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Resale Report

Table of Contents

Past Reports

2022

Resale Report

Foreword

At thredUP, we’ve spent the past decade studying resale. While the last 10 years were dominated by marketplaces, brands and retailers are driving the next wave of secondhand. In fact, brands with their own resale shops increased 275%, from 8 in 2020 to 30 in 2021. We are still in the very beginning of this trend, but the acceleration of resale adoption is a positive signal with enormous benefits for the planet. We’re proud to share this year’s Resale Report, proving that with the collective power of conscious consumers, resale marketplaces, and forward-thinking brands and retailers, we can pioneer a more sustainable future for the fashion industry. There is still much work to do. We hope you join us on this mission.

– James Reinhart, thredUP Co-Founder & CEO

01

Size & Impact of Resale

Secondhand Is Becoming a Global Phenomenon, Expected To Grow 127% by 2026

The global secondhand apparel market will grow 3X faster than the global apparel market overall.

GlobalData 2022 Market Sizing and Growth Estimates

North America Leads Global Secondhand Apparel Market Growth

GlobalData 2022 Market Sizing and Growth Estimates

U.S. Secondhand Market Is Expected To More Than Double by 2026, Reaching $82 Billion

Secondhand saw record growth in 2021 at 32%.

GlobalData 2022 Market Sizing and Growth Estimates

Technology and Online Marketplaces Are Driving the Growth of the U.S. Secondhand Market

Online resale is the fastest-growing sector of
secondhand and is expected to grow nearly 4X by 2026.

GlobalData 2022 Market Sizing and Growth Estimates
%
of consumers say it’s easier to shop secondhand than it was 5 years ago, thanks to the emergence of technology and online marketplaces.2
Online shopping

U.S. Secondhand Market Sees More Sellers Than Ever

The Clean Out trend accelerated during the pandemic and has real staying power.

Cleanout Kit
%
of consumers resold apparel in 2021.2
Nearly
%
of consumers have resold apparel, up 14 pts from 2020.2
%
of consumers who have not resold apparel are open to trying it.2

U.S. Consumers Are Embracing Secondhand in Droves

In 2021, 244 million consumers say they have or
are open to shopping secondhand products.

Bag
Percentage of consumers over 18 who have bought or are open to buying secondhand products in the future2
Note: Data for secondhand apparel not available before 2020.
Blue background image
%
of consumers have shopped or are open to shopping secondhand apparel.2
%
of consumers have purchased secondhand apparel in the last 12 months, up 22 pts from 2020.2
Background

Resale Is a Powerful Solution to the Fashion Industry’s Wastefulness

Secondhand displaced nearly
1 Billion
new clothing purchases in 2021 that normally would have been bought new.2
Shirt Up Cycle
Happy Planet
Nearly
2 in 3
consumers believe their individual consumption habits have a significant impact on the planet.2

Demand-side management and better resource efficiency are critical if we are to meet our 2050 carbon targets (IPPC). Not only can more circular business practices cut emissions, reduce primary resource use, minimise waste, and create a more accessible economy for all, but

The growth of circular systems shows many recognise this can be a winning business formula, too.

Susan Harris, Technical Director, Anthesis Group

02

secondhand is transforming closets

Secondhand Is Stealing More Share of Closet Than All Other Growth Channels Combined

Secondhand is expected to grow by 9 points, more than any other sector.

GlobalData 2022 Market Sizing and Growth Estimates

Secondhand Is Holding On to More Shoppers Than Any Other Category

81% of first-time thrifters plan to spend the same amount or more on secondhand in the next 5 years.2

Wallet

Where shoppers plan to spend more or less money in the next 5 years2

Consumers Are Thinking Secondhand First

Phone
%
of consumers say when they shop for apparel, secondhand is the first place they look.2
A woman sitting
%
of Gen Z and Millennials say they look for an item secondhand before purchasing it new.2
Phone
%
of Gen Z and Millennials consider the resale value of an apparel item before purchasing.2

