ThredUp Eliminates Fees and Rewrites the Rules for Branded Resale

With an open-source approach, ThredUp’s Resale-as-a-Service now pairs its signature Clean Out program with free customizable branded resale shops – making both programs completely free from upfront or monthly fees.

OAKLAND, Calif. May 6, 2025 - ThredUp (Nasdaq: TDUP, LTSE: TDUP), one of the largest online resale platforms for apparel, shoes, and accessories, today announced a significant evolution of its Resale-as-a-Service (RaaS) offering, designed to more easily empower brands and retailers to scale and profit from resale. Building on recent technological advancements and a vision to make resale more accessible, ThredUp is removing branded resale fees and introducing a suite of enhanced services to its partners.

Recognizing the current market challenges where "resale" often includes new overstock and returns, ThredUp is taking an open-source approach to technology and infrastructure to enable brands to build impactful circular programs.  This approach is part of ThredUp’s belief that over time, the ecosystem will benefit from a powerful, affordable “universal recommerce layer” — akin to what Amazon Web Services has done for cloud services or Shopify has done for small business — enabling brands to do everything they need across the resale ecosystem.

"We believe the future of retail is circular, but for branded resale to truly scale, it needs to be accessible and cost-effective," said James Reinhart, CEO of ThredUp. "We’ve seen that current resale solutions often fall short, burdening brands with complex operations and limited impact. ThredUp’s new approach is designed to change that. By offering our technology and operational expertise for free, we’re empowering brands to build authentic circularity into their core business models."

ThredUp’s Universal Recommerce Layer (URL) offers brands the opportunity to:

  • Build Resilience: In an era of trade uncertainty and changing tariff policy, URL offers a platform for brands to generate domestic, supplemental revenue streams by tapping into domestically-sourced supply and selling stagnant inventory. This reduces reliance on potentially volatile overseas supply chains.

  • Capitalize on the Growing Secondhand Market: The secondhand market is booming, and branded resale provides a seamless way for brands to directly participate, turning potential liabilities like customer returns into revenue-generating assets without significant operational disruption.

  • Leverage Sustainability as a Strategic Advantage: Working with ThredUp strengthens brands' sustainability initiatives, diverting textiles from landfills and attracting environmentally conscious consumers, ultimately enhancing brand reputation and driving customer acquisition.

The enhanced Resale-as-a-Service offering will now offer:

  • Free Branded Resale Shops (with the integration of its discounted Clean Out Program): Fully customizable online storefronts that reflect the brand's aesthetic, complete with brand catalog integration, incorporation of existing brand photography, and enhanced customization options. Brands can also leverage ThredUp’s generative AI technology to support dynamic merchandising at lower costs.

  • Better Economics: Brands will earn a revenue share on items sold from ThredUp's existing inventory within their branded shop and retain 100% of the revenue generated from their directly provided secondhand items. Upfront and monthly fees for branded resale shops have been eliminated.

  • Clean Out Program Integration: Lowered usage-based fees on ThredUp’s popular Clean Out program to drive consistent inventory of quality secondhand items and foster brand loyalty.

  • Cost-Effective Cleaning & Repair Options: Access to ThredUp’s network of cleaning and repair partners to facilitate the integration of affordable cleaning and repair services.

  • Boost in New Customer Acquisition with Lower Cash Out Fees: Lowered usage-based fees on its cash out program, where ThredUp customers exchange consignment earnings for store credit with participating brands.

  • Marketing Support: Customized tile advertisements on brand product pages on thredup.com at no additional cost, along with social media and marketing collaborations to highlight brands' resale leadership.

  • Facilitation of “Next Best Use” for End-of-Life Garments: ThredUp will connect brands with its vetted aftermarket partner network to ensure environmentally conscious processing for unsellable garments and provide data to inform stakeholder decisions.

  • Peer-to-Peer Selling Capabilities: By the end of the year, ThredUp will launch its own peer-to-peer resale platform and integrate this capability into branded resale shops.

  • Expanded Reach with Menswear: ThredUp can now support listing a brand's menswear on their resale shop. Additionally, with the forthcoming launch of the peer-to-peer platform, customers will also be able to list men's items within a brand's ecosystem.

  • Future-Proof Operations with Overstock Solutions & Simplified Returns: Brands can increase revenue by moving stagnant inventory through ThredUp's marketplace and their resale shops. By year-end, ThredUp will introduce enhanced integration capabilities for returns.

  • Advanced AI Technology: Opportunity for integration with ThredUp’s built-in AI search and discovery tools for an optimized customer experience.

Brands and retailers interested in learning more about ThredUp's enhanced RaaS offering can visit www.raas.thredup.com or contact the dedicated RaaS sales team at RaaS@thredup.com.

About ThredUp

ThredUp is transforming resale with technology and a mission to inspire the world to think secondhand first. By making it easy to buy and sell secondhand, ThredUp has become one of the world's largest online resale platforms for apparel, shoes and accessories. Sellers love ThredUp because we make it easy to clean out their closets and unlock value for themselves or for the charity of their choice while doing good for the planet. Buyers love shopping value, premium and luxury brands all in one place, at up to 90% off estimated retail price. Our proprietary operating platform is the foundation for our managed marketplace and consists of distributed processing infrastructure, proprietary software and systems and data science expertise. With ThredUp’s Resale-as-a-Service, some of the world's leading brands and retailers are leveraging our platform to deliver customizable, scalable resale experiences to their customers. ThredUp has processed over 172 million unique secondhand items from 55,000 brands across 100 categories. By extending the life cycle of clothing, ThredUp is changing the way consumers shop and ushering in a more sustainable future for the fashion industry.

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