Reselling Revolution: Inside the Bay Area’s Thriving Thrift Economy

A collection of finds from a day at the Goodwill bins. 

Photo By: Akina Nelson

Inside a dimly lit Goodwill outlet in San Francisco at 7:58 a.m., Akina Nelson stands outside the Goodwill Bins, ready to dig through piles of secondhand clothes. For the 19-year-old, this is more than a routine—it’s her livelihood. She recently quit her job as a teacher's aide to join a growing wave of young entrepreneurs turning thrifting into a career.

“Networking is definitely the most important. Everyone is just trying to help each other out and make money,” Nelson said. “Thrifting is very sustainable. It’s become super popular, especially since COVID, not only is it cheaper, but you’re not giving all your money to a big corporation. You’re supporting people actively finding these items.”

The Goodwill Bins, officially known as Goodwill Outlet Stores, operate on a fast-paced rotation system where new bins are rolled out every 30 minutes to replace old ones. Shoppers must wait until an entire row of bins is refilled before diving into the latest selection, creating a frenzied "treasure hunt" experience once the rotation begins. This high-energy system, combined with goods sold by the pound, draws bargain hunters and resellers alike, but the competitive environment often adds to the intensity.

The Bay Area, known for its focus on sustainability and innovation, has seen a sudden increase in the growing secondhand shopping movement, driven by Gen Z and millennials embracing thrifting as a lifestyle and an entrepreneurial opportunity.

Goodwill of the San Francisco Bay hit a record $66 million in revenue in 2022, up from $42 million in 2021, exemplifying the growth of the vintage reselling market. Revenue soared to $75 million in 2023, boosted by a merger with Goodwill of the East Bay in October 2022.

Platforms like Depop have fueled this shift, with users growing from 30 million in 2021 to 42 million in 2023. Nearly 90% of Depop’s active users are under 26, highlighting its popularity with Gen Z. 

The platform has seen its user base surge from 30 million in 2021 to 42 million in 2023, with nearly 90% of active users under 26. 

But this boom has brought growing pains. Goodwill discontinued its wholesale program at its San Francisco warehouse this past September, where resellers once purchased items by the pallet. The decision sparked immediate backlash from local entrepreneurs who relied on bulk purchases to stock their inventories.

“I used to rely on bulk purchases to stock my inventory,” wrote Mariel Vazquez, a reseller. “Without warning, they stopped the program, and now it seems like the inventory is going to Arizona instead of supporting local businesses.”

Goodwill San Francisco Bay defended its decision to end bulk sales, saying the move allows for expanded "by the pound" sales at its San Francisco warehouse. The organization said this shift supports free services like skills training, career assistance, and paid job opportunities, aligning with its mission to benefit Bay Area communities.

A petition on Change.org, started by Leo Cardenas, a small business owner from San Jose, highlights the effects of this decision. “This decision has a direct impact on the local economy and is looked at in our eyes as a huge corporate layoff,” Cardenas wrote. “Many people have basically lost their jobs and source of income because of this corporate decision.”

For resellers, the bulk sales program was a lifeline, providing a reliable way to source inventory for resale at local flea markets and online platforms. The petition also raises concerns about safety and fairness in the bins system.

“The popularity of the bins has risen, and the blue bins are not enough,” the petition states. “I’ve seen fights happen and people getting ruthless over the bins. It’s basically a free-for-all with no security and a stressful environment.”

Adding to this, thrift store price increases have made it harder for resellers to turn a profit. “Since thrifting got popular, thrift stores themselves have raised prices,” Nelson said. “If anything, that’s on them, not the resellers.”

Joanna, the manager of the Palo Alto Goodwill, explained, to maximize profits from high-value donations, Goodwill uses a system where standout items are sent to its e-commerce platform. “If we get something good that we know is worth a lot, we send it to e-commerce, and it goes to the highest bidder,” Joanna said. 

Designer items and rare vintage pieces are now routinely pulled for the organization's e-commerce platform, which currently lists over 46,000 men's items and 114,000 women's pieces. Critics argue this shift has cut out local resellers by reducing access to affordable inventory.

Joanna added that each store has a monthly quota of items to send to e-commerce, reflecting the organization’s strategy to compete in the growing online secondhand market. However, she denied that resellers have driven price increases in stores like hers. “We wouldn’t raise prices because of resellers,” Joanna said, emphasizing that the focus remains on making items affordable for the local community.

Not all secondhand stores have embraced the digital shift. In a Victorian storefront in San Jose, the San Jose Auxiliary for Children operates much as it has since 1942, run entirely by volunteers.

"This year, we'll donate over a million dollars in profit to Lucile Packard Children's Hospital," said Gail Jessen, the organization's president. On a recent weekend, Jessen watched as a group of college students combed through vintage sweaters and worn denim. "We have a lot more customers in recent years, of all age groups, but especially young people."

Jo-Ellen Pozner, a business professor at Santa Clara University who studies social movements, notes the accessibility of reselling for young entrepreneurs. “It’s an easy way to enter entrepreneurship for young people who don’t have a lot of capital, don’t have a lot of connections,” she said.

"Goodwill is cutting out the middleman," Nelson said. "I predict that within the next five years, reselling like this will get harder and more expensive." She plans to transition into selling men's workwear with a Pacific Northwest aesthetic and eventually manufacture her own clothing line. 

"Advertising and marketing online will be key to getting there," Nelson said. Her enthusiasm stems from successes like finding a vintage designer jacket for $15 that she later sold for $200. "It's moments like that that keep me excited," she said.

But Pozner cautions that the road ahead may be bumpy. "There are all kinds of changes to the marketplace that might make it harder for folks to do well at this over time," she said, citing potential regulatory challenges such as business licensing, increased competition, and changing consumer preferences.

Whether viewed as a movement or simply a growing industry, the secondhand market continues to reshape how a new generation thinks about fashion, sustainability, and entrepreneurship. As Goodwill and other thrift retailers embrace e-commerce and higher prices, the landscape for resellers becomes more competitive, yet the appeal of thrifting to young generations endures.