Secondhand Fashion Is Seen As More Accessible and Inclusive Than Sustainable Fashion

4X as many consumers say they shop secondhand fashion than they do sustainable fashion.2

Secondhand Fashion
GlobalData 2022 Consumer Resale Survey
%
of consumers say many of the claims made about sustainable fashion feel like greenwashing.2
Globe

The Closet of the Future Is Circular With an Ever-Rotating Wardrobe

More than half of consumers have both bought and sold secondhand apparel.2

Thrifting
Nearly half of consumers who bought secondhand apparel in 2021 bought 10 or more items.2
Wardrobe
Cleaning Out
Nearly half of consumers clean out their closet at least several times a year.2
On average, consumers regularly wear about half of their closet.2
21% of Gen Z would pay more for clothing they know they can resell.2
36% of Gen Z purchases apparel items monthly or weekly—the same rate at which they clean out.2

Top Categories To Buy Secondhand

Plus, the most popular item in each category on thredUP.

1

Casualwear

Madewell overalls
Madewell overalls
2

Outerwear

Madewell overalls
Carhartt beanies
3

Accessories

Madewell overalls
Fjällräven backpacks
4

Footwear

Madewell overalls
Birkenstock sandals
5

Loungewear

Madewell overalls
Vuori sweats
6

Sportswear

Madewell overalls
Girlfriend Collective shorts
7

Workwear

Madewell overalls
Everlane jumpsuits
8

Childrenswear

Madewell overalls
Vineyard Vines board shorts
9

Occasionwear

Madewell overalls
Alice + Olivia dresses
Category ranking: GlobalData 2022 Consumer Resale Survey. Most popular item in each category: thredUP.com.

I’ve witnessed a seismic shift among my fashion industry peers in the past several years; gone are the days when we promoted new items to consumers every season.

Closets today are filled with secondhand as we’ve collectively embraced a more circular mindset and learned to do more with less.

Building a closet of “the ones that got away” is so much more unique and rewarding than shopping for new arrivals—it’s a win for your wardrobe and for the planet.

Julia Gall, Fashion Stylist and Writer

03

Inflation’s Impact on the Consumer

Consumers Are Spending Less on Apparel As They Feel the Squeeze of Inflation

Commerce List

The top 5 categories where consumers are noticing price increases:4

1Groceries
2Gasoline
3Restaurants
4Household bills
5Apparel
Shirt

Consumers are responding to inflation by cutting back spend on apparel.

%
of consumers say they’re cutting back spend on apparel—more than any other category except restaurants.4
%
of Gen Z say they’re cutting back spend on apparel—more than any other category.4
Background

Secondhand Is a Bright Spot, Helping Consumers Stretch Their Dollar Further

58% of consumers say secondhand has helped them in some way during a time of inflation.4

Top Reasons Consumers Say Secondhand Has Helped4

1Secondhand is helping me stretch my apparel budget.
2Secondhand is more attractive now that traditional retail prices are going up.
3Secondhand allows me to continue affording brands I love.
4If I couldn’t shop secondhand, I would be buying less apparel.
%
of consumers say they’re buying the same or more secondhand apparel items.4
VS
%
of consumers who say they’re buying the same or more apparel items overall.4
%
of consumers say they’ll consider buying more secondhand apparel if prices keep rising.4
04

who’s thrifting & why

Consumers Who Shop Secondhand Identify As Thrifters

A group of Thrifters
Nearly
3 in 4
of consumers who shopped secondhand in 2021 consider themselves a thrifter.2
%
of those who bought secondhand for the first time in 2021 say it gives them bragging rights.2
%
of those who bought their first secondhand item in 2021 say they go out of their way to tell people they are wearing secondhand.2

Consumers Choose Secondhand To Save Money While Leveling Up Their Wardrobes

Top 3 Reasons Consumers Buy Secondhand Over New

1Save money
63% of consumers choose used to get better deals.
2Afford higher-end brands
3Find one-of-a-kind items
Blouses

