ThredUp the online designer resale thrift store just received $81 million dollars in funding. Yep, $81 Million. You can read the whole story over at ReCode but if you’ve never visited their website, I’ll break it all down for you.
There are a couple of things I like about ThredUp and what they’re doing differently and there’s a couple of things I don’t. First, when your cleaning your closets out and you don’t want to add more clothing to the landfills or you’ve seen how overstuffed your local Goodwill is, ThredUp “Supports causes that strengthen our communities and keeps clothing out of the landfills”. Up-cycling seems to be the trend and for that, they’re doing it right. Click here to learn more about how and who they help.
Now, with the new round of funding they received, they’re trying to market to a higher end clientele to bring in more designer items. Here’s where it’s going to be difficult for them. They have already branded themselves as a marketplace with a conscience, for Moms and Kids. To be able to attract a higher end clientele with big ticket items, they’ll need to make a couple of changes.
Their payout is the first one; it’s really low. Like cents on the dollar low. For some lower end brands it totally makes sense but for the higher end brands and the direction they are tying to go in, it’s not going to happen. You can see below from snapshots taken from their website the estimated payouts for your items. First is Express and the second is Louis Vuitton.
I am not willing to send in a $2,000 Louis Vuitton and receive a 1/4 of the selling price especially when there are so many other options out there.
The second thing I think they should do is create a higher end sister site. This way they can adjust the commission split to a more favorable one and get more people interested in their business. Even utilizing a threshhold for items like below:
$0 – $300 = 40% payout
$300 = 60% payout
So if I have a gently used Rebecca Minkoff bag, an older Louis Vuitton and a ton of my daughters Target clothes, I can send them all to the same place and know that I am getting a fair cut of the selling price.
Bottom line, if you want to do good for the planet and you have more middle of the road items (J.Crew, Coach, Banana Republic, Mossimo) and want to make a couple of bucks (literally) then ThredUp is the way to go. The process is super easy and you can get started here.