Table of Contents

1. Key Highlights
2. Introduction
3. Why secondhand dominates holiday plans
4. Who is driving the resale surge
5. What shoppers value: price, uniqueness and reduced stigma
6. Seasonal category trends: dresses, sweaters and the activewear anomaly
7. Supply-side behavior: the closet as capital
8. Operational responses: timing, curated programs and peer-to-peer mechanics
9. Practical advice for sellers: timing, preparation and pricing
10. Practical advice for buyers: how to shop secondhand for the holidays
11. Retail and brand implications: competitive, collaborative and circular opportunities
12. Economic and behavioral context: inflation, social calendars and shifting norms
13. Risks and limits: authentication, returns and the proof of intent gap
14. The role of peer-to-peer marketplaces and Direct Listing
15. What this means for the 2026 holiday season and beyond
16. FAQ

Key Highlights

• 62% of U.S. adults intend to shop secondhand this holiday season, with shoppers planning to allocate an average of 37% of gift budgets to previously owned goods; Millennials and Gen Z plan even higher shares (45% and 43% respectively).
• More than half (53%) have sold or expect to sell belongings to fund holiday purchases; ThredUp’s marketplace saw a 37% jump in holiday unit sales in 2025 versus 2023, with dresses and sweaters among the fastest-growing categories.
• Motivation extends beyond price: uniqueness and occasion demand—plus reduced stigma around gifting used goods—are driving secondhand adoption, while inventory timing remains the primary operational constraint for resale platforms.

Introduction

Holiday shopping no longer unfolds along a single track of new goods and full-price purchases. A convergence of economic pressure, shifting taste preferences and structural changes in how consumers treat their closets has pushed secondhand shopping from a niche to mainstream behavior. ThredUp’s 2026 Holiday Resale Report captures this shift with hard numbers: nearly two-thirds of American adults plan to include used items on their holiday gift lists, and more are turning their own wardrobes into a source of holiday cash.

The numbers matter for buyers, sellers and legacy retailers. Consumers are reallocating substantial portions of their gift spending to resale, while an increasing share of households expect to fund holiday budgets by selling clothes, bags and accessories. For resale marketplaces, the opportunity is clear but conditional: inventory is sourced from millions of closets, so timing, category mix and selling experience determine whether demand can be met. This report unpacks the data, explains what shoppers say they want, and draws practical implications for anyone participating in the holiday economy—buyers, sellers and traditional retailers alike.

Why secondhand dominates holiday plans

Price remains an immediate driver: shoppers balancing inflationary pressure and higher energy costs are actively seeking ways to stretch budgets. ThredUp found that 62% of U.S. adults plan to shop secondhand during the holiday season, and those shoppers expect to devote on average 37% of their gift budgets to previously owned items. For younger cohorts the share is higher—45% for Millennials and 43% for Gen Z—indicating a generational tilt toward resale as a normal shopping channel rather than an occasional workaround.

Yet cost explains only part of the story. Survey respondents ranked both value and uniqueness among their top three reasons for preferring secondhand gifts: 55% cited value and 52% cited uniqueness. Millennials, in particular, prioritized uniqueness (59%) over price (52%), showing that for many shoppers the emotional and cultural cachet of one-of-a-kind or vintage items rivals traditional price-based motivations.

Holiday-specific dynamics intensify demand. The report notes consumers expect 2.2 times as many social occasions in November and December compared with an average two-month period, creating more reasons to buy occasionwear and gifts. Thirty-two percent of respondents plan to buy secondhand clothing specifically for events or special occasions—with Millennials and Gen Z far more likely to do so (47% and 44%, respectively). That pattern helps explain the outsized holiday growth ThredUp recorded for dresses and sweaters.

The holiday period also increases practical incentives to buy used. Thirty percent of respondents said secondhand would help them buy for more people, and 29% said it would help them get a preferred gift—both substantial jumps from recalled 2025 figures. For consumers who want to make their budgets go further, resale allows broader gift coverage without automatically lowering perceived quality.

Who is driving the resale surge

The youngest adult cohorts are the most active. Millennials and Gen Z stand out both as buyers and sellers. When presented with a choice between a one-of-a-kind, well-conditioned secondhand item and a new mass-produced equivalent, 55% of all respondents preferred the secondhand item. That preference rises to 69% among Millennials and 66% among Gen Z. Beyond preference, these cohorts are also more likely to convert intention into action: 69% of Millennials and 66% of Gen Z reported having sold items or expecting to sell belongings to pay for holiday purchases.

