Gen Z is the driving force behind the secondhand trade in the United States. However, a growing number of younger consumers are willing to turn away from a brand completely after a bad return or refund experience. This puts post-purchase trust at the center of the next phase of resale growth.
60 percent of Gen Z have stopped buying from a brand after a negative returns experience. This emerges from the new ‘2026 Gen Z Shopping Report’ from post-purchase platform Seel. The report’s findings are based on a survey of 1,100 U.S. consumers and their online purchasing behavior over the past twelve months. They come at a crucial time for the resale industry.
The US second-hand clothing market is expected to reach $78.8 billion (€67.6 billion) by 2030. This is according to data compiled by GlobalData for ThredUp’s ‘2026 Resale Report’. The market is growing by 7.3 percent annually, almost four times faster than the entire clothing retail sector. With Gen Z driving most of this growth, competition in resale is shifting. He is moving away from inventory and price towards trust and loyalty.
Loyalty is not a given
The generational data from the report shows that the gap in the secondhand sector continues to grow. 57.4 percent of Gen Z respondents purchased second-hand or resale items online in the last twelve months. In comparison, it was 52.8 percent of Millennials and just 26.2 percent of Gen X. However, this advantage does not automatically translate into immediate loyalty.
61.2 percent of Gen Z respondents said they had forgone an online purchase due to a return policy. 57.1 percent have stopped shopping with a brand completely after a bad experience with a return or refund. Although this is less of a problem in older generations, the impact is still significant. 54.1 percent of Millennials and 42.4 percent of Gen X said they had turned their back on a brand for the same reason.
As Gen Z’s purchasing power increases, the costs of cumbersome returns processing will continue to rise. This tension is more important than brands may think. The reasons why younger shoppers prefer secondhand fashion are more practical than some industry narratives often suggest.
Reasons for buying second hand
Across all age groups and active second-hand shoppers, the main reasons for purchasing used goods were a lower price (54.8 percent); a better price-performance ratio for premium or branded items (39.9 percent); and a positive previous experience in this category (38.1 percent). Sustainability was still an important factor, but for many it was less important at 27.8 percent.
This practical perspective also carries over to the reasons why non-buyers avoid the category. According to the report, the biggest hurdles were uncertainty about the reliability of the sellers or the platform (24 percent); the preference for new items (24.5 percent); and concerns about product quality or condition (23.2 percent). Simply put, the gap between secondhand shoppers and non-shoppers is mostly related to a trust gap. And for the resale platforms that manage to close this gap, the success is significant.
Post-purchase becomes a growth driver
The same trust dynamic plays out after the sale too. For 35 percent of Gen Z respondents, customer reviews are one of the most important factors in building trust in a second-hand purchase. These reviews are almost entirely driven by the post-purchase experience.
Expectations for speed of communication and delivery are high. 86.3 percent of Gen Z respondents expect an issue to be resolved within two to three days. Only 1.1 percent are willing to wait longer than a week. The demand for buyer protection during checkout is also high. 76.5 percent of all respondents stated that this made them more willing to buy. Not surprisingly, fashion and consumer electronics are the two categories where this demand is strongest.
“Gen Z is already buying secondhand items in record numbers,” Laura Huddle, chief revenue officer at Seel, said in a statement. “But the category’s next phase of growth will be won by platforms and retailers who invest in trust. The brands that win long-term customer loyalty won’t just be the ones with the best product selection. They will be the ones that make returns or exchanges easy.”
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