How Tariffs and AI Are Shaping the Future of Secondhand Fashion:

ThredUp’s latest resale report reveals how economic policies and technology are influencing the booming secondhand fashion market.

If you love shopping secondhand, you’re not alone! According to WWD, ThredUp’s latest Resale Report, the secondhand clothing market grew by 14% last year—the biggest jump since 2021. And the trend isn’t slowing down anytime soon. From 2024 to 2029, resale is expected to keep growing at a steady 9% per year.

So, what’s driving this shift? A mix of changing shopping habits, economic policies, and new tech tools is making secondhand shopping more appealing than ever.

ThredUp's new resale report shows resale may benefit from tariffs. ThredUp

Tariffs Could Push More Shoppers to Secondhand

One big factor in resale’s rise could be tariffs. ThredUp’s report suggests that increasing tariffs on imported clothing might make fast fashion more expensive, leading budget-conscious shoppers to consider secondhand options. In fact, 62% of consumers said they’re worried about higher apparel prices due to tariffs, and many are already looking for more affordable alternatives like resale.

For resale platforms like ThredUp, this could be a game-changer. Since secondhand items don’t carry the same import taxes as new clothes, they might become an even more attractive option for shoppers trying to save money. Plus, retailers are feeling the heat—80% of retail executives predict tariffs will disrupt supply chains, and many are exploring resale to stay competitive.

AI Is Making Secondhand Shopping Easier Than Ever

While pricing plays a big role, tech innovations are also reshaping the secondhand shopping experience. ThredUp is leaning into artificial intelligence to help customers navigate its massive inventory. AI-powered features like Style Chat allow shoppers to search for items using everyday language, like “I need a dress for a fall wedding in New York.” Another tool lets users upload images to find similar secondhand items instantly.

This kind of personalization is key—40% of shoppers say they feel overwhelmed by the sheer number of options when browsing resale platforms. By improving search and discovery tools, AI is helping to make secondhand shopping feel as easy and intuitive as buying new.

Shoppers Are Rethinking Fast Fashion

With prices rising and better tools making resale more accessible, many shoppers are rethinking their relationship with fast fashion. ThredUp’s report found that 25% of consumers hesitate to buy new clothing if it lacks strong resale value. Plus, nearly half of shoppers have already cut back on low-quality, cheap apparel because they know it won’t hold up for resale.

Brands like Lululemon, Patagonia, and Reformation are leading the charge in the resale space, proving that high-quality, durable clothing is in high demand. And with 76% of retailers considering resale programs, we might see even more major brands jumping on board soon.

What’s Next for Resale?

The resale market is only getting bigger, and with tariffs, AI, and sustainability concerns driving change, we’re likely to see even more shifts in the coming years. Retailers are facing pressure to adapt, and secondhand shopping is becoming more mainstream than ever.

Whether you’re already a secondhand pro or just getting started, there’s never been a better time to embrace resale. With lower costs, smarter search tools, and a growing selection of high-quality pieces, the future of fashion is looking more sustainable—and more affordable—than ever.