Older cohorts are participating too, but at lower rates. The broad appeal—62% overall intending to shop secondhand—indicates resale has crossed past early-adopter fringes. The breakdown suggests that while entry and scale are propelled by younger shoppers, older shoppers are increasingly comfortable with resale for reasons that include price, sustainability and the hunt for unique gifts.

Marketplaces that specialize in peer-to-peer and curated resale arrangements—Depop, Poshmark, The RealReal, Vinted and ThredUp—have created channels that match different buyer motivations and seller expectations. Peer-to-peer spaces appeal to younger users who value direct interaction, low fees and trend-driven buys, while curated platforms attract buyers seeking authenticated luxury, condition-verified items or a polished shopping experience. ThredUp’s Direct Listing initiative, which forgoes seller fees, aligns with the former logic by offering greater control and full receipt of sale proceeds to individual sellers.

What shoppers value: price, uniqueness and reduced stigma

The classic stereotypes about buying used—stigma, inferiority, hygiene worries—are fading for a large share of buyers. In ThredUp’s survey, 62% of respondents said finding out a gift they loved was secondhand would make no difference; another 22% said they would like it more. Combined, that’s 84% who would be as happy or happier with a secondhand gift.

Two distinct value propositions are evident. The first is financial: resale often delivers quality at a lower cost, enabling shoppers to broaden gift lists and secure preferred items for less. The second is experiential: for many, secondhand equals uniqueness. Millennials especially prize items with provenance or a distinct aesthetic that stands apart from mass-produced equivalents.

Occasionwear also factors into the equation. Buying secondhand for events—parties, family gatherings, seasonal celebrations—fulfills practical needs. It reduces the perceived waste of one-off purchases because the item is used only a few times and can be put back into circulation quickly. The data show this logic in practice: dresses and sweaters experienced notably high holiday growth on ThredUp’s marketplace.

Taken together, price and uniqueness make secondhand attractive both emotionally and financially. That combination reduces the sting of parting with closet items to fund holidays: selling an unused handbag or unworn coat not only raises cash but frees space for new gifts to enter circulation.

Seasonal category trends: dresses, sweaters and the activewear anomaly

ThredUp’s marketplace data for the 2025 holiday period—defined as Nov. 1 through Dec. 24—reveals category-specific dynamics that matter for sellers deciding what to list and for buyers seeking the best bargains.

• Dresses and one-piece garments rose 47% in holiday unit sales compared with the prior holiday period. Demand for occasionwear during the holidays, driven by parties and gatherings, likely explains the spike. Dresses are often condition-tolerant items that retain appeal when well-laundered and well-presented for resale.
• Sweaters increased 41% in holiday units, substantially outpacing their full-year growth. Sweaters serve dual winter and holiday use, making them attractive buys for shoppers seeking function with seasonal style.
• Activewear rose 16% during the holidays even though full-year units declined 2%. The phenomenon suggests that consumers may selectively buy athletic items for holiday gifting—branded leggings, retro sportswear—or that activewear can be a reliable gift choice that appeals across age groups.

The activewear uptick during holidays, despite a full-year dip, points to a more nuanced purchasing calculus: certain categories may underperform overall but spike in seasonally meaningful windows. Sellers who time submissions accordingly can exploit these demand cycles.

Inventory timing emerges as the central operational challenge for resale marketplaces. Unlike retail brands that can produce to meet forecasted demand, ThredUp’s supply depends on what sellers submit to the platform. The company has tested targeted tactics—seasonal bags to encourage sellers to submit cold- or warm-weather items when demand is strongest—in order to improve alignment between incoming inventory and shopper needs.

Supply-side behavior: the closet as capital

ThredUp’s report frames a structural reality: for many households, the closet is both a financial asset and a source of inventory. More than half of respondents—53%—have sold or expect to sell belongings to help fund holiday purchases. The share is highest among Millennials (69%) and Gen Z (66%). At the time of the survey in September, 7% of respondents had already sold items; another 46% said they definitely or probably would.

