Gen Z is driving secondhand growth, but poor returns are costing brands loyalty

Gen Z is the driving force behind secondhand commerce in the United States, but a growing number of younger shoppers are ready to walk away from a brand entirely after a poor return or refund experience — putting post-purchase trust at the centre of resale's next phase of growth. In fact, 60 percent of Gen Z have stopped buying from a brand following a negative returns experience, according to the new 2026 Gen Z Shopping Report from post-purchase platform Seel. Based on a survey of 1,100 US consumers and their online shopping behaviour over the past 12 months, the report's findings come at a key moment for the resale category. 

The US secondhand apparel market is projected to reach 78.8 billion by 2030, according to data compiled by GlobalData for ThredUp's 2026 Resale Report, growing 7.3 percent annually — almost four times faster than the broader retail clothing market. With Gen Z pushing the bulk of that growth, the competitive battleground for resale is shifting away from inventory and price, and toward trust and loyalty, according to the report from Seel.

Gen Z's lead in the secondhand market is widening, but it isn't loyal by default.

Generational data from the report shows the secondhand gap continues to widen. 57.4 percent of Gen Z respondents bought secondhand or resale online in the past 12 months, compared to 52.8 percent of Millennials and just 26.2 percent of Gen X. That lead does not  translate into immediate loyalty, however. 61.2 percent of Gen Z respondents stated they have decided not to buy something online because of a return policy, and 57.1 percent have stopped shopping with a brand altogether after a poor return or refund experience. While this is less of an issue with older generations, the impact is still significant: 54.1 percent of Millennials and 42.4 percent of Gen X said they had abandoned a brand for the same reason. As Gen Z's purchasing power increases, the cost of a friction-heavy returns experience will only compound. And this tension matters more than brands may think, because the reasons younger shoppers tend to favor secondhand shopping in the first place are more practical than some industry narratives often suggest.

Why some consumers buy secondhand — and why others don't

Across all ages and active secondhand buyers surveyed, the top drivers for shopping for pre-loved goods were lower price (54.8 percent), better value for premium or branded items (39.9 percent), and a positive previous experience with the category (38.1 percent). Sustainability, while remaining a meaningful factor, was of less importance for many, at 27.8 percent. That practical lens carries over to the reasons non-buyers stay away from the category. The top barriers, according to the report, were uncertainty about seller or platform reliability (24 percent), a preference for new items (24.5 percent), and concerns about product quality or condition (23.2 percent). To put it more clearly and plainly, the gap between secondhand buyers and non-buyers is largely linked to a trust gap. And for the resale platforms that manage to close that gap, the payoff is rather large. 

Post-purchase is becoming a top-of-funnel growth driver

That same trust dynamic plays out after the sale. For 35 percent of Gen Z surveyed, customer reviews were found to be among the most important factors in building confidence in a secondhand purchase, and reviews are shaped almost entirely by post-purchase experience. Expectations on speed when it comes to communication and delivery are high: 86.3 percent of Gen Z respondents expect an issue to be resolved within two to three days, and just 1.1 percent are willing to wait longer than a week. Demand for checkout protection is also strong, with 76.5 percent of all respondents saying it makes them more likely to buy. Unsurprisingly, fashion and consumer electronics are the two categories where that demand is most concentrated.

"Gen Z is already buying secondhand in record numbers," said Laura Huddle, Chief Revenue Officer at Seel, in a statement. "But the category's next phase of growth will be won by platforms and retailers that invest in trust. The brands that win customer loyalty long-term aren't going to be the ones with just the best product selection — they're going to be the ones that make it easy to come back if a return or exchange needs to be processed."