©annastills via Canva.com
May 28, 2025
How Much Will Secondhand Sales Benefit From Trade Conflicts?
The onslaught of tariffs and the closing of the de minimis loophole is expected by many to be a boon to resale platforms and secondhand sales overall, but the gains may face limits.
On its first-quarter analyst call in early May, James Reinhart, ThredUp’s CEO, said that by far the biggest benefit to resale selling is the closing of the de minimis loophole that weakened the value proposition of sites like SHEIN and Temu.
He believes the de minimis loophole won’t likely return. He said, “Duty-free ultra-fast fashion that has flooded the U.S. market over the past few years undoubtedly put some pressure on our price competitiveness. We believe the closure of the de minimis exemption is likely to cause higher prices for these goods and to reduce production volumes, both of which could be a positive for ThredUp.”
Reinhart also believes that moves by SHEIN and Temu to cut their advertising spend on Meta and Google platforms should reduce customer acquisition costs.
He estimates the tariffs may be more temporary, but they still offer a near-term tailwind. Reinhart said, “If the price of new clothing goes up because of these tariffs, we believe this enhances the comparative value proposition for consumers who shop for used clothing on ThredUp.”
Finally, he noted that demand for resale had been “accelerating” prior to the trade disruptions, also driven by eco-consciousness and the appeal of finding one-of-a-kind items.
ReturnPro’s “The State of Consumer Returns” 2025 report found more than half (55%) of U.S. consumers would be more likely to buy from the secondary market to help offset rising costs due to tariffs. Quality uncertainty and return/refund policies were found to be the top concerns around used purchases.
Supply rather than demand may be a bigger hurdle for resellers.
Shawn Grain Carter, professor of Fashion Business Management at FIT, told Elle that with consumers likely holding onto their apparel to save money amid possibly broader inflationary pressures, resale sites are “not going to be able to get the supply that they need to keep everything fresh.”
On a podcast, eMarketer Senior Analyst Sky Canaves said supply has already been an issue with the flood of resale platforms arriving, creating pressures to reduce seller fees. She said, “The platforms are really trying to create better incentives for consumers to sell on them.”
Discussion Questions
Do you see secondhand sales benefiting significantly or more modestly from the tariff situation and the closing of the de minimis loophole?
Does the trade disruption have a negative effect on resale supply in some ways?
Poll
Loading …BrainTrust
Gary Sankary
Retail Industry Strategy, Esri
Patricia Vekich Waldron
Contributing Editor, RetailWire; Founder and CEO, Vision First
Lisa Goller
B2B Content Strategist
Recent Discussions
More Discussions
Has Kroger Discovered the Limits of Automated Warehouses?
Kroger is winding down its relationship with Ocado, citing cost overruns and a reorganization of its…What Can Ross Do To Cement its Recent Success Story?
Ross has seen strong sales and projects this trend to continue. How can it best cement…Is Cyber Week Set To Smash Sales Records This Year, as Salesforce Suggests?
Salesforce suggests that Cyber Week will set records in terms of sales this year. Is this…
We ran the research on this for ThredUP and our modeling found that there will be a bump in secondhand spending because of tariff-induced price rises. We are already seeing this to some extent, which is related more to confidence as most price increases have not yet filtered through, but it will become more pronounced if and when prices rise.
As for supply: the issue is more with quality supply than supply per se. I don’t agree that inflation makes more people hold on to all their apparel; what we saw during the last period of rising prices is that more people turned to resale to get some extra cash that they could then spend on new (or other secondhand) apparel.
I agree that more people turned to resale to get some extra cash.There is a well-merchandised – and huge – consignment shop near me that had to stop taking consignments for the month of May because they had too much inventorycoming in.
Tariffs, the end of de minimis, layoffs and plummeting sentiment will inspire more consumers to embrace thrift stores. Buying secondhand may seem safer than buying new due to price increases, supply chain jolts and market uncertainty. The apparel category in particular is jittery amid tariffs, as major markets for production like China and Vietnam could be hard hit by the global trade war.
I’ll take option 2 – “large but not that large” – for $200 Alex (no tariffs on the winnings …right?) The issue here is to what extent people will sub ‘pre-owned’ goods for new, and my thought is “some, but not totally”. There’s also the issue that a surge in demand for 2H will raise their price(s)…diminishing the differential advantage.
I think it’s a reach to assume that consumers will turn to secondhand merchandise because of tariffs. People who already buy secondhand certainly will, but the rest of shoppers? Maybe. Probably not.
Resale shoppers have specific reasons for their purchasing decisions, not all are cost related. They are looking for of-kind, vintage, eco, treasure-hunting experiences, etc
There is a great deal of variation based on the specific goods and market conditions. Electronics and apparel secondhand sales may rise as new items become more expensive. The overall impact, however, will also be determined by consumer preferences and the availability of affordable alternatives.
“affordable alternatives”… will be relative in many ways.
Resale platforms are ready to pounce on the ‘no tariffs’ as a draw for buyers. BUT the platforms may get greedy and continue to up the % commission they take from the re-sale transactions. When that % goes up (and it’s by product category), then the Resellers may also up their original selling prices.
No one is immune to the discussion of margins.
The ads have already hit, reminding consumers that there are no tariffs on second-hand apparel. I think the message will resonate well with many shoppers who have relied on low-cost disposable apparel that has flooded the market in recent years.
Retailers have made significant progress learning how to process and resell these items, and consumers are getting more comfortable with buying secondhand clothing. Tariffs and economic headwinds are propelling growth in this segment. Personally, I believe that from a sustainability perspective, that’s a good thing.
This will be a big win for secondhand product! No, wait…not so big. Uhhmmm…big. Nooooo… What day is it? What time is it? Any court announcements lately? Oh…the courts have spoken! The rules changed yet again!
Yes, secondhand product will see a bump. But maybe not as big as we thought a day or two ago, or a week or two ago. At the moment we have no clue where the tariff conversation will end up, but I’m guessing that 2026 will see higher tariff rates than 2024. More expensive products may encourage people to hang on to their purchase a little longer to get their money’s worth. Maybe that affects the secondhand supply chain. It certainly provides secondhand value a higher profile in customer thinking.
Philips just launched a program, “Philips Fixables” that supports the right to repair movement and reduces product waste. They provide files to 3D print replacement parts for their products. Extending product life and reducing the need to replace may be even more powerful than purchasing recycled product.
The popularity of second hand goes beyond tariff disruption. Younger generations are cash strapped. Even fast food is becoming a budget line item to save up for. Having to constantly watch your pennies has changed the outlook of so many Gen Zs — and older generations too. Labels no longer matter. Buying a good quality used item that will last is not just on trend, but a lifestyle choice that will shape our society for generations to come.
“Labels no longer matter”… a double edged sword in marketing if you are a known Brand.
I’m not convinced the society shaping will be that fast or that permanent.
The “I’m an Influencer as a career”… is/was far too embedded in USA, and the celebrity influence is still there.
2nd hand buying incorporated into a wardrobe or for household items… but I don’t feel it yet as real lifestyle choice of the masses.
2nd hand selling is a version of flipping for scarce items. Alt revenue stream for Influencers, esp for the “dupe” categories. (Dupes are labels that matter to people).
To think that tariffs will change consumer shopping habits forever more is not realistic. It’s a stretch.
While tariffs may motivate some people to consider selling old clothes or checking out secondhand shops to buy, this is likely temporary for most consumers.
Gen Z shoppers may be another story as their reason for shopping secondhand is environmentally driven. This trend could last with this consumer group. Time will tell.