That seller activity benefits resale platforms on two fronts. First, it increases available inventory during peak demand windows. Second, it reinforces the marketplace model by converting buyers into sellers and vice versa, sustaining a multi-directional flow of goods. Platforms that lower friction for sellers—quick clean-out programs, no-fee listings, prepaid shipping—position themselves to capture supply when households decide to monetize possessions.

ThredUp’s operational initiatives illustrate how marketplaces pursue that supply. Clean Out programs, which simplify the process of sending items to resale, are reported as healthy and growing. Direct Listing, ThredUp’s peer-to-peer option, gives sellers full control and retains the full sale price for them by charging no seller fees. Among high-earning items on Direct Listing are handbags from Tory Burch, Coach and Longchamp and clothing from Dôen, Veronica Beard and Ulla Johnson—brands that combine recognizability with sustained secondary-market demand.

Platforms that can predict and influence the timing of seller submissions will have a competitive advantage in converting intent into available inventory. The challenge is behavioral: sellers must be motivated to part with items before peak demand—otherwise, marketplaces risk mismatches where shoppers seek dresses and sweaters that are simply not in the pipeline.

Operational responses: timing, curated programs and peer-to-peer mechanics

ThredUp’s response to the seasonal mismatch between seller supply and buyer demand offers a practical playbook for resale operators and an instructive model for other marketplaces.

1. Timing incentives. ThredUp tested seasonal bags that encourage sellers to submit items aligned with the forthcoming season. For example, in autumn sellers receive prompts or packaging that focus on cold-weather garments. Encouraging early submission increases the likelihood that dresses and sweaters will be available when holiday shoppers search for them.
2. Simplified seller experience. Programs that streamline the clean-out process—prepaid shipping labels, easy scheduling of pickups, clear seller pricing expectations—reduce friction that otherwise delays inventory flow. Sellers under time pressure during the holidays are less likely to go through a multi-step listing process; consolidated programs lower the activation barrier.
3. Peer-to-peer offerings. Direct Listing gives sellers more control and eliminates seller fees. Peer-to-peer models resonate with sellers who want to capture the full sale price, even if that sometimes reduces marketplace take. For buyers, peer-to-peer channels expand selection and may reveal rare, high-margin items that curated platforms miss.
4. Category-level curation. Platforms can curate promotional pushes (email campaigns, landing pages, editorial features) around categories with predictable holiday demand—occasionwear, sweaters, outerwear—seeding buyer attention and nudging sellers to list matching inventory.
5. Authentication and condition verification. For higher-value categories—designer handbags, luxury apparel—the need for authentication and condition grading remains acute. Marketplaces investing in robust verification reduce buyer friction and command higher prices, but they must balance that with the cost and time such verification requires.
6. Fee and pricing strategies. Eliminating or reducing seller fees (as with Direct Listing) encourages supply but changes economics for the platform. Marketplaces must weigh short-term supply gains against long-term revenue strategy.

Platforms that combine these tactics—timely seller nudges, streamlined logistics, curated category focus and flexible fee structures—stand the best chance of satisfying the holiday surge in resale demand.

Practical advice for sellers: timing, preparation and pricing

For household sellers who want to convert closet items into holiday spending power, the report’s findings translate into concrete steps that increase the odds of sale and fetch better prices.

• List early for seasonal items. Because ThredUp’s supply depends on submissions, sellers should target the window before peak holiday searches. For occasionwear and sweaters, listing in early autumn (September–October) gives marketplaces time to process, authenticate and present items to buyers searching in November and December.
• Prioritize condition and presentation. Clean condition, repaired minor flaws and high-quality photos dramatically increase return rates. Buyers shopping for gifts expect items to be in excellent or like-new condition; sellers who launder, steam and photograph garments clearly will see better results.
• Highlight uniqueness and provenance. If an item is vintage, limited-edition, or has an interesting backstory, include those details in the description. Millennials and Gen Z care about uniqueness; a short note about where a piece came from or why it’s special can justify higher pricing and increased buyer interest.
• Price with intent. Use comparable listings to benchmark prices but leave room for negotiation. Platforms with bidding mechanisms may yield higher prices for rare items, whereas fixed-price listings can appeal to shoppers who want quick gifts.
• Consider peer-to-peer channels for higher returns. Direct Listing and similar peer-to-peer options may deliver higher net proceeds because of reduced seller fees. However, sellers must manage messaging, shipping and returns themselves.
• Bundle or upsell complementary pieces. Sellers moving multiple items can create bundles (e.g., sweater plus scarf) to increase average order value, especially useful when buyers shop for gifts.
• Keep documentation for luxury items. Receipts, authenticity cards and dust bags materially improve buyer confidence and can lift resale prices for premium handbags and designer pieces.