Gen Z’s Motivators to Buy Used

1Save money
2Be more sustainable
3Have more fun when shopping
Gen Z
GlobalData 2022 Resale Consumer Survey

For Some Consumers, Purchasing Behavior Is at Odds With Values

Leaf Icon
They care about the planet.
%
of fast fashion shoppers believe their individual consumption habits have a significant impact on the planet.2
%
of fast fashion shoppers believe that fast fashion is harmful to the environment.2
Undecided
Card Icon
But fast fashion is cheap and convenient.
%
of consumers say they shop fast fashion because it’s good value for the money.2
%
of consumers say they choose fast fashion because it saves them time.2

Social Pressure Fuels Consumers’ Addiction to Disposable Fashion

A woman using a phone
%
of fast fashion shoppers say fast fashion retailers encourage people to buy things they don’t need.2
1 in 5
of fast fashion shoppers say they feel pressured to have the latest styles due to social media.2
A woman using a phone
A woman using a phone
%
of fast fashion shoppers say shopping fast fashion is a habit that’s hard to stop.2 6

Most Shoppers Aspire To Buy More Secondhand and Want To Quit Fast Fashion

Nearly
2 in 3
consumers who shop fast fashion say they aspire to buy more secondhand fashion.2
Dress
%
of those who bought their first thrifted item a year ago say they want to quit buying fast fashion.2
%
of fast fashion shoppers say they try to avoid purchasing fast fashion when they can.2
%
of consumers who buy fast fashion say they feel guilty for wearing or purchasing fast fashion.2

Thrifting Evokes Positive Emotions and a Sense of Pride*

Word Cloud
%
of consumers shared that they feel a positive emotion when they buy a secondhand item.2
%
of consumers say secondhand apparel is more socially acceptable now than it was 5 years ago.2
%
of those who consider themselves thrifters say they feel proud to share with others that their outfit is secondhand.2
*GlobalData 2022 Consumer Resale Survey

Thrift Across the Nation: How the States Stack Up

Tooltip West
Tooltip Midwest
Tooltip South
Tooltip Northeast

At the rate in which the fashion industry is producing clothing, it is crucial that resale becomes a key part of citizens’ lifestyles.

The choice to embrace reuse is not always easy when we are faced with endless options—many of which encourage the purchasing of cheap, disposable fashion— but the rise of online resale is enabling citizens to make different choices and do so with pride and joy.

Aja Barber, Author of Consumed: the Need for Collective Change: Colonialism, Climate Change & Consumerism

05

Future of Retail

The Rise of Recommerce: Brands and Retailers Want In

Nearly
3 in 4
retail executives say they have or are open to offering secondhand to their customers, up 14 pts from 2020.3
%
believe their retail peers are already offering resale or actively exploring the launch of a resale program.3
Smartphone
See how brands stack up in thredUP’s Recommerce 100.
Find out more
thredUP’s Recommerce 100 as of March 2022

Retailers Are Embracing Resale To Satisfy Consumer Demand

%
of retail executives say their customers are already participating in resale, up 16 pts from 2020.3
Girl holding a box
Dress
%
of Gen Z and Millennials say they’re more likely to shop with a brand that offers secondhand clothing alongside new clothing, up 11 pts from 2020.2
%
of consumers say brands should play more of a role in reducing fashion’s environmental impact—higher than any other stakeholder group.2
Hangers
Background

Resale Is an Inevitable Part of Retail’s Future

More than half of retail executives without resale programs say they feel behind the curve relative to their peers.3

Retail executives say offering resale is becoming table stakes for retailers.
Chart
Retail executives say resale will be an important part of their business within 5 years.
Chart
Retail executives say every apparel retailer will have a resale component.
Chart
GlobalData 2022 Fashion Retailer Survey
Background

Retailers Get Into Resale for Sustainability, but Stay to Drive Revenue

Top 3 Reasons Retail Execs Want to Get Into Resale3

1To be more sustainable
2To acquire more customers
3To drive revenue
Megaphone Icon
%
of retail execs say they’re interested in resale to reclaim their brand voice that’s being diluted by third-party resellers.3

The #1 Benefit for Retail Execs that Already Have Resale Progams3

1To drive revenue
288% of retail executives who currently offer resale say it’s helped drive revenue.
Plus Icon
Nearly
2 in 3
retail executives say resale is having a positive impact on retail.3
Background

Positive Resale Sentiment Is Increasing Among Retail Executives

%Thumbs Up
of retail executives say they understand the resale landscape more now than they did 3 years ago.3
Executive
%Commerce
of retail execs say resale is getting attention at the Director/Board level.3
Background

The Barriers for Retailers Entering the Resale Ecosystem Are Being Lowered

What retailers say is preventing them from getting into resale3

Resale Is Becoming a Strategic Priority for Retailers

Critical business areas retailers are focused on right now3

Resale is becoming increasingly mainstream as consumers seek out value options, both in terms of price and sustainability. Retailers and brands have a significant opportunity to use resale models to acquire younger and price-conscious shoppers, increase customer loyalty, and drive revenue—all while doing good for the environment.

Resale is the future of retail, and it will be interesting to see which innovative businesses capitalize on this opportunity.

Ken Fenyo, President, Research & Advisory, Coresight Research

Title

A decade in resale

More than a decade later, thredUP’s platform is enabling millions of consumers to buy and sell secondhand clothes at scale and is pioneering a movement for brands and retailers to embrace a more sustainable future for fashion.

Then & Now

Market Growth: 2012-20211

thredUP Growth5

2012
2021
Bag
Number of cities with thredUP shoppers
K
K
Piggy Bank
Total amount saved on thredUP instead of retail
$M
$.9B
Items processed
Total items processed at thredUP
K
M

Resale Industry Milestones

Hand icon
2012
2012
The first wave of venture capital validates resale as an emerging technology to watch.
2013
2013
Resale players begin to differentiate across customer cohorts, from peer-to-peer to managed marketplaces, indicating resale’s growth trajectory.
2014
2014
Venture capital firms invest $100 million+ in the online consignment space, validating a shift in consumer purchasing behavior.
2015
2015
Apparel resale becomes a multi-billion dollar industry, and consumers start cleaning out for cash in droves.
2016
2016
The New York Times declares we are in the “Age of Consignment” as the resale market continues to heat up.
2017
2017
Celebrities further popularize thrift, shedding the secondhand stigma and solidifying its staying power.
2018
2018
Fashion retailers—from mass market to luxury—begin to pilot resale programs for their customers, indicating that secondhand fashion is in demand and going mainstream.
2019
2019
thredUP launches Resale-as-a-Service (RaaS), making resale accessible for brands and retailers.
2020
2020
The pandemic accelerates resale’s growth: 33 million consumers buy secondhand for the first time.
2021
2021
Secondhand is expected to become a global phenomenon, projected to grow 127% by 2026.
Timeline

Methodology

thredUP’s Annual Resale Report contains research and data from GlobalData, a third-party retail analytics firm. GlobalData’s assessment of the secondhand market is determined through consumer surveys, retailer tracking, official public data, data sharing, store observation, and secondary sources. These inputs are used by analysts to model and calculate market sizes, channel sizes, and market shares. Further, for the purpose of this report, GlobalData conducted a January 2022 survey of 3,500 American adults over 18, asking specific questions about their behaviors and preferences for secondhand. GlobalData also surveyed the top 50 U.S. fashion retailers and brands in January and February 2022 to gather their opinions on resale. In addition, thredUP’s Resale Report leverages data from the following sources: Green Story Inc. research and internal thredUP customer and brand performance data.

Disclosure: All third-party brand names and logos appearing in this report are trademarks or registered trademarks of their respective holders. Any such appearance does not imply any affiliation with or endorsement of thredUP. Published: May 2022.

