Second-hand clothing platform ThredUp tests peer-to-peer resale marketplace feature

It is learned that recently, according to foreign media reports, the second-hand clothing platform ThredUp is testing a new peer-to-peer resale market function (a market where consumers directly trade second-hand goods) to compete with second-hand resale platforms such as Poshmark, Mercari and Depop. Although the specific launch time of the new market is still unclear, relevant information can be found on the ThredUp website.

The feature is in beta. It’s unclear how many buyers or sellers will have access to the marketplace, but it’s easy to find on the ThredUp website. (The marketplace option doesn’t appear on the mobile web or ThredUp app.) Clicking the “Sell” option on the ThredUp homepage will bring up a “New Direct Listing” link in yellow font, where interested users can sign up to join the waiting list.

ThredUp's peer-to-peer marketplace marks a major shift in its business model. In the past, ThredUp mainly sold second-hand clothing from brands or consumers no longer wanted, but the new "direct listing" feature makes it more like Poshmark. Sellers can take photos of the items for sale and upload detailed information, including size, price and brand. Items will remain on sale until they sell, and sellers can choose to get store credit or cash out after shipping with a prepaid shipping label.

It is worth noting that during the testing phase, ThredUp's peer-to-peer marketplace claimed to charge no sales fees, while Poshmark charged a flat fee of $2.95 for items priced under $15, or a 20% commission for orders over $15. Mercari and Depop also have their own fee schedules, while ThredUp's traditional service charges customers $14.99 to mail packages, plus a commission on the sale of goods.

ThredUp's new model eliminates the need to pay for additional warehouse and photography fees, as sellers can list and ship items themselves.

Although ThredUp set a record revenue of $322 million last year, it still faces a net loss of $71 million. Since its listing in 2021, its stock price has shrunk by more than 90%. In the second quarter financial report, ThredUp's revenue in the European market fell 18% year-on-year, and it revealed that it would withdraw from the European market and focus on the US market.

Author✎ Summer/
Disclaimer: This article is copyrighted and may not be reproduced without permission. If you need authorization, please contact: happy