These practical behaviors align household incentives with marketplace needs: early, high-quality submissions expand the supply that platforms can present to gift shoppers.

Practical advice for buyers: how to shop secondhand for the holidays

Buyers can approach secondhand holiday shopping strategically to maximize value and minimize friction.

• Start early and create wish lists. Popular items and sizes evaporate quickly; building a wish list or saved searches on resale platforms helps capture items as they arrive.
• Focus on condition and seller ratings. For gifts, prioritize items described as excellent or like-new and purchase from sellers with high ratings when possible.
• Use filters aggressively. Search by size, condition, brand and price to narrow selections, and set alerts for new listings to respond quickly.
• Be realistic about returns and timelines. Some peer-to-peer sellers and marketplaces have different return windows and policies. Allow time for shipping and authentication, especially for high-value items.
• Consider local pickup for urgent needs. Local resale communities, boutique consignment stores and apps that support local pickup can deliver same-day buys for last-minute gifts.
• Look for meaningful additions. A secondhand handbag paired with a small, new accessory (e.g., scarf or care kit) elevates the gift and creates a polished presentation that feels intentional.
• Check for authenticity documentation on designer items. When buying luxury, request serial numbers, provenance and photos of logos, stitching and date codes if not provided.

These tactics help buyers mitigate typical friction in resale transactions while leveraging the advantages—unique items and price—for the holiday season.

Retail and brand implications: competitive, collaborative and circular opportunities

The growing share of holiday spending flowing to resale has implications for traditional retailers and brands, not merely for resale marketplaces.

1. Competitive pressure on occasionwear and accessory categories. The holiday spike in demand for dresses, sweaters and holiday-specific items means traditional retailers face competition from secondhand platforms. Brands may need to rethink pricing, limited-edition runs and fast replenishment cycles.
2. Market expansion through partnerships. Some brands have embraced resale through buy-back or trade-in programs and certified pre-owned channels. Partnerships between brands and marketplaces can help secure authenticated supply while offering brands a way to recapture value and extend customer relationships. Examples of such brand initiatives predate this report—established luxury players and select contemporary labels have launched certified resale partnerships or in-house recommerce initiatives.
3. Circularity as customer acquisition. Brands that make it easy for customers to resell—through trade-in credits, clean-out programs or authentication services—can turn otherwise idle inventory into a source of future purchases. Consumers who receive store credit for returned or resold items are more likely to spend within the brand, closing a loop that benefits both resale and primary sellers.
4. Marketing and storytelling opportunities. Brands can refract the appeal of uniqueness into limited drops, vintage-inspired releases, and collaborations that leverage secondary-market interest. Marketing copy that addresses longevity, repairability, and resale value resonates with younger buyers who view garments as assets rather than disposables.
5. Reexamining inventory strategy. Retailers accustomed to forecasting for production and distribution must acknowledge that resale introduces an alternative supply channel that can undercut demand for new goods. When resale becomes mainstream for holiday gifting, retailers should consider flexible merchandising plans timed to compete with or complement secondhand offers.

The intersection of resale and traditional retail creates both friction and opportunity. Brands that adapt—either by competing on convenience and novelty or by integrating resale into their offerings—will be better positioned to capture holiday consumer dollars.

Economic and behavioral context: inflation, social calendars and shifting norms

ThredUp’s report explicitly ties some of the resale surge to economic pressures: inflation and higher energy costs have strained household budgets, prompting consumers to reduce discretionary spending or rewear clothes and make space for gifts. Yet the behavioral drivers go deeper than short-term cost-cutting.

Social calendars have expanded the demand for occasionwear. With respondents expecting 2.2 times as many social events during November and December compared with a typical two-month period, consumers need outfits and gifts that fit a compressed event calendar. Buying secondhand for specific events reduces the cost per wear when an item is used briefly and re-enters the resale market quickly.

