According to study, 67% of millennials living in the UK shop for used clothes, and an even larger number buy other non-fashion items as second hand. In the latest version of ThredUP’s annual resale reports about the second hand industry, it highlighted that by 2027, the value of the used clothing market will have grown to an all time high of $3.5 billion. In this study commissioned by ThredUP, 2 out of 5 items in a Genz’s closet are pre-owned.
You might be wondering, what are the implications of the above information? Well, for one, it means that the global market for second hand clothes is booming, at a steady climb, and the demand for it is constant.
In the rest of this article, we look at the various classes of who buys used clothes in bulk, why you should buy second hand clothes wholesale, and how to buy them.
Second Hand Retail Stores
Retail stores that sell second hand clothes are one of the biggest brokers of the used clothing industry; the majority of used clothing bales end up here. The reason for this is that second hand retail stores are the closest units to the consumers who will buy second hand clothes.
Below are types of second hand retail stores that buy used clothing in bulk-
1. Thrift Stores
Thrift stores are retail outlets where shoppers walk in to buy used clothes, usually at very cheap prices. These stores have a wide variety of items, making them more interesting, because you don’t know what you will find or when you will find it.
Typically, big corporation thrift stores like Goodwill and Salvation Army Stores are not much of a buyer of used clothing bales, due to the fact that they receive donations of second hand clothes. Thrift stores who buy used clothing are the independent and for-profit thrift stores.
2. Vintage Boutiques
Vintage boutiques are one of several fashion outlets and shops who buy second hand clothes in bulk. They specialize primarily in the sales of used and retro clothing items like jackets, belts, boots, scarfs, shirts, old sports jerseys, etc. Vintage boutiques can be found in malls, markets, and neighborhood shopping plazas.
Online Resellers
Once upon a time, the only reputable places you could go to find used clothes online was eBay and Craigslist. Today, however, there are several e-commerce platforms and independent online retailers that have established themselves as big players in the used clothing reselling niche.
This category of used clothing brokers cater for a much larger market. Seeing that they operate online, and for this reason, account for some of the biggest purchases of used clothing in bulk. From the bigger reselling companies who buy in tons of bales, to the social media sellers that buy in dozens, online resellers are major players in the used clothing industry.
1. E-commerce Platforms
A study carried out by ThredUP and GlobalData showed that about $178 billion was spent by shoppers on reused items in 2021. That is, almost a quarter of a trillion spent by people on e-commerce platforms.
Having recognized the fact that people will happily splurge on clothes that are affordable and at the same time unique, dozens of big brands have sprung up to key into the business. These companies buy used clothes in bulk, or accommodate sellers who buy in bulk, then resell on their platform in units and dozens.
Examples of these e-commerce platforms include TheRealReal, Mercari, Depop, Poshmark, Grailed, etc.
2. Social Media Sellers
Social media sellers, like e-commerce platforms, are one of the categories of people who buy used clothes in bulk. The difference however, is that they are mostly independent, and target a wider audience using social media.
Social media sellers have the freedom to decide their own prices, they keep 100% of profits, and get to manage their inventory however they deem fit.
Exporters and Importers
Goods that make up the second-hand clothing market, typically, either come directly from the original users, or through third-party facilitators- otherwise known as exporters and importers. This class of buyers will purchase high-quality second-hand clothes in bales, and used shoes in bulk, then send transport to different parts of the world where they are in demand.
Recycling Companies
Every year in North America, more than 11 billion kilograms of unwanted textiles end up in landfills, and it takes a very long time before they start to decompose. In a bid to reduce the number of clothes that get sent to landfills, a number of recycling companies have taken it upon themselves to buy as much used clothing as they possibly can. These clothes are recycled to make other products that require textile materials.
In the Sustainability Report of H&M for 2018, the company states that one of their long-term goals is to have achieved using 100% recycled or other sustainably sourced materials for production by 2030.
Selling second-hand clothes to recycling companies helps to eradicate premature disposal, and also to reduce the environmental impacts of new fashion production.
Why Buy Used Clothes In Bulk?
The growth of the second hand clothing industry globally can be generally attributed to the several benefits of buying used clothes. Below are some reasons why you ought to consider buying used clothes in bulk-
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Lower Purchasing Costs
One of the many reasons why used clothes have become increasingly popular is due to their affordability. They are usually of higher quality and cheaper than a lot of new fast-fashion items produced in recent years. If buying one piece of second-hand clothes is cheap, now imagine the incredible bargain you can get when you buy used clothes in bulk.
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Higher Profit Margins
Still, wondering why you should buy used clothes in bulk? Then you should know that as a result of the lower purchasing costs that come with buying used clothes in bulk, you get the advantage of selling and getting a higher profit margin. The reason for this is that you get your quality second hand clothes bales at a competitive price, giving you the benefit of price flexibility.
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Sustainable Business Practices
Another reason why you should buy used clothes in bulk is that it helps to integrate sustainable practices into your business agenda, which is highly commendable. Not only will you be making good profit, but also contributing your quota in reducing textile wastes that endanger natural habitats.
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High Demand for Unique Items
Reused fashion is very popular particularly because it satisfies the high demands of consumers for unique items. When looking for a rare fashion item, especially one that’s no longer in production, you stand a higher chance of finding it in a used clothing bale than in a fast fashion boutique.
How To Buy Second-Hand Clothes In Bulk?
A vast array of knowledge, expertise, and skills is needed when buying second-hand clothes in bulk, most importantly if you intend to become an industry leader and not just a regular reseller. Below are some know-hows you will need to conquer the market:
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Sourcing Used Clothes
When buying second hand clothes in bulk, it is crucial to source for clothes that appeal to your target audience’s taste. Better still, purchase your merchandise from a supplier that stocks the best second hand clothes from a wide variety in bales.
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Evaluating Quality and Condition
While customers do not expect brand new clothes when they shop for second hand clothes, they very well expect the best value for their money, and clothes that are sellable. Hence, your wares must be in sparkling conditions. There is no better way of ensuring this than to get your supplies from a wholesaler that prioritizes quality control of used clothes.
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Negotiating Prices
The negotiation stage is very important, keep in mind that this is the part that will determine the margin of your profits, and how fast you get your ROI. Since you are buying in bulk, you have a leverage to negotiate prices more flexibly than someone buying in single units.
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Logistics and Shipping
When you want to buy second hand clothes in bulk, consider the ease and cost of shipping it. It is preferable to buy from a supplier that has a history of delivering to your location. Some suppliers work with shipping companies, while others let you handle the logistics yourself. An example of a reputable supplier that has an extensive network and proven record of shipping second hand clothes worldwide is Zagumi.
Conclusion
Over the past couple of years, the sales and purchase of used clothes has not only become increasingly normalized, but also encouraged. To an extent, we have even witnessed a glamorization of second hand fashion in pop culture. Therefore, we can conclude that there will always be people who buy second hand clothes, if there is someone who sells it.
