The C2C E-Commerce Model and Changing the Thrifting Game

By Ashli Lao, Northeastern University

In an era where 'unboxing' and 'reseller' have become household terms, online resale platforms have surged, boasting a remarkable 23% growth rate in 2023. This trend can be analyzed through the evolution and recent success of e-commerce, the intersection of thrifting culture and the consumer to consumer (C2C) e-commerce model, and the environmental impact of C2C platforms versus traditional modes of secondhand fashion. Revolutionizing numerous industries including the secondhand apparel market, e-commerce leverages the convenience of the internet to propel the popularity of consumer-to-consumer platforms—bringing both positive and negative environmental impacts.

The Evolution and Growth of E-Commerce

E-commerce has experienced exponential growth in the last decade, transforming how consumers shop and reshaping traditional retail industries. Specific technological milestones along with the COVID-19 pandemic and influencer culture have served as key factors in this growth. In 1969, two electrical engineering students launched CompuServe, the first computer time-sharing service in the United States, thereby founding the online service industry. About a decade later in 1982, the first online marketplace, Boston Computer Exchange, emerged. Following, the modern giants Amazon and eBay opened in 1995. These innovations at the intersection of business and technology laid the foundation for e-commerce and the prevalence of online shopping in the twenty-first century.

COVID-19 greatly impacted the success of the e-commerce model with restrictions for in-person activity. Lifestyle adjustments resulting from the pandemic pressured businesses to rely on online sales channels. From this change, consumers found that e-commerce is comparably more efficient and less expensive. COVID-19 proved as a driver for the consumer-to-consumer e-commerce model specifically, as many people cleaned out their living spaces and wardrobes during lockdowns, selling these items on online C2C platforms^. Among secondhand purchases on C2C platforms, fashion and family items were often purchased more than other categories. On eBay, customers enjoy buying “pre-loved” or secondhand goods because it saves money, considers sustainability, and helps them find unique items.

Figure 1. Percent of respondents from the UK, France, and Germany who sold or bought a secondhand item through an online platform in the most recent six months of the survey, across seven categories in 2021.

Within e-commerce, the virtual environment cultivated from the pandemic additionally drove social media usage, leading to the growth of influencer marketing. Through online photo and video content posted by popular social media creators, customers could easily discover and order products. Young consumers recognize social media as their top source of information, especially in reviewing goods and services to purchase. As of November 2024, Tik Tok has 187.5M posts related to thrifting. The People magazine writer, thrift book author, and influencer Virginia Chamlee states that TikTok has shared thrifting with all generations, introducing people to unique items, selling for profit, and buying for affordability. Further, Chamlee notes that younger generations have different motivations for thrifting, including environmental impacts. Particularly transforming fashion and secondhand apparel markets, the e-commerce boom has left a profound mark on various industries with convenience and social media influence.

The Surge of the C2C E-Commerce Model in Thrifting

The rise of consumer-to-consumer e-commerce platforms has not only popularized secondhand apparel but also redefined how consumers perceive thrifting. In 2023, the global secondhand apparel market grew three times faster than the overall global apparel market. Much of this growth may be attributed to e-commerce, as 63% of secondhand apparel consumers made a purchase online in 2023. When homing in on Gen Z and Millennial consumers specifically, the percentage of secondhand apparel consumers who make online purchases increases to 71%.

Figure 2. Growth in gross merchandise value from 2018 to projected value in 2028 for resale and non-resale apparel in the U.S.

Popular global peer-to-peer marketplace Depop allows users to buy, sell, and discover items in a community centered application that focuses on creativity and entrepreneurship for younger audiences. In 2021, about 90% percent of the app’s users were under 26 and used the platform for the product assortment, social features, and sustainability. As a community powered marketplace app, the Depop leadership team claims that users start on Depop for the clothes, “but stay for the culture.” Purchased by Etsy in 2021, Etsy, Inc. CEO Josh Silverman, marked Depop as “the resale home for Gen Z consumers.” This acquisition demonstrates the potential for growth in fashion resale, C2C e-commerce, and sustainability. Depop and other C2C platforms have reduced the stigma around second-hand items, rebranding thrifting as “cool”, while encouraging consumers to embrace their personal style. These apps are also made accessible to a wide audience, meaning that anyone can access user shops, sell items, and communicate with other users. As C2C e-commerce continues to elevate the secondhand apparel market, it empowers a new generation to drive meaningful change.

Environmental Implications of C2C Platforms

While C2C e-commerce offers sustainable benefits, it also presents unique environmental challenges compared to traditional secondhand fashion. Overall, shopping secondhand can promote a circular economy and extend the life cycle of clothing. This proves beneficial to the environment because textile production can cause natural resource overconsumption, pollution, and greenhouse gas emissions, to name a few. In 2020, the textile sector was the third largest source of water degradation and land usage. The overconsumption of these resources is not the only issue. The dyeing and machine-washing processes also pollutes water and releases microplastics that are harmful to the environment, animals, and human health. C2C e-commerce models address these environmental impacts by breathing a second life into clothing items while also spreading awareness of environmental issues to a wider audience.

Many consumers agree that sustainability should be an important factor in purchasing decisions. 94% of Gen Z and 90% of millennial sellers on eBay value the C2C platform for its role in keeping items out of landfills. However, the “trendiness” of thrifting because of social media and C2C platforms can doubly encourage overconsumption. The app Depop currently has about 35 million users, with over 34 million items available for sale, and up to 180,000 new listings daily. With such a great amount of product for sale, these statistics raise the question of whether the thrifting craze is encouraging consumers to buy more sustainably, or just to buy more.

Additionally, the large quantity of orders on C2C e-commerce sites mean large environmental impacts from packaging materials and shipping emissions. Every year, 3 billion trees are pulped to produce shipping cartons, and 86 million tons of plastic packaging are produced globally, the majority of which are not recycled. In transport, shipping and return of products made up 37% of total greenhouse gas emission in 2020. While many users on online C2C platforms reuse packaging, these material and shipping impacts negatively impact the environment in ways that thrift stores with physical storefronts do not. Understanding the environmental nuances of the C2C e-commerce model is crucial for leveraging its potential for positive impact.

Figure 3. Predicted increases in delivery vehicles and carbon dioxide emissions due to online shopping for top 100 cities globally.

Addressing Textile and Fashion Impact at the Source

Surging in popularity, consumer to consumer e-commerce has reshaped the secondhand apparel market while presenting complex environmental trade-offs. Thrifting acts as a sustainable alternative to purchasing new items and contributing to fast fashion, which younger generations actively recognize. While shopping second-hand does not solve the issue of overproduction, cheaply-made goods, and unethical labor, C2C e-commerce platforms have encouraged environmental ideas which can lead to change. To address the issue at the source, consumers should buy less, in better quality, and reuse. More than ever before, younger generations play a critical role in reducing textile waste and fostering a more sustainable fashion industry.

Cover photo courtesy of Alex Peto, Raw Pixel.