Luxury Resale Market Tops $59 Billion Driven by Side Hustles

The value of the luxury resale space reportedly grew to $59 billion last year.

That’s according to a report Tuesday (Feb. 24) by The Wall Street Journal (WSJ), which says the market for secondhand luxury goods is now growing faster than the primary market.

The report describes an “uneasy truce” luxury companies have formed with resale platforms like The RealReal and Fashionphile, with brands such as Chanel going to court to control what resellers can and cannot do.

“Luxury brands have been understandably reluctant to get involved with the messy business of selling secondhand goods,” writes WSJ columnist Carol Ryan.

“The problem is, resale is proving such a hit with consumers that they risk losing market share by staying on the sidelines.”

The report cites data from Boston Consulting Group showing the share of secondhand goods in shoppers’ wardrobes has climbed 7 percentage points to 28% since 2020, with traditional retail and newer business models like rental and subscription services losing share.

This shift has been especially pronounced in the handbag space. Bags are one of the most lucrative products for luxury brands, the WSJ notes, and younger consumers are now turning to resellers for almost half their handbag purchases.

Young consumers aren’t just buying used clothing, they’re also sellers in this space as a way to pick up some extra income, research from PYMNTS Intelligence has shown.

“Selling used goods is an especially popular and accessible way to earn extra cash,” PYMNTS wrote in 2024.

“Thirty-one percent of all consumers surveyed told us they have sold at least one used item in the last 12 months, and more than four in 10 bought a used item during the same period.”

In terms of what people are reselling, clothing — including shoes and accessories — was the most popular, at 58%.

The research found that Gen Z was the most likely to be involved in both selling and buying used goods, with 47% of that age group saying they have sold secondhand goods, while nearly three-quarters have bought used items.

When subtracting age from the equation and looking only at paycheck-to-paycheck consumers who struggle to pay bills, those shares fell to 37% selling and 49% purchasing such items.

This income source extends to the world of sneaker-buying, as covered here last year in a report on post-graduate side hustles.

“People are paid to wait in line for highly anticipated sneaker releases to purchase shoes that can then be resold for a profit,” that report said. “This is a legitimate, albeit niche, way to earn money, and the demand exists due to the profitability of the resale market.”