Policy pressure is turning resale into a compliance lever, but most apparel retailers lack the infrastructure to respond at scale, according to ThredUp’s 2026 Resale Report, released this week.
More than half (66 percent) of retailers surveyed view resale as a “regulation solution” and 36 percent see it as a tool to reduce financial liability and compliance fees in the short term.
The online consignment and thrift store and resale-as-a-service (Raas) provider’s annual report offers insights into how consumers and brands perceive the secondhand market. The report is based on third-party retail analytics firm GlobalData’s assessment of the secondhand market, informed by consumer surveys, retailer tracking, public data, data sharing and secondary sources. It also leverages internal ThredUp’s customer and brand performance data.
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While the report describes resale as one of the “most actionable paths” a brand can take to reduce waste and boost circularity, only 16 percent of companies said they are ready to scale resale immediately. ThredUp said 38 percent of respondents cite logistics and operational gaps as roadblocks, but 32 percent recognize RaaS for being a way to bypass friction and accelerate readiness.
More than half (58 percent) of retailers said lacking a resale presence creates a “permanent structural disadvantage,” and 32 percent consider resale as an essential to remain competitive. This is especially true for retailers targeting younger cohorts. The report found that 60 percent of Gen Z and millennial consumers have more trust in brands that integrate resale features into their business. Overall, 47 percent of consumers said they are more likely to make a first-time purchase if trade-in credit is available.
“Trade-in programs are no longer a brand ‘perk’; they are the new baseline. Resale has officially moved from a sustainability experiment to a primary lever for customer acquisition and long-term relevance,” said Alon Rotem, ThredUp’s chief sustainability officer.
For this report, GlobalData also conducted a January-February 2026 survey of 3,268 American adults, asking specific questions about their behaviors and preferences for secondhand.
Value, access, individuality, discovery and sustainability are the key factors driving consumers to the secondhand market. In 2025, the global secondhand market grew approximately 13 percent year-over-year and secondhand represented about 10 percent of global apparel spend.
For a growing number of consumers, secondhand is the starting point in their shopping journey. The report said 48 percent of consumers browse resale before buying new, and 58 percent of Gen Z and 55 percent of millennials prioritize secondhand over new.
Economic pressures are also “pushing resale from optional to essential.” The report found that 72 percent of consumers said rising prices are impacting their apparel spending, and 27 percent said they plan to offset these increases by increasing their secondhand purchasing.
With price and value top of mind, the secondhand market is driving consumers to reexamine what they purchase from new retail. For example, 60 percent of consumers said resale value is a key factor when buying new apparel—up 13 percentage from the prior year. And 39 percent said they’d buy new apparel if they know it has a high resale value. Conversely, 49 percent of young consumers said they’ve already reduced purchases of low-quality apparel because it cannot be resold.
The data reflects the growing trend of sellers monetizing wardrobes. The report found that 57 percent of sellers resell their apparel for income. This grows to 61 percent among Gen Z.
The top 5 most shopped brands, ranked by total order volume, are J.Crew, Zara, Ann Taylor Loft, Old Navy and Gap. Brands seeing a comeback include Lilly Pulitzer, Everlane, Michael Kors, Lands’ End and J.Jill.
The report also examines how Gen Z is using AI shopping tools to manage their secondhand shopping process. Sixty-three percent said they’re comfortable with agentic buying and 51 percent use AI-powered tools like visual search.
However, consumers of all ages are open to using AI to reduce friction points, which may create a more competitive market. The report found that 69 percent of shoppers are ready to delegate 24/7 monitoring across resale platforms to find specific items, 59 percent are likely to use AI agents that can independently negotiate prices, and 66 percent of sellers are comfortable allowing AI to manage their “digital closet”—identifying what to sell based on market demand.
“Agentic technology is fundamentally reshaping ecommerce, shifting consumers from browsing and filtering to AI-driven discovery, negotiation, and trust in secondhand,” said Dan DeMeyere, ThredUp’s chief product and technology officer.
