China's second-hand luxury sellers tap global price gaps

by FAN Yicheng

Chinese traders of pre-owned luxury goods are expanding overseas, driven by widening price gaps and stronger demand in mature markets, as China is building one of the world’s largest resale supply bases.

A widening gap between domestic and overseas prices is making cross-border resale increasingly profitable, leaving room for profit even after tariffs and logistics costs.

"A Louis Vuitton Speedy 25, for example, can be sourced in China for 6,000 to 8,000 yuan depending on condition and sold in the US for around $1,500, versus $1,700 to $1,800 locally," said LIANG Guanrong, co-founder of Senza Group.

The trend is also drawing in global platforms. eBay began inviting leading Chinese sellers onto its marketplace in mid-2025 as it expands its resale business.

"The circular economy has become a strategic focus for eBay, with second-hand luxury goods a key category," said PANG Tao, head of sales and category management at eBay Greater China. Since 2024, pre-owned and refurbished products have accounted for more than 40% of GMV.

Senza's overseas sales rose more than 50% last year and are expected to grow about 30% this year. After joining eBay in May, monthly sales topped $1 million within three months, with the platform contributing 20% to 30% of overseas revenue.

Founded in 2022, Senza focuses on authentication, recycling and resale, and has expanded to the United States, United Kingdom, Italy and Japan since 2024.

China has built the world's largest supply of pre-owned luxury goods, but domestic demand lags mature markets. Second-hand transactions reached 1.23 trillion yuan in 2023, with luxury goods accounting for more than 25%, according to the China Resale Goods Trading Association.

A Bain & Company report said the market grew 15% to 20% in 2025, but penetration remains below 10%, compared with 20% to 30% in the US and Japan.

"This supply-demand shift is pushing Chinese second-hand luxury goods into global markets," said JIANG Min, founder and chief executive of a Hangzhou-based second-hand luxury retailer, Shengtang, noting China is shifting from a net importer to an exporter in the resale market.

Barriers remain. Cross-border resale is still constrained by both trust issues and regulatory complexity.

CHEN Wei, founder of Twelve Scale (Shanghai) International Trade Co., Ltd., said the sector faces challenges including tariffs, customs compliance, foreign exchange settlement and intellectual property protection.

He cited a case in which a Hermès bag exported to the US was misclassified by customs, triggering an additional $3,000 tariff. After more than 150 days of appeals backed by documentation and authentication certificates, the tariff was refunded, underscoring the importance of proper documentation and compliance.

Policy changes are beginning to ease these constraints. In May last year, rare trading cards worth 20 million yuan were exported via a bonded e-commerce (1210) model from Shanghai's Caohejing Hi-Tech Park, marking the first large-scale compliant export of second-hand goods under this framework.

The model speeds up delivery and reduces friction by allowing goods to be stored in bonded warehouses and shipped once overseas orders are placed, while enabling tax-free returns for unsold items.

Trust is another hurdle, with some overseas consumers skeptical about authenticity.

Platform-backed authentication systems are helping. On eBay, sellers ship items to authentication centers before delivery; verified goods are tagged and certified, improving buyer confidence.

Jiang said her company gained traction after opening an eBay store, supported by the platform’s authentication system and livestreaming.

"Livestreaming — a format pioneered in China — has become a key driver," she said, adding it allows real-time display and interaction, reducing information gaps.

Pang expects rapid growth, citing China's large luxury consumer base and relatively low resale penetration, and said platforms are stepping up recruitment efforts in China.

Jiang said price gaps between China and overseas markets are likely to persist, offering a window for Chinese sellers as clearer regulation supports longer-term expansion.