sources, including Credence Research, have released similar growth estimates.
The surge is creating ecommerce opportunities.
Drivers
Culture, marketplaces, and economics contribute to consumer demand for used clothing.
Environmentalism and sustainability likely influence some buyers. Often female, younger, and engaged in popular culture, these shoppers are aware of the environmental impact of fast fashion, leading them to seek more sustainable alternatives.
Marketplaces such as ThredUp, Swap.com, eBay, and Facebook Marketplace have all made finding used, returned, or overstock clothing easier, as they surface items that would have otherwise sold from brick-and-mortar shops or yard sales. Buyers seek items that might be trendy, vintage, or just hard to get.
Economics is also influencing consumers. The ThredUp study noted that secondhand garment and shoe sales took off in 2021, perhaps owing to the dual economic impacts of Covid and the first set of U.S. trade tariffs against China in 2018-19.
Since 2021, tariffs on Chinese-made clothing have continued to increase. President Biden bumped them up in May 2024, and more recently, President Trump increased tariffs again, potentially making some new clothing items more expensive and driving shoppers toward the secondary apparel market.
Opportunity
With traditional retailing, large chains often have a competitive advantage from buying power and access to identical products at lower prices. The secondhand clothing and footwear market is different and, as such, offers an opportunity for small and mid-sized sellers.
Sources for used apparel include brick-and-mortar shops, estate sales, and closets.
First, the secondhand apparel market is inefficient. Many thrift stores and individual sellers are not web-savvy or familiar with local demand. The result is underpriced quality clothing. Knowledgeable resellers capitalize, sourcing those items and selling to a national or global community.
For example, a local thrift store may sell a vintage Levi’s denim jacket for $25, while the same item can fetch $75 or more on Depop or Etsy, thanks to an urban fashion trend 2,000 miles away. SMBs can acquire inventory at low prices and resell at good margins almost as easily as major enterprises.
Second, brand and trend awareness also creates an opportunity. Sellers who recognize undervalued luxury or vintage items can maximize profit by reselling on niche platforms aimed at buyers who understand their worth.
However, finding secondhand and vintage clothing to sell online is not easy. What creates the opportunity also makes sourcing inventory a challenge.
Here are a few approaches to finding used, returned, or overstock clothing and footwear.
- Liquidation and overstock sales. Large retailers and brands sometimes sell returns and unsold inventory, often in bulk. Try companies such as BULQ, B-Stock, Via Trading, Direct Liquidation, and Liquidation.com.
- Online marketplaces. eBay, Poshmark, Depop, Facebook Marketplace, and Craigslist are sources of valuable goods.
- Estate and garage sales can be goldmines for vintage and designer pieces, but visiting the events is laborious, and quality varies.
- Thrift and charity shops. Goodwill, Salvation Army, and local charity shops often have hidden gems at low prices. These items will have been washed and will likely be in good shape. But it also takes a lot of footwork.
For all of these sources, focus on quality. Buyers seek something cool, vintage, or sustainable.
Selling
Selling secondhand apparel is little different than any form of multichannel ecommerce. Merchants can set up a store on any popular ecommerce platform and advertise to drive traffic and conversions.
Social platforms such as TikTok, Instagram, Facebook, and X are proven channels for used products. Live streaming newly discovered items could be effective. Many prominent marketplaces — eBay, Mercari, Etsy — allow for secondhand and vintage clothing. Peer-to-peer portals such as Facebook Marketplace, OfferUp, and Craigslist are promising options, too.