surging unemployment due to the pandemic drives up eBay sales from consumers
The COVID-19 pandemic has brought about a significant shift in the resale market, particularly for used clothing. Lockdowns gave people the time to declutter their wardrobes, leading to an increase in participants selling their unwanted clothes online on platforms such as ThredUp, Vinted, and Poshmark[1]. The convenience these platforms offer has made them more popular as consumers found online shopping for second-hand items more accessible and convenient[2].
The pandemic has also heightened awareness about sustainability and financial prudence, further driving the demand for second-hand clothing as a more environmentally friendly and cost-effective alternative to fast fashion[3]. As a result, the global second-hand apparel market is expected to grow at a CAGR of 9.6% from 2025 to 2032, reaching USD 438.1 billion by 2032[1].
Women's apparel is projected to be the fastest-growing segment due to its high turnover and the sustainability focus[1]. Technological advancements, such as AI-powered tools and machine learning algorithms, are enhancing the customer experience by providing smart searches and dynamic pricing, which will continue to drive growth[1]. Collaborations between brands and resale platforms, along with social media influencers, are helping to normalize and popularize the resale market[1].
Consumers who were already buying used goods are noticing growth in the resale market. According to an eBay survey, 78% of U.S. sellers buy used goods at least once every three months[4]. Nearly three-quarters of eBay sellers who responded to a recent eBay survey began selling used items last year to earn extra money[4]. Furthermore, 14% of the eBay sellers started selling used goods after losing their jobs amid the pandemic[4].
The exchange between buyers and sellers benefits both parties involved while also reducing waste. According to eBay's findings, 72% of merchants surveyed said buying used items has become more common in the past few years[4]. Experts anticipate that the used clothing trend can weather the global health crisis[5].
A little more than half of consumers surveyed by ThredUp said they plan to spend more money on used clothing over the next five years[5]. ThredUp, another resale platform, also went public earlier this month[5]. Merchants themselves buy pre-owned items to replenish their virtual store shelves[6]. Poshmark, a resale platform, is now publicly traded under the symbol POSH[6].
U.S. consumers have $3,675 worth of used items in their homes that could be resold[7]. The apparel resale app Curtsy raised $11 million, which it plans to use to grow its staff and expand its reach[8]. A June 2020 report from ThredUp projects that the resale market will reach $44 billion in 2029[9].
It's worth noting that the resale economy, otherwise known as re-commerce, was already gaining steam before the COVID-19 pandemic. Over the past year, 80% of U.S. sellers surveyed said they purchased used items[10]. Canadians have $7,201 CAD ($5,660) worth of used goods at home that could be resold, according to the report[10].
In conclusion, the resale market for used clothing is expected to continue its upward trajectory, driven by sustainability, convenience, and technological advancements.
References:
- Statista
- Business Insider
- Forbes
- eBay Newsroom
- ThredUp Blog
- Poshmark Press Room
- ThredUp Blog
- TechCrunch
- ThredUp Blog
- eBay Newsroom
- The pandemic has not only escalated the demand for second-hand clothing due to sustainability and financial considerations, but it has also contributed to the growth of the entire resale economy.
- As the global second-hand apparel market is projected to reach USD 438.1 billion by 2032, the industry is expected to keep expanding at a CAGR of 9.6% from 2025 to 2032.
- In addition to the rise in second-hand clothing sales, advancements in AI-powered tools and machine learning algorithms are enhancing customer experiences, driving further growth in the market.
- The convenience offered by online resale platforms such as ThredUp, Vinted, and Poshmark, along with collaborations with brands and social media influencers, are making second-hand shopping more accessible and popular.
- With a growing number of consumers selling used goods to earn extra money or contribute to sustainability, it is becoming increasingly clear that the resale economy will remain prosperous, weathering global health crises and falling in line with the overall trend toward online retail.
