The report is based on a survey of 1,100 US consumers about their online resale purchase habits and decision-making in the past 12 months.
According to Seel’s findings, 57.4% of Gen Z respondents reported buying secondhand or resale items online within the past year, higher than the 52.8% of Millennials and 26.2% of Gen X who did so.
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The research points out that as Gen Z’s purchasing power continues to increase, their expectations for easy and reliable return processes are reshaping the resale landscape.
However, the report shows that poor return or refund experiences are having a direct negative effect on brands’ ability to retain customers and convert interest into sales.
Notably, 57.1% of Gen Z respondents said they had stopped shopping with a brand following a negative return or refund experience.
Among Millennials, this figure was 54.1%, and for Gen X it was 42.4%. Furthermore, 61.2% of Gen Z said they decided not to purchase an item specifically because of an unsatisfactory return policy.
The wider market context shows strong growth. The US secondhand apparel sector is predicted to reach $78.8bn by 2030, expanding by 7.3% annually, nearly four times faster than the broader retail apparel market.
Despite this momentum, Seel chief revenue officer Laura Huddle said: “Gen Z is already buying secondhand in record numbers. 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.”
The motivations for secondhand shopping are largely practical across generations, the survey found.
Lower prices were cited by 54.8% of buyers as a primary reason for shopping resale, with 39.9% mentioning better value for premium or branded items, and 38.1% referring to positive previous experiences. Only 27.8% named environmental or sustainability concerns as a key motive.
Among those who have not shopped secondhand, 24% said uncertainty about the reliability of the platform or seller is a barrier, 24.5% prefer new items, and 23.2% are concerned about product quality or condition.
Seel stated that closing this “trust gap” represents a major opportunity for platforms and brands seeking to attract non-buyers.
The post-purchase experience is a crucial factor for Gen Z, with 35% saying customer reviews build confidence, and 86.3% expecting issues to be resolved within two to three days. Only 1.1% find waits longer than a week acceptable.
Fashion and electronics were named as the categories with the highest demand for post-purchase protection, with 76.5% of all respondents saying checkout protection would make them more likely to buy.
According to Seel, companies that resolve post-purchase issues quickly and reliably are more likely to receive positive reviews, attract new shoppers, and earn customer loyalty.
The report notes that strong post-purchase performance is not only important for service but has also become a critical factor for growth in the resale market, where small missteps can lead to lost business.
Last year, Seel’s inaugural 2025 Returns and Refunds Report revealed that late deliveries and missing parcels are becoming a more prominent trigger for returns in the fashion and accessories sector.
