In China and the US, 59% of internet users are comfortable using secondhand clothing items, making those countries where the resale fashion economy is most ripe for growth.

Brands have an advantage over peer-to-peer marketplaces: They can more easily gain consumer trust by guaranteeing the authenticity and condition of their secondhand offerings.

And with luxury brands continuing to raise their prices, buying secondhand allows consumers to get access to the goods they covet without emptying their bank accounts. We forecast the US online fashion resale market will grow by 46.6% YoY in 2022 to $15.50 billion, but most of this growth will be driven by existing buyers spending more, rather than new shoppers entering the market.

Insider Intelligence spoke with Pooja Sethi, senior vice president and general manager of Resale-as-a-ServiceⓇ at thredUP, on how the retail ecommerce industry can enable consumers to buy secondhand clothing online.

Building the market: The growing number of retailers entering the space will build awareness and interest in secondhand goods. More retailers accepting trade-ins should expand the selection of available secondhand items, which will attract more consumers to resale. Resale programs create a flywheel effect, as buyers become sellers and vice versa.

Sustainability is at the heart of the brand positioning for outdoor names such as Patagonia, The North Face, and REI, but this also allows retailers to own their own secondhand markets. That could be huge, as we expect sales on online fashion resale platforms to represent 10.0% of all US ecommerce apparel and accessories sales by the end of 2025.

“Brands can more easily gain consumer trust by guaranteeing the authenticity and condition of their secondhand offerings,” she said. “Resale can also improve relationships with consumers over the long term if brands can offer a consistent shopper experience for both new and used goods.”.

On today's episode, we discuss how much grocery shopping is being done online, where, and what's next for the space. We then talk about whether social media works better at convincing folks to buy things than email or text message, whether Urban Outfitters' new secondhand goods app can compete, and if virtual try-on technology will become the norm. Tune in to the discussion with eMarketer director of forecasting at Insider Intelligence Cindy Liu.

Cowen expects online sales of secondhand fashion to surpass sales from physical stores for the first time in 2022. However, growth in the number of resale buyers will be more modest.