US tariffs together with AI are expected to boost sales for second-hand clothing, an executive at ThredUp, one of the largest online resale sites of such has predicted.
According to The Guardian, AI will boost sales of second-hand clothing as the sector maintains a growth trajectory after global sales rose by 15% in 2024. The sales growth was more than four times faster than the wider market.
Second-hand clothing sales expected to jump by 11%, thanks to AI
Second-hand clothes sales for online reseller ThredUp have increased to account for 9% of total fashion sales. The value of the second-hand clothes market for the company, according to a report by GlobalData analysts has shot up to $227 billion.
As the market evolves, clothing resellers have taken a chunk of the major clothing retailers market share in the last five years, if the fashion sales value are to be considered.
Factoring in AI, in 2025 sales of second-hand clothes are expected to increase by a further 11% supported by new technologies such as search tools powered by AI that are expected to help shoppers to find the items they want.
Tariffs being brought up by the President Trump administration on goods made in China will likely push up clothing prices. Such a move will see more US citizens with little disposable income to seek out pre-loved clothes.
According to ThredUp chief executive officer, James Reinhart, the market of second hand clothes will have a break out this year compared to the other years.
“The market will not likely have the same downward pressures from tariffs that the rest of the industry will face and when the American consumer deals with more insecurity, the pursuit of value is heightened.”
Reinhart.
Reinhart also believes that new AI enabled search tools that can match outfits together and identify and locate second hand clothes from a photo will improve second hand shopping experience to a greater extent.
Technology drives second hand clothing sales
According to GlobalData, more people are now said to be prepared to buy second hand than ever before with the figure in 2024 now at 58%, which is 6% up from the prior year.
Young people are driving the growth accounting for 68% of the population of those who purchased second hand clothes in 2024. The growth in second hand shopping was driven by technology apps such as Vinted, Depop, ThredUp and eBay.
This week Vinted will open its first high street pop-up in London, where shoppers can view, but not immediately take home, some collections curated by influencers including Susie Lau and Victoria Magrath. Retailers from Primark to Selfridges are also offering vintage sections in their stores.
Despite all the facts, the ThredUp CEO admitted that growth in the sale of pre-loved clothes performed below expectations, failing to meet a goal of accounting for 10% of the global fashion market.
Reinhart said, “In making those forecasts, the industry had underestimated the penetration of Shein and Temu.” The two fast growing online retailers have offered budget conscious shoppers an alternative to second hand clothing.
The Trump administration is thought less likely to adopt legislation similar to that recently introduced in the EU to control textile waste with mandated collection points that could help drive resale.
At ThredUp itself, sales rose just 1% to $260 million last year but it made a $40 million loss from continuing operations, even after selling off its loss making European operation.
According to its CEO Reinhart, ThredUp had been profitable on an underlying basis for more than a year and claimed that the narrative of resale not being able to make money is outdated.
The UK based riv Depop increased sales by 31% to £71.3 million in 2023, when it’s losses narrowed more than a quarter to £48.6 million. However, the online second hand fashion reseller Vinted reported a 61% rise in sales to almost £513 million in 2023 taking the company out of the red for the first time.
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