A coalition led by American Circular Textiles has launched a petition on August 26, 2024, supported by resale platforms ThredUp and Vestiaire Collective, to end what they describe as 'double taxation' on secondhand apparel. The petition argues that taxing secondhand items twice discourages sustainable shopping and hinders the growth of the secondhand market. According to ThredUp's annual resale report, U.S. consumers spent nearly half of their clothing budget on secondhand items, reflecting a significant shift in consumer behavior towards sustainability. The global secondhand market has reached a valuation of $197 billion after experiencing an 18% growth last year, highlighting its increasing importance in the fashion industry. Rachel Kibbe, CEO of American Circular Textiles, emphasized that eliminating this tax could spur economic growth and promote the reuse and repair of garments, further supporting the circular economy. [233cc502]
In addition to the petition, major US retailers, including Macy's, Abercrombie, J. Crew, and H&M, have begun implementing fees for returns, which have surged due to the rise of online shopping. Customers returned nearly 17% of total merchandise purchased in 2022, leading retailers to face the financial burden of covering expensive shipping fees for returns. Some stores are allowing customers to keep their returns instead of sending them back to mitigate these costs. Even Amazon has introduced a $1 fee for returns to UPS stores. Despite the challenges posed by returns, retail sales during the holiday season still saw a 3.1% increase compared to the previous year. [da2cfd20]
In an effort to reduce clothing waste and promote a circular economy for fashion, eBay has eliminated fees for selling pre-owned clothing, including brand new items with tags. The online marketplace claims to have saved over 1,600,000 kg of waste from going to landfill through secondhand clothing sales last year. However, seller fees will still apply to trainers, watches, handbags, and jewelry. eBay has also introduced AI-generated item descriptions and plans to pilot an interactive livestream shopping experience called eBay Live in the UK. [d2b5c87c]
The impact and value of donated clothes have been a topic of discussion, with varying perspectives emerging from different communities. An op-ed in The Washington Post challenges the portrayal of the secondhand clothes business in Kenya as harmful and wasteful, arguing that only a small percentage of imported secondhand clothes in Kenya are waste. The author suggests that banning these imports would have negative economic consequences and limit access to affordable clothing. Instead, they propose investing in infrastructure for reusing secondhand clothes. The president and CEO of Goodwill Industries International responds, highlighting the positive impact of donations on local communities and the efforts to advance textile circularity. Another opinion piece argues that dismissing donated clothes as waste is arrogant and ignorant, shifting the focus to fast-fashion giants that contribute to overflowing waste piles. The president of the Secondary Materials and Recycled Textiles Association calls for establishing a robust recycling infrastructure and legislative support for the textile recycling industry. These perspectives offer a nuanced view of the impact and value of donated clothes, emphasizing the need for sustainable practices and infrastructure to maximize their benefits. [eecd9519]