Normalization of resale as a gifting channel also represents a cultural shift. Where used goods were once stigmatized, a majority of respondents now treat secondhand as equivalent or even preferable to new items. That change is generationally weighted but broadly distributed: 62% say revelation that a gift is secondhand makes no difference, and 22% say they would prefer it. This tolerance accelerates the velocity of goods in the circular economy, fostering both supply and demand.

As households increasingly view their closets as financial resources, the relationship to possessions changes. Items are acquired with resale potential in mind; sellers and buyers anticipate a lifecycle that includes multiple owners. That perspective influences purchasing choices, material preferences and brand loyalty, and it will shape holiday shopping behaviors for years to come.

Risks and limits: authentication, returns and the proof of intent gap

The rise of resale is robust, but not without constraints. The report and market experience suggest several risks that could dampen growth or complicate the customer experience.

• Authentication and counterfeit risk. High-value designer categories require robust verification. When authentication fails, marketplaces risk reputational damage. Platforms that invest in certified graders and verification processes mitigate this risk but incur costs and longer processing times.
• Returns and gifting friction. Not all sellers or platforms provide customer-friendly return windows. Gift buyers need flexible return options or guarantee mechanisms to avoid awkward gift-exchange scenarios. Platforms that offer giftability features—wrapping, extended returns or gift receipts—possess a competitive edge.
• Supply timing mismatch. Platforms cannot manufacture supply; they rely on the willingness of household sellers to part with items. If sellers delay or prioritize other channels, marketplaces may struggle to meet holiday demand for specific categories.
• Price compression in saturated categories. As more sellers list similar items, prices can compress. Sellers expecting high returns must differentiate listings through condition, provenance or seller reputation.
• Sustainability trade-offs. While resale extends product life and can reduce demand for new goods, increased shipping and reverse logistics create environmental impacts that vary by platform. Buyers and platforms alike should monitor net environmental benefits rather than accept resale as inherently beneficial.

These limits point to operational and strategic areas where marketplaces, brands and policymakers should focus attention. Authentication infrastructure, transparent return policies, seller incentives and logistics efficiency are levers that can increase trust and lower friction.

The role of peer-to-peer marketplaces and Direct Listing

ThredUp’s Direct Listing program illustrates the appeal of peer-to-peer mechanics to both sellers and buyers. By eliminating seller fees and allowing sellers to retain full sale proceeds, Direct Listing appeals to households seeking maximum cash back from items they no longer use. The program’s strong earners—handbags from Tory Burch, Coach and Longchamp; apparel from Dôen, Veronica Beard and Ulla Johnson—offer evidence that brand desirability translates into higher returns on peer-to-peer channels.

Peer-to-peer marketplaces have structural advantages that resonate with younger users: social discovery, lower fees and the ability to communicate directly with sellers. For buyers, peer-to-peer channels can surface rare items at competitive prices. For platforms, however, the economics of a no-fee seller model require alternative monetization paths—buyer fees, featured listings or subscription services—to remain viable long-term.

Direct Listing also demonstrates how marketplaces are experimenting with hybrid models to capture supply without entirely sacrificing curated, authenticated offerings. A platform that can combine peer-to-peer scale with optional authentication and logistics services stands to capture a larger share of holiday resale activity.

What this means for the 2026 holiday season and beyond

ThredUp’s data indicate that resale has migrated from occasional use to mainstream behavior—particularly during high-demand holiday months. The short-term outlook for 2026 is bullish: 42% of respondents expect to spend more on holidays than last year, and another 42% expect to spend the same. With consumers anticipating more social engagements and many intending to allocate significant shares of gift budgets to secondhand items, resale platforms should prepare for continued seasonal surges.

However, execution will determine winners. Platforms that can nudge timely seller behavior, authenticate high-value items efficiently, offer seamless seller experiences and create buyer-friendly gift features will capture incremental market share. Brands that engage with resale—through certified pre-owned programs, trade-ins, or partnerships—can retain customer relationships and capture value created by secondary markets.

For households, the holiday season is becoming an exercise in portfolio management. Closets serve as both wardrobe and balance sheet. Sellers who prepare and time their listings stand to convert unused items into meaningful holiday cash. Buyers who embrace secondhand gain access to distinctive items and can often secure better value than new equivalents. The result is a holiday marketplace that is more circular, diverse and competitive than ever.

