ThredUp restructures second-hand selling service, significantly reduces costs
Revamped Resale Game: ThredUp's resale-as-a-service (RaaS) is having a massive overhaul, introducing exciting new features and a fresh fee structure. According to the recent announcement, ThredUp is ditching upfront and monthly fees for branded resale shops and slashing usage-based fees for cleaning out closets and customer payouts.
They're also opening up their RaaS software to partners for free, turning it into a universal recommerce layer – a move that could revolutionize the way brands peddle pre-owned items, much like Amazon Web Services altered cloud services or Shopify transformed e-commerce for small businesses. ThredUp's CEO, James Reinhart, shared his thoughts on LinkedIn, stating that they're aiming to lower barriers for brands to not just partake but lead in the world of circular retail.
ThredUp also sees this strategic evolution of RaaS as a potential tariff defense, providing brands with a supplemental revenue stream centered around domestic goods. Given the ongoing shifts in trade policy, there's growing interest in the resale industry, and ThredUp predicts an increase in demand for secondhand goods[5].
ThredUp remains hopeful for the future, anticipating a 10% growth in revenue for both Q2 and fiscal 2025, reaching between $281 million and $291 million[1]. They're also collaborating with Beyond Retro to curate a vintage pop-up this month, offering over 17,000 women's apparel items priced between $10 and $200[3].
So, fasten your seatbelts, as ThredUp is planning to introduce a peer-to-peer resale platform by year-end, enabling consumers to sell items directly among themselves. And get ready, brands, because you'll soon have the option to integrate peer-to-peer sales into your resale shops, bringing a fresh wave of engagement to your customers[5].
- The revamped ThredUp resale-as-a-service (RaaS) could potentially shift the traditional business model of selling pre-owned items, much like Amazon Web Services did for cloud services or Shopify for small e-commerce businesses.
- ThredUp's CEO, James Reinhart, believes that the evolution of their RaaS could lower barriers for brands, encouraging them not just to participate but to lead in the world of circular retail.
- Amid ongoing shifts in trade policy, ThredUp sees the potential for a surge in demand for secondhand goods as a tariff defense, offering brands a supplemental revenue stream centered around domestic goods.
- In the financial forecast, ThredUp predicts a 10% growth in revenue for both Q2 and fiscal 2025, reaching between $281 million and $291 million.
- As ThredUp plans to introduce a peer-to-peer resale platform by year-end, AI technology may play a significant role in the future of business, labor, and finance, enabling direct consumer-to-consumer trade and potentially revolutionizing the fashion industry.
