New York, June 2026 – As Americans grapple with rising costs and economic uncertainty, new research from Depop and Etsy reveals that the circular economy is becoming an increasingly important way many people manage expenses, earn income and stay connected with others in their daily lives.
The new whitepaper, “Building Policy Pathways for a Circular Economy,” finds that 90% of Americans favor circular economy solutions after learning more, pointing to growing interest in practical, everyday approaches to affordability and community connection. At the same time, the report identifies areas where current policy frameworks do not fully reflect how secondhand markets operate today, potentially limiting broader participation and growth.
Research Depop commissioned with Censuswide also highlights the scale of this opportunity: 77% of Americans own clothes they no longer want or need, with closets holding approximately $400 in potential resale value. Nationally, this represents billions of dollars in untapped economic opportunity that many households are beginning to unlock
The research highlights how circular behaviors such as shopping secondhand, reselling items, and extending the life of goods, are becoming more embedded in everyday routines. For many, these practices are not driven by a single motivation, but by a combination of financial, social, and environmental considerations.
92% of Americans who participate in circular practices say it has helped them save money
80% say it has helped them earn extra income or cover expenses
86% say it has helped them feel more connected to their community
Together, these findings suggest that circular practices are not a niche behavior, but a growing part of how Americans navigate everyday economic pressures.
“At Depop, we see firsthand how resale has become part of everyday life, from people clearing out their closets, to building businesses and connecting with other people,” said Peter Semple, Depop’s CEO. “What this research highlights is just how widespread these behaviors have become. People are already finding practical ways to get more value from what they own, while building income streams and communities around it. There’s a continuing opportunity to make buying and selling secondhand even easier and more accessible, so it becomes a default behaviour for even more people."
As participation in secondhand continues to grow, the report also highlights key policy areas where current rules risk holding that momentum back:
Sales tax: In some states, a used item that was already subject to sales tax when first purchased may attract sales tax again when resold through a formal marketplace, which can reduce the cost advantage of secondhand goods for budget-conscious buyers.
Proportionate reporting: While 36% of Americans sold personal items or handmade goods for extra money last year, only 13% identify as a business. Current 1099-K thresholds can create administrative complexity for some casual sellers, potentially discouraging participation or growth.
Infrastructure and shipping: Rising logistics costs and a lack of local circular infrastructure (repair/sorting hubs) can make it harder for secondhand markets to scale efficiently.
"Etsy was built on the belief that small businesses and independent sellers deserve the tools and conditions to thrive,” says Jeffrey Zubricki, Etsy Global Head of Advocacy and Public Policy. “The circular economy is already delivering real economic opportunity for millions of Americans — helping households stretch their budgets, generate income, and build community. But too many microbusinesses face reporting requirements and cost structures that weren't designed with them in mind. Policymakers have an opportunity to modernize these frameworks so that the rules of the road reflect how Americans are actually buying and selling today."
The whitepaper outlines a set of areas for further exploration by state and federal policymakers to help unlock the potential of secondhand markets:
Sales tax relief for resale items: Considering options such as sales tax holidays or refund models that include secondhand goods, particularly for cost sensitive households
Proportionate shipping for secondhand goods: Exploring ways to mitigate disproportionate postage costs for small scale resale.
1099-K reporting relief for used goods: Ensuring tax reporting thresholds are proportionate to the scale and nature of activity, distinguishing between casual sellers and large commercial operators.
EPR design that exempts resale items and protects sellers: Designing Extended Producer Responsibility (EPR) frameworks that recognize the role of secondhand markets and maintain proportionate requirements for small sellers.
Funds for resale-focused small-business grants: Expanding access to grant programs and funding streams that help secondhand entrepreneurs invest in tools, storage, technology, training, and other resources needed to start and grow.
"The recommerce and slow fashion economy is already shaping how Americans shop, save money, and make more sustainable choices. That’s why I launched the Recommerce Caucus and am a proud founding member of the Slow Fashion Caucus," said Rep. Kamlager-Dove. “Clothing today is made with synthetic materials and designed to wear out quickly, yet is sold at prices that don’t match the quality. The recommerce economy offers people access to better-made, longer-lasting goods while reducing waste and sending a clear market signal. This is good for the economy, small businesses, and the environment. I look forward to continued partnership with Etsy, Depop, and other recommerce platforms to bring these issues into the policy conversation and push for solutions that reflect what people are already demanding.”
"The circular economy is creating new opportunities for Americans to save money, earn additional income and support small businesses. As Co-Chair of the Congressional Recommerce Caucus, I'm proud to support commonsense policies that reduce unnecessary barriers for entrepreneurs and consumers who help drive the growing resale and secondhand economy," said Congresswoman Malliotakis. "Recommerce provides affordable options, encourages consumer choice, and supports economic opportunity.”
ENDS
Notes to Editors
Penta Research methodology
Etsy and Depop partnered with Penta Group to conduct primary research among U.S. consumers, Depop sellers, and policy influencers and experts.
U.S. registered voters: An online quantitative survey was conducted among 500 U.S. citizens registered to vote, representing a mix of ages, genders, geographic regions, and racial and ethnic backgrounds. Fieldwork was conducted from November 13–29, 2025 (n=500).
Depop sellers: An online quantitative survey was conducted among 113 high-volume U.S.-based Depop sellers from Depop’s seller community. Fieldwork was conducted from November 6–13, 2025 (n=113).
Policy influencers and experts: Six in-depth interviews were conducted with representatives from organizations that help shape sustainability, circular economy, and consumer standards across retail and related industries. Interviews were conducted from November 20–December 4, 2025 (n=6).
Censuswide
Research conducted by Censuswide, surveying 3002 US respondents (gen pop) with min. 250 respondents in each of the following: New York, Chicago, Miami, LA, Dallas, San Francisco and Austin (16+)
About Etsy
Etsy, Inc. operates two-sided online marketplaces that connect millions of creative entrepreneurs with buyers around the world. These marketplaces share a mission to "Keep Commerce Human," and we're committed to using the power of business and technology to strengthen communities and empower people. Our primary marketplace, Etsy.com, is the global destination for unique and creative goods. Buyers come to Etsy to be inspired and delighted by items that are crafted and curated by creative entrepreneurs. For sellers, we offer a range of tools and services that address key business needs.
Etsy, Inc. also owns fashion resale marketplace Depop. Our marketplaces operate independently, while benefiting from shared expertise in product, marketing, technology, and customer support. On February 15, 2026, Etsy entered an agreement to sell Depop to eBay, subject to regulatory approval and certain other closing conditions as set forth in the Sale and Purchase Agreement.
Etsy was founded in 2005 and is headquartered in Brooklyn, New York.
About Depop
Depop is the community-powered circular fashion marketplace where people can buy, sell and discover desirable, affordable secondhand fashion. Together with its community of approximately 56 million registered users, Depop is on a mission to make fashion circular - encouraging more people to choose secondhand and extend the lives of their clothes, redefining fashion consumption. Founded in 2011, Depop is headquartered in London, with an office in New York, and has a team of approximately 500 employees. In 2021, Depop became a wholly-owned subsidiary of Etsy - the global marketplace for unique and creative goods - and continues to operate as a standalone company.
For more information, visit www.depop.com.