The latest ThredUp Resale Report is here, and it confirms what we at Treet already know: resale is not just growing, it’s reshaping the entire fashion industry. Consumers are turning to secondhand more than ever, brands are adapting to meet demand, and technology is making the experience seamless. Let’s dive into the biggest takeaways from the report and, more importantly, what brands can do right now to build a strong resale strategy that drives revenue, retention, and sustainability.
1. The U.S. Resale Market is Booming
The secondhand apparel market in the U.S. grew by 14% in 2024, significantly outpacing the traditional retail market, which continues to struggle with stagnant growth. By 2029, the market is projected to reach $74 billion, proving that resale isn’t a passing trend—it’s an industry shift.
How brands can approach this:
- Position resale as a strategic pillar—not just a side project. While some brands still treat resale as an optional add-on, the reality is that a growing number of customers are discovering and engaging with brands through secondhand channels. To stay ahead, it’s essential to thoughtfully integrate resale into the broader customer journey, making it a seamless and visible part of the brand experience.
- Analyze existing customer behavior. Look at data from returns, discount purchases, and outlet store transactions. If customers are price-sensitive, they are prime candidates for a branded resale program.
- Develop an internal resale roadmap. Brands should outline short-term, mid-term, and long-term resale objectives, from launching a basic peer-to-peer program to implementing take-back programs and second-quality returns.
2. Online Resale is Leading the Charge
With 23% growth in 2024, online resale is the fastest-growing sector in the secondhand market. Consumers want the ease of buying secondhand without leaving their homes, and they’re turning to online resale platforms for convenience, variety, and better deals.
How brands can approach this:
- Build a frictionless resale experience. Ensure that listing, browsing, and purchasing secondhand products are as smooth as shopping for new ones. Simplify the resale journey with AI-driven search, easy payment options, and seamless mobile functionality.
- Incentivize resale participation. Offer discounts or loyalty points to customers who sell items back through your platform, keeping your brand at the center of the resale experience.
- Educate consumers on resale benefits. Many shoppers are still hesitant to buy secondhand online due to concerns about quality and authenticity. Build trust with a strong authentication process, detailed product descriptions, and transparent return policies.
3. Global Resale is Set to Hit $367 Billion
Resale is not just a U.S. phenomenon. The global secondhand market is expected to reach $367 billion by 2029, growing at a 10% compound annual growth rate. International resale markets are evolving, with key growth areas in Europe, Asia, and Latin America.
How brands can approach this:
- Adapt to regional resale trends. What works in the U.S. may not translate to other markets. In Europe, sustainability messaging is a key driver of resale, while in Asia, affordability is often the biggest factor.
- Develop localized logistics and fulfillment. International resale success depends on efficient shipping, returns processing, and pricing structures tailored to local markets.
- Test small-scale international resale pilots. Before launching a full-scale resale operation overseas, brands can experiment with region-specific resale programs to gauge demand and optimize logistics.
4. Younger Consumers Are All In
More than 68% of Gen Z and Millennials bought secondhand apparel in 2024. These shoppers are actively choosing resale over new because of sustainability concerns, affordability, and the thrill of finding unique pieces.
How brands can approach this:
- Create an engaging resale experience. Gen Z thrives on interactive shopping experiences. Brands should integrate resale into their social commerce, influencer marketing, and gamification strategies.
- Highlight sustainability benefits. Gen Z and Millennials care deeply about reducing their fashion footprint. Show how your brand’s resale program helps lower carbon emissions and reduce waste.
- Leverage scarcity and exclusivity. Limited-edition resale drops, curated collections, and “members-only” pre-owned releases can make resale as exciting as buying new.
5. Resale is a Hedge Against Tariffs and Supply Chain Disruptions
With tariffs on the rise, 59% of consumers say they will turn to secondhand if new clothing becomes more expensive. Meanwhile, 54% of retail executives see resale as a solution for inventory management in uncertain economic conditions.
How brands can approach this:
- Use resale as a backup inventory strategy. Instead of relying solely on new production, brands can reintroduce pre-owned inventory to maintain stock levels during supply chain slowdowns.
- Market resale as an affordable alternative. If new apparel prices rise, emphasize how resale allows customers to access the same quality at a lower price point.
- Streamline resale supply chains. Brands should create efficient resale fulfillment centers that can process, refurbish, and redistribute pre-owned inventory quickly.
6. Social Commerce is Driving Resale Adoption
Nearly 40% of younger shoppers have bought secondhand through Instagram, TikTok, and other social platforms. Resale is thriving in peer-to-peer social commerce spaces, where consumers can easily discover and buy pre-owned items.
How brands can approach this:
- Use peer-to-peer resale to fuel social commerce and deepen community. Giving customers the ability to list and shop pre-loved items directly on your own site turns resale into a dynamic, community-driven experience. It encourages interaction, builds loyalty, and transforms your brand into a social hub where customers actively engage with each other—not just with you.
- Encourage user-generated resale content. Social proof drives resale engagement. Create branded hashtags and encourage customers to share their secondhand finds.
- Host live resale events. Real-time shopping experiences (e.g., Instagram Live sales, limited-time flash drops) generate excitement and urgency around secondhand purchases.
7. AI is Making Resale Smarter
Consumers expect resale shopping to be as seamless as buying new, and AI is making that possible. 48% say AI-driven search and personalization improve their secondhand shopping experience, and 78% of retailers are investing in AI resale tools.
How brands can approach this:
- Use AI for dynamic pricing. Implement smart pricing algorithms that adjust based on demand, condition, and brand popularity.
- Enhance search and recommendations. AI-powered search filters, virtual try-ons, and predictive analytics can help shoppers find resale products that fit their style and preferences.
- Implement AI-powered personalized recommendations. Feed your shoppers' inboxes with pre-loved items you know they'll love, all powered through AI.
- Automate resale listing and verification. AI can streamline the intake process by automatically identifying, authenticating, and pricing pre-owned inventory.
Final Thoughts: The Brands That Embrace Resale Will Win
Consumers are making it clear resale is the future of fashion. Brands that invest in branded resale programs, AI-powered resale tools, and social commerce engagement will be the ones that thrive in the new circular economy.
At Treet, we specialize in helping brands own their resale market with powerful, easy-to-use resale solutions. Whether you’re looking to launch your first resale initiative or optimize an existing program, we’re here to help.