FAQ

Q: How many U.S. adults plan to shop secondhand this holiday season? A: ThredUp’s 2026 Holiday Resale Report finds 62% of U.S. adults plan to shop secondhand during the holiday period.

Q: What portion of gift budgets will go to secondhand items? A: On average, shoppers who plan to buy secondhand expect to allocate 37% of their gift budgets to previously owned items. Millennials plan to allocate about 45% and Gen Z about 43%.

Q: Are people selling items to fund holiday purchases? A: Yes. Fifty-three percent of respondents said they have sold or expect to sell belongings to help pay for holiday purchases. Millennials and Gen Z are most active, reporting 69% and 66% respectively.

Q: Which categories see the biggest holiday growth on resale platforms? A: ThredUp’s marketplace data show dresses and one-piece garments rose 47% in holiday units, sweaters rose 41%, and activewear increased 16% during the holidays despite a slight decline over the full year.

Q: Does stigma around gifting secondhand still exist? A: The stigma has largely diminished among survey respondents. Sixty-two percent said discovering a beloved gift was secondhand would make no difference, and another 22% said they would like it more.

Q: What can sellers do to improve their chances of selling during the holidays? A: Sellers should list seasonal items early (ideally September–October for winter occasionwear), ensure excellent condition and photographic presentation, highlight uniqueness and provenance, and consider peer-to-peer platforms or programs with favorable fee structures to maximize proceeds.

Q: How do resale platforms manage the timing mismatch between demand and voluntary supply? A: Platforms use incentives such as seasonal submission campaigns (e.g., targeted “seasonal bags”), streamlined clean-out programs, peer-to-peer listing options, and category-focused curation to better align incoming inventory with holiday demand.

Q: What is ThredUp’s Direct Listing and why does it matter? A: Direct Listing is a peer-to-peer resale option that gives sellers control over transactions and eliminates seller fees so they can retain the full sale price. It matters because it lowers seller friction and increases supply for items with strong secondary-market demand.

Q: Are resale purchases a sustainable choice? A: Resale can extend product lifecycles and reduce the demand for new manufacturing, which is often environmentally beneficial. However, net sustainability depends on logistics, shipping, packaging and the full lifecycle of products. Buyers and platforms should consider overall environmental impacts rather than assuming resale is always greener.

Q: How reliable are the survey findings? A: The report combines ThredUp’s marketplace transaction data with a GlobalData survey of 2,123 U.S. adults conducted Sept. 4–18. The survey sample was nationally representative by age, gender, location and income. Marketplace comparisons cover holiday periods (Nov. 1–Dec. 24) in 2023 through 2025.

Q: What should traditional retailers do in response to the resale trend? A: Retailers should consider integrating recommerce strategies (trade-ins, certified pre-owned), timing product releases to compete in categories where resale spikes, partnering with marketplaces for authentication and refreshment of inventory, and designing products with long-term value and resale potential in mind.

Q: Will resale fully replace new purchases for the holidays? A: Resale is growing but is unlikely to fully replace new purchases. Instead, it will capture a meaningful and growing share of holiday spending—especially in categories where uniqueness, affordability and occasion-specific demand matter. The market will remain mixed: new, redesigned and secondhand goods will coexist.

Q: How can buyers ensure authenticity for designer items? A: Buy from platforms or sellers that provide authentication services or detailed provenance. Look for documentation like receipts, authenticity cards, serial numbers and high-quality photographs of logos, stitching and detail. Platforms with in-house authentication reduce risk but may have longer processing times.

Q: When should sellers send in items for the best chance of holiday sale? A: For items expected to sell in the holiday window (Nov.–Dec.), sellers should list or submit items in early autumn—September or October. Early submissions allow marketplaces time for processing, authentication and positioning items in holiday promotions.

Q: What are the likely long-term outcomes of this shift toward secondhand holiday shopping? A: Expect more integrated commerce models where resale and primary retail coexist, brands offering certified pre-owned channels, marketplaces refining timing incentives to secure supply, and consumer expectations evolving toward treating closets as rotating assets. The holiday economy will reflect a higher share of circular transactions, more peer-to-peer activity and greater competition for occasion-driven categories.