Depop and Etsy Advocate for Smarter Secondhand Market Regulations in New Whitepaper

Depop and Etsy Are Pushing Back Against Outdated Secondhand Market Rules

The resale economy is no longer a niche corner of retail. It has evolved into a multi-billion-dollar industry powered by millions of everyday buyers and sellers who trade pre-loved goods across digital platforms. Now, two of the most recognizable names in that space — Depop and Etsy — are using their combined influence to call for regulatory frameworks that actually reflect the market as it exists today. Their new joint whitepaper makes the case that current rules governing secondhand commerce are out of step with both modern consumer behavior and the environmental ambitions many governments claim to support.

What the Whitepaper Actually Says

The whitepaper, released jointly by Depop and Etsy, centers on a single overarching argument: that policymakers need to treat casual and small-scale secondhand sellers differently from large commercial retailers. Under many existing regulations, a person selling a few dozen items a year from their own wardrobe can face the same compliance burdens as a professional business. That creates friction, discourages participation, and ultimately undermines the circular economy goals that governments in the EU, UK, and elsewhere have publicly committed to achieving.

The document highlights how circular behaviors are becoming more embedded in consumers' daily routines. Reselling, repairing, renting, and gifting are no longer fringe activities — they are habits that a growing proportion of the population engages in regularly. Regulatory systems, the companies argue, should be designed to support rather than suppress these habits.

The Rise of the Circular Consumer

To understand why this whitepaper matters, it helps to look at how dramatically the secondhand market has grown. Global resale is projected to reach over $350 billion by 2028, according to industry research, with platforms like Depop, Etsy, Vinted, eBay, and ThredUp all competing for a share of that growth. But behind the headline numbers is a more meaningful shift in how people think about ownership, consumption, and waste.

For younger generations especially, buying secondhand is not a compromise — it is a preference. The thrill of finding something unique, the satisfaction of reducing environmental impact, and the financial advantage of lower price points have all converged to make resale a mainstream shopping channel. Surveys consistently show that Gen Z and Millennial shoppers view secondhand purchasing as both economically smart and ethically aligned with their values.

This behavioral shift is exactly what Depop and Etsy are pointing to when they argue that regulation needs to evolve. The people driving the secondhand economy are not professional merchants operating warehouses and logistics networks. They are individuals decluttering their homes, small creative businesses selling handmade or vintage goods, and communities of enthusiasts trading within niche markets. Treating them like commercial enterprises, the whitepaper suggests, is both inaccurate and counterproductive.

The Regulatory Mismatch Problem

One of the most concrete concerns raised in the whitepaper involves tax and reporting thresholds that have not been calibrated for peer-to-peer selling. In several jurisdictions, platforms are now required to report seller income to tax authorities when it crosses relatively low thresholds. While tax compliance is a legitimate goal, critics argue that these thresholds can capture people who are simply recouping personal expenses by selling their own possessions — not running businesses generating profit.

Beyond taxation, the whitepaper also addresses product safety rules that were designed with new goods in mind. Applying the same safety certification standards to a vintage lamp being sold by an individual as to a mass-produced appliance sold by a manufacturer creates an unworkable situation. The compliance costs alone could deter casual sellers from participating in the market at all.

Depop and Etsy are not arguing for a free-for-all with no oversight. Rather, they are calling for proportionality — rules that scale appropriately to the size and nature of the seller, while still protecting consumers and ensuring fair competition.

Why This Matters for the Broader Sustainability Agenda

There is a wider environmental argument at stake here that extends well beyond the interests of two platform companies. Extending the life of garments and goods through resale is one of the most effective ways to reduce the environmental footprint of consumption. A piece of clothing that is sold and worn again rather than sent to landfill represents real, measurable carbon savings. When regulatory barriers make that transaction harder, the environmental cost is tangible.

Governments across Europe and North America have introduced or are developing extended producer responsibility legislation, textile waste targets, and circular economy action plans. For those initiatives to succeed, they need the informal resale economy to thrive, not be burdened by rules that were never designed with it in mind. Depop and Etsy are essentially asking regulators to connect the dots between their sustainability commitments and the policies that govern everyday commerce.

What Smarter Regulation Could Look Like

The whitepaper does not stop at identifying problems. It also outlines what more thoughtful regulation might include:

• Tiered seller classifications that distinguish between casual individual sellers, micro-businesses, and commercial retailers, with compliance obligations scaled accordingly.
• Revised income reporting thresholds that account for the fact that selling personal possessions is not the same as generating business revenue.
• Product safety frameworks adapted for secondhand goods, acknowledging the inherent differences between used and new items without eliminating meaningful consumer protections.
• Policy coordination between sustainability agencies and trade regulators, so that circular economy goals are reflected in the rules governing secondhand platforms.

A Turning Point for Platform Advocacy

What makes this whitepaper significant is not just its content but its form. Two major platforms — each with enormous reach and data on secondhand buying behavior — are choosing to engage directly with the policy conversation rather than simply responding to regulation after it passes. That kind of proactive advocacy, backed by real market evidence and a clear policy framework, is increasingly how the most influential players in the digital economy shape the rules that govern them.

For consumers, sellers, and sustainability advocates, the argument Depop and Etsy are making is a welcome one. The secondhand market is one of the most promising tools available for shifting consumption patterns toward something more sustainable. Giving it the regulatory conditions it needs to grow — rather than the compliance burdens designed for a different era — is a straightforward way for governments to act on their own stated values. Whether policymakers will listen is the next question worth watching.