As Tariffs Hike Prices, Second-Hand "Thrifting" Apps See Explosive Growth

Most clothes and accessories purchased by American consumers are manufactured outside the country. That means they are subject to tariffs and will become more expensive. 

But a creative alternative has emerged, building on the already popular notion of reselling or 'thrifting' by purchasing 'pre-owned' clothing for a fraction of the original price. Owners are happy to get something for the money invested in stuff they no longer wear, apps are happy to take a cut from an expanding market - and buyers are thrilled to get stylish threads - or furniture - at a bargain price because the inventory is already in the US and not subject to tariffs. JL

Tatum Hunter reports in the Washington Post:

As tariffs on Chinese goods raise prices for clothes, shoes and furniture, Americans are turning to resellers such as Poshmark, Depop and eBay for bargains. These apps let customers buy used clothes, shoes and accessories from vintage businesses, professional “upcyclers” and amateur sellers. While tariffs strain overseas retailers and manufacturers, resale apps are in a good position because much of the used inventory is already in the U.S. Downloads of thrifting and resale apps in the United States jumped 18% in the first quarter. Depop downloads increased 68%, Poshmark grew 28% and eBay by 15%. Tariffs could change the calculus for American shoppers deciding between new and used items.

Sabrina Modelle, a clothing reseller in Northern California, uses the thrifting app ThredUp to find stylish used items. Sometimes she’ll spend weeks watching the same dress get slowly more discounted, until finally she swoops in and buys it for a fraction of the original price.

 

This month, however, she noticed the prices on some of her saved items creeping back up. Sellers were rolling back their discounts as items sold more quickly than usual, she guessed. Even the Goodwill store in her neighborhood seemed packed with shoppers she’d never seen before.

“Since the tariffs got announced, things have been crazy,” Modelle said.

As tariffs on Chinese goods threaten to raise prices for clothes, shoes and furniture, Americans are turning to resellers such as Poshmark, Depop and eBay for bargains. Downloads of thrifting and resale apps in the United States jumped 18 percent on average in the first quarter compared with the previous quarter that ended Dec. 31, according to data from the market intelligence firm Sensor Tower. Some apps saw major gains: Depop downloads increased by 68 percent, while Poshmark downloads grew by 28 percent and eBay by 15 percent.

 

These apps let customers buy used clothes, shoes and accessories directly from small vintage businesses, professional “upcyclers” and amateur sellers with overflowing closets. In many cases, shoppers bid on items, whose condition can range from heavily worn to tags-still-on.

Earlier this month, President Donald Trump levied 145 percent tariffs on most imports from China. He has also eliminated a duties loophole for inexpensive goods that are shipped from China to the U.S. starting May 2, prompting Chinese e-commerce platforms such as Shein and Temu to say they would raise prices. Meanwhile, the delivery company DHL Express said it’s suspending deliveries worth more than $800 to the U.S. until further notice because of tariffs. On Tuesday, he signaled that the tariff rate could come down “substantially,” though not to zero.

Alon Rotem, ThredUp’s chief strategy officer, said tariffs could change the calculus for American shoppers deciding between new and used items. While tariffs strain overseas retailers and manufacturers, resale companies are in a good position because much of the used inventory is already in the U.S., Rotem said.

 

“All the clothing that was imported the first time it was purchased, it’s now sitting in consumers’ closets. And American consumers are sending it into ThredUp,” he said, though he declined to give specific figures.

Poshmark founder and CEO Manish Chandra said tariffs will make secondhand marketplaces an “increasingly valuable and cost-effective resource” for U.S. shoppers. OfferUp chief business officer Nathan Garnett said buying used items from people nearby feels more practical than traditional retail during times of financial uncertainty.

The RealReal, eBay and Grailed didn’t respond to requests for comment, and Depop declined to weigh in.

Environmentalists have been preaching for years the value of buying secondhand to reduce waste and microplastics, and many creators and small businesses urging shoppers to cut back on new goods have amassed large social media followings. Nonetheless, spending on fast fashion has generally increased. Tariffs could shift that story, shoppers and retail expert say.

 

Other big economic inflection points — such as the coronavirus pandemic or Biden-era inflation — also led to changes in consumer behavior, with many people opting to buy less or buy used, said Kassi Socha, a retail analyst at the market insights firm Gartner. But tariffs this high are a novel situation, and the size of their impact could surprise forecasters.

“I think tariffs have the potential for an outsize consumer behavior change that could exceed what we’ve seen in some recent years,” Socha said.

Lindsay Farbent, a lawyer in Connecticut, said she downloaded Grailed and the RealReal — both marketplaces for used fashion — after hearing how tariffs might affect the price of some of her favorite brands. She doesn’t want her closet to stay stagnant, she said, but the prospect of higher prices combined with a potential recession has her rethinking her shopping habits.

 

“I’m eco-conscious and all of that, but I still bought a lot of new stuff,” the 28-year-old said. “It feels like this is not the time to be doing that anymore.”

 

The secondhand market has grown quickly in recent years, but shopping habits die hard. Many consumers like the idea of buying used goods and helping the environment, but they tend to forget their ideals when faced with cheap new goods and a constant cycle of internet microtrends, said Rachel Kitchin, a senior campaigner with the climate activism organization Stand.earth. She’s cautiously optimistic that higher prices could nudge some shoppers to think harder before clicking “buy.”

“We’ve been screaming about overproduction and overconsumption for many years,” Kitchin said. “Now if you want to buy an outfit for Coachella, you suddenly have to think about where it’s coming from.”

 

Secondhand sellers from Texas to California said they’re expecting — or already seeing — a spike in demand for used goods. For Lauren Cooley, founder of Club Preloved, a network for small resellers based in Britain, it’s tempting to see the throngs of new thrifters and feel a little vindicated.

“Now is the time to be like, ‘Yeah, I told you so,’ Cooley said. “We are in an environmental crisis, and things like the tariffs are making people realize that.”

But there’s a caveat for shoppers and resellers alike: No one knows for sure what effect the tariffs will have on supply chains, Gartner’s Socha said.

Cooley’s network of resellers, for instance, could be hit hard by the cost of shipping products from Britain and pass the cost to American consumers. Extra demand for used goods could raise their prices enough to make thrifting too expensive for some shoppers. That’s what happened to used cars during the pandemic, noted Ivan Drury, director of insights at the car-shopping site Edmunds.

 

Big brands might also see tariffs as an excuse to drop their sustainability programs, offsetting the environmental benefit of thrifting, Stand.earth’s Kitchin said. The White House could change tariffs on Chinese goods at any moment, which could deflate interest in used goods just as quickly as it ballooned, Socha cautioned.

Longtime thrifters like Modelle are riding the wave.

“Maybe thrifting was getting more popular anyway,” she said. “Or maybe people are getting squeezed really tightly.”