As inflation continues to pressure household budgets, many consumers are looking for more affordable ways to shop for apparel. That shift has helped accelerate the apparel resale market, which is projected to continue growing as shoppers look for value outside traditional retail. In 2025, the U.S. resale grew 19%, compared to 3.6% growth in the broader retail clothing market. 

Secondhand retail gives customers a way to buy quality apparel while supporting their interest in affordability and sustainability. Through online shops like Poshmark and rental services like Nuuly, brands are becoming more visible to shoppers who may not have purchased from them through traditional retail channels. Today’s apparel resale market is also being shaped by AI-enabled tools and digital marketplaces, which are changing how secondhand products are evaluated and sold. 

Today’s Apparel Resale Market

For retailers, resale is no longer separate from the broader customer experience. It’s now influencing how shoppers discover brands and assess product value beyond the first purchase.   

Reframing Secondhand Shopping 

The use of “thrifting” has become increasingly popular and is a way for customers to find “vintage” items in stores like Goodwill and Plato’s Closet. For many shoppers, this hobby provides a unique experience, where there’s a thrill in discovering and purchasing items that feel one-of-a-kind. 

Many Americans are taught the idea that younger and newer is better than older and used, but that mindset is shifting as retail places more emphasis on sustainability and value. By positioning secondhand shopping as  “resale” rather than “reuse,” retailers can make the experience feel more intentional and aligned with how today’s shoppers think about value. 

The Sustainability Promise and Challenge of Circular Retail 

Because resale extends the useful life of existing products, it can reduce reliance on new production and delay disposal. This is called circular retail, a practice focused on keeping products in use longer rather than moving them quickly from purchase to disposal. It aligns with growing consumer interest in sustainability by emphasizing reuse and product longevity. 

Still, resale’s environmental impact depends on how consumers shop. If resale encourages shoppers to buy items they don’t need or weren’t actively seeking, it can still contribute to overconsumption. One study on secondhand fashion customers found that high overall consumption and short garment retention can actually challenge resale’s environmental benefits. For resale platforms and retailers, this creates an opportunity to align messaging with more responsible consumption.  

Why Brands Are Building Their Own Resale Programs 

Brands initially treated resale as a third-party marketplace activity that happened after the initial sale. Now, branded resale programs give retailers a way to keep customers inside their ecosystem while protecting brand presentation. These programs can also offer insight into product durability and demand, giving new shoppers a lower-risk entry point to try a brand. 

Patagonia’s “Worn Wear” program is one example. Through the program, Patagonia takes back and resells repaired products, helping keep apparel in circulation while maintaining a direct relationship with customers. More brands are now rebuying and reselling their own apparel to better manage how their products appear in secondhand markets. 

As of 2026, 162 brands offer resale shops. Among retailers with a resale program, nearly two-thirds of executives estimate that resale will generate at least 10% of total company revenue within the next five years. 

This is especially important for premium and luxury brands. Resale can introduce aspirational customers to a brand at a more accessible price point, but unmanaged resale can also create pricing pressure and authentication risk. By launching trade-in or resale programs directly, brands can capture more value after the first sale and create a more controlled resale experience. 

How Technology is Changing Resale 

Technology has transformed the way that companies resell products, particularly through AI-enabled tools and online resale platforms. Processes that were once highly manual are becoming more efficient through tools that support product verification and listing quality. These capabilities matter in resale because each secondhand item requires individual evaluation. Accuracy and trust are central to the customer experience.

The RealReal, one of the largest online marketplaces for pre-owned authenticated luxury goods, is continuing to integrate AI into its resale processes. AI can accelerate authentication, reducing the time and labor traditionally required to verify products. Two examples are Shield, a machine-learning model that can examine more than 50 attributes each time, and Vision, a tool that uses microscopic imaging to analyze design details and identify potential counterfeit items. Because authenticity is a major factor in luxury purchasing decisions, AI-powered authentication can help strengthen customer confidence while making verification more scalable. 

eBay has also used AI to improve its platform and seller experience. The company is currently testing an AI shopping agent that can deliver real-time, personalized product recommendations based on user shopping preferences. The eCommerce platform is also using AI to generate listings and categorize products, reducing some of the manual work sellers have historically managed on their own. 

What Apparel Retailers Should Consider Next 

By understanding customer expectations, retailers can better assess how resale affects their brand and where it may fit into their broader customer strategy. For some brands, that may mean buying back and reselling their own products. For others, it may mean testing targeted initiatives, such as Gap’s 15% discount for customers who trade in their used closing through its partnership with ThredUp. 

As the apparel resale market continues to grow, brands have an opportunity to participate more intentionally. Stronger resale strategies will help retailers capture demand and extend customer relationships beyond the first purchase – all while supporting a more responsible view of product value. 

Contributions from Kate Sinha