“The curation of secondhand is one of the big barriers,” says Nancy Bocken, a professor of sustainable business at Maastricht University since it can be a challenge to “find the right size or style.” “It remains to be seen if technologies that make secondhand more convenient will convince those who are currently ambivalent about it,” said Elisa Niemtzow, vice president at BSR, a consulting company.ĥ. To bring in more revenue ThredUp also offers a “resale-as-a-service” program where retailers partner with ThredUp to offer customers a store credit when they list one of the brand’s clothing items on ThredUp’s site. With the resale space heating up ThredUp sees a number of resale sites as well as traditional retailers as its competition including: The RealReal, Poshmark, eBay, Amazon, Walmart, Kohl’s, TJ Maxx and Burlington Stores.ĭespite the fast growth of the secondhand market analysts say there are barriers to adoption. For example, if an item sells for more than $200 ThredUp receives a 20% commission but if an item sells for $10 it receives a commission of between 85% to 97% of the selling price of the item.Ĥ. The resale market is expected to grow quickly from $15 billion in 2021 to $47 billion by 2025. Once a buyer purchases an item ThredUp receives a commission on a sliding scale where it receives a higher percentage commission for lower priced items and a lower percentage commission for higher priced items. Then ThredUp inspects and photographs the merchandise before posting the items on its website. ThredUp operates mostly on a consignment model where sellers send in their used items to ThredUp. It also received a 75% increase in garments from the PrettyLittleThing brand versus the prior year.ģ. Last year ThredUp received 186% more garments that were originally purchased from Shein than what was received in 2020. ThredUp has found that a lot of the clothing sold on its site is from fast fashion retailers like Shein and PrettyLittleThing. But since then ThredUp’s valuation has dropped quite significantly and the company is now valued at $170 million.Ģ. ThredUp went public last year and raised $168 million in its initial public offering and was valued at $1.7 billion at the company’s opening price on the stock market. If you are curious about ThredUp’s growth and challenges then consider these eight aspects of its business.ġ. I certainly didn't appreciate how that insight could eventually upend how we look at innovation in retail, the apparel industry, and our environment.” Reinhart hasn’t looked back since and ThredUp continues to acquire new customers today. I knew there was value locked up in those clothes, and I knew I wasn't the only one. ThredUP which was founded in 2009 has become one of the more popular destinations for secondhand clothing with the CEO of ThredUp, James Reinhart, saying that: “I started ThredUp back in 2009 after staring at a closet full of clothes that I never wore. When you are shopping for a new outfit do you buy new or do you spend your time sifting through racks of clothing in a thrift store? Or is your first course of action to head to a resale website like ThredUp? While many people still like the treasure hunt aspect of going to a thrift store some find it more convenient to shop for secondhand apparel online.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |