It appears the online consignment and thrift store is trialing a peer-to-peer resale marketplace, a notable departure from its traditional Resale-as-a-Service (RaaS) model and perhaps an attempt at dethroning the likes of Depop.
A spokesperson for the Reformation partner told Sourcing Journal that ThredUp is not actively participating in interviews surrounding the subject at the moment, but did highlight that ThredUp “revolutionized” the selling experience for thrifters when it “pioneered” the cleanout kit more than a decade ago.
“As innovators in the resale industry, we are always exploring new ways to offer the most convenient and rewarding selling experience for everyone,” the spokesperson said.
This marketplace may be currently off the record, but it is currently accepting applicants.
On ThredUp’s homepage, under the “Sell” tab, an option in mustard yellow says “New! Direct Listing.” While noted as still being in beta, the option seems to offer users the ability to list items themselves and keep all of the earnings.
Here’s how it works: take photos of your item and add relevant details—namely its brand, size, quality, price. The item remains listed until it either sells or the user “unlists” it. If it does sell, the seller ships it out with a pre-paid shipping label sent via email.
“There are no selling fees,” the website reads, “so what you earn is yours to keep for all the items listed yourself.”
The option is now accepting waitlist applicants.
As it currently stands, ThredUp takes a cut from each item sold, based on its final selling price. Its algorithms set item prices based on past sales, brand and item quality. The $14.99 service fee and any other fees applied to that seller’s clean out bag are automatically deducted from any earnings.
“Once an item sells and the return window has passed, you get automatic ThredUp credit. You can convert any amount into cash or credit for other brands. If you decide to use your earnings to shop the site, the credits will be deducted on a first in, first out basis,” the company’s FAQ reads. “A handful of brands with very low resale value are ineligible for earnings, but we still list them to try and give them a second life. If an item from an ineligible brand sells for $20 or more, you’ll still receive the earnings.”
It’s worth noting that ThredUp’s “Consignment 101” webpage currently redirects to a 404-error page.
As a quick refresher, ThredUp provides RaaS to power the pre-loved inventories of brands including Madewell and Adidas. Simply put, this business model allows companies (like Madewell) to partner with third-party providers (like ThredUp) to create resale experiences for their customers. ThredUp is the OG RaaS champion, even owning the registered trademark of “Resale-as-a-Service.”
The key difference is that in managed experiences, the RaaS business is doing the legwork—housing the inventory, fulfilling sales, providing technical support. In a peer-to-peer experience, the RaaS business creates the branded experience, maintains the secondhand storefront and manages customer service, web browser extension for secondhand shopping Beni explained in a blog post. There’s no inventory to be managed in peer-to-peer, as the customer is responsible for shipping the product.
“As a managed marketplace, ThredUp buyers and sellers trust ThredUp to deliver value, selection, and quality. ThredUp provides end-to-end resale services for sellers, including pricing, merchandising, fulfillment payments, and customer service,” the platform said. “This convenience enables a generation of new sellers to easily participate in resale, unlocking a massive supply of high-quality clothing for a new generation of buyers. In 2018, we extended our platform to enable brands and retailers to easily participate in the resale economy.”
On the flip side, platforms like Poshmark and Depop are peer-to-peer experiences.
ThredUp’s entrance to the peer-to-peer marketplace coincides with several other notable announcements. This includes the decision to divest its European business and “explore strategic alternatives for Remix” as well as the deployment of three consumer-facing AI tools to enhance the shopping experience.
“This would be great if it actually works as promised, TU is always starting things they don’t finish—PRO bags, anyone? Lasted what, 6 months?” one ThredUp fan posted to a Reddit channel dedicated to the platform. “Seems like they just throw whatever at the wall to make it stick. Not interested in being their tester again. Make sure to read that fine print, they ain’t doing this as a favor.”
