![]() ![]() Reinhart says that Thredup’s scale is its competitive advantage. Much of its investments have been in automating the onboarding of items and developing a database to identify and value items across 35,000 brands and 100 categories. It can process more than 100,000 unique stock-keeping units a day and has built infrastructure designed for “single SKU” logistics. It operates five distribution centres and is currently able to hold 5.5 million items, which it expects to increase to 6.5 million by the end of 2021. In 2020, Thredup spent $100 million on operations, product and technology, up from $82 million the year prior. Partnering with brands to onboard more inventory will help Thredup reach profitability, says Saunders.Īccording to Thredup’s S-1 filing, technology is its largest expense. In addition to its partnership with Thredup, M.M.LaFleur uses Archive to power “Second Act", a peer-to-peer option on its own website, which M.M.LaFleur founder and CEO Sarah LaFleur views more as a customer loyalty channel. The resale market is expected to reach $36 billion by 2024, representing a compound annual growth rate of 39 per cent since 2019, making it the fastest-growing sector in retail, according to a January 2020 survey from GlobalData. ![]() Paris-based Vestiaire Collective coined a $216 million deal with Tiger Global Management and luxury conglomerate Kering, who took a 5 per cent stake. Thredup is the second resale company to go public this year, following Poshmark’s January IPO and The RealReal in 2019. But Thredup, which holds inventory from sellers, is betting its white-label technology can help not only brands but also its own profitability.Ĭompetition in resale has surged in the past year, with heightened industry attention on the secondhand market, due to its relevance among younger customers, substantial growth and sustainability metrics. With 1.24 million active buyers, 428,000 active sellers and $186 million in revenue in 2020, it is yet to turn a profit. Thredup raised $168 million at a market value of $1.3 billion in its initial public offering (IPO) on Friday. ![]() Secondhand clothing site Thredup, now a publicly traded company, wants to build a resale technology solution for brands alongside its customer marketplace. ![]()
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