ThredUp is dropping fees associated with branded resale and rolling out an array of improved services for its partners.
This strategic shift addresses the prevalent market conditions where resale often encompasses unsold new inventory and returned items.
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ThredUp envisions creating a robust and cost-effective “universal recommerce layer” that will serve the resale ecosystem in a manner like Amazon Web Services’ impact on cloud computing or Shopify’s influence on e-commerce for small enterprises. This will enable brands to manage all aspects of their resale activities efficiently.
ThredUp CEO James Reinhart said: “We believe the future of retail is circular, but for branded resale to truly scale, it needs to be accessible and cost-effective.
“We’ve seen that current resale solutions often fall short, burdening brands with complex operations and limited impact. ThredUp’s new approach is designed to change that. By offering our technology and operational expertise for free, we’re empowering brands to build authentic circularity into their core business models.”
With the updated RaaS platform, participating brands will receive a portion of the sales from ThredUp’s current inventory sold through their dedicated resale shop. Additionally, they will keep all revenue from the sale of their own secondhand items.
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By GlobalDataThe RaaS will offer complimentary brand-specific resale shops that are integrated with the platform’s Clean Out Program at a reduced rate.
The Clean Out Program is designed to streamline the process of sorting and selling pre-owned clothing.
The updated offering for brands also includes options for cleaning and repairing garments in a cost-effective manner, attract new customers by reducing cash out fees, marketing support, identifying sustainable solutions for garment lifecycle, menswear listings, streamlined operations for overstock and returns, enhanced AI search and discovery tools integration.
By the end of the year, ThredUp plans to roll out improved integration capabilities specifically designed to handle returns more efficiently.
The platform is also set to introduce its own peer-to-peer resale marketplace by year-end, which will be incorporated into branded resale shops.
The company reports having handled more than 172m unique pre-owned items, encompassing a wide range of 55,000 brands across 100 different categories.
In December last year, ThredUp exited the European market after selling Remix, the resale platform it acquired in 2021.