Primary Sources

1. GlobalData Market Sizing: GlobalData’s assessment of the secondhand market is determined through ongoing retailer tracking, official public data, data sharing, store observation, consumer surveys, and secondary sources. These inputs are used by analysts to model and calculate market sizes, channel sizes, and market shares. Market data analysis included in this report was done in February 2022.

2. GlobalData Consumer Resale Survey: The consumer data in this report is derived from a consumer survey of 3,500 U.S. adults. The survey asked them a number of questions about their attitudes towards apparel, secondhand products, and resale products. The sample was designed to be representative of age and income and was also geographically representative. Surveying was undertaken by GlobalData in January 2022. Note: Survey data only sampled U.S. women until 2020.

3. GlobalData Fashion Retailer Survey: 50 U.S. fashion (apparel, accessories, footwear) retailers were surveyed in January 2022 about their Circular Fashion goals.

Secondary Sources

4. GlobalData Consumer Pulse Survey: The consumer data in this report is derived from a consumer survey of 2,000 U.S. adults. The survey asked them a number of questions about the impact of inflation towards general goods and services, apparel and resale products. The sample was designed to be representative of age and income and was also geographically representative. Surveying was undertaken by GlobalData in April 2022.

5. Internal thredUP Customer / Behavior Data

6. thredUP corrected this stat from 42% to 59% on 6/22/22

Retail Sector Definitions

Secondhand: Consumption of all used apparel. Includes both the Resale sector and the Thrift & Donation sector.

Donation & Thrift: A sector of the broader ‘secondhand’ market that includes traditional options such as Goodwill, Salvation Army, and yard sales. These secondhand options are primarily, but not exclusively, offline.

Resale: A sector of the broader ‘secondhand’ market that includes more curated product assortments, often well merchandised and/or higher end. Examples include thredUP and TheRealReal as well as upscale offline players like Buffalo Exchange. These secondhand options are primarily, but not exclusively, online.

Secondhand Products: Consumption of all used apparel, footwear, accessories, books, furniture, entertainment, and beauty.

Department Stores: A type of general retail store, wherein the retailer displays products within distinct departments, often located on separate floors, specializing in defined product areas. Examples include Bloomingdale’s, Macy’s, JCPenney, Nordstrom.

Off-Price: A retailer that sells items at lower prices than those typically charged by retail businesses. Off-price stores typically purchase overstocked goods or make special purchases. Examples include TJ Maxx, Marshalls, Ross, Burlington Coat Factory.

Value Chains: Value stores are a retail format that sells inexpensive items, at a single or limited number of price points. Examples include Walmart, Target, Dollar Tree.

Mid-Priced Specialty: Specialist clothing retailers operating in the middle of the market in terms of price. Not value but not premium or luxury. They tend to be found in malls or traditional main street locations. Examples include Gap, Ann Taylor, J. Crew.

Fast Fashion: Specialist clothing retailers with a fast stock turnaround and whose business models rely on selling high volumes at (usually) inexpensive price points. Examples include Zara, H&M, Forever 21.

Direct-to-Consumer: Specialists and generalists selling clothing directly to the public. Primarily online only. Excludes C2C or auction type sites, and the online side of traditional retail businesses. Examples include Everlane, Warby Parker, Outdoor Voices.

Sustainable Fashion: Apparel that has been produced, sold, and distributed in such a way as to minimize, as much as possible, any damaging social and environmental impact. To be classified as sustainable, a company must reduce negative impacts at multiple stages of the supply chain and of the product’s lifecycle. Examples include Reformation, Allbirds, Eileen Fisher, Patagonia.

Amazon: Amazon’s clothing sales in the U.S., stated at gross merchandise value.

Subscription: Subscription-based services for clothing. Excludes non-clothing elements of subscription models, and rental services. Examples include StitchFix and Trunk Club.

Other: Sales of clothing from all other sources, including grocers and supermarkets, drug stores, duty-free, warehouse clubs, variety stores, other non-clothing specialists, and convenience stores.