NEW YORK – Online resale business thredUP has announced it has received US$100m in funding which it will use to expand its platform which offers resale clothing services to retailers. The announcement illustrates the mushrooming popularity among consumers of the second market, and follows last week’s announcement by US department store chains J.C. Penney Company and Macy’s Inc that they will partner with thredUP in a bid to lure younger, environmentally conscious shoppers. thredUP is said to currently be in conversations with a number of retailers to look at how it can work with them to help them get a slice of the US$24bn apparel resale market.
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ThredUp has also announced a new platform called Resale-As-A-Service which will allow retailers to partner with it, offering three options: an in-store pop-up, online collaboration or a loyalty program.
ThredUp’s has now raised total funding of more than US$300m and this values the company at US$670m, according to Pitchbook.
Consumers need to download the thredUP app or go onto the resale site and then ship their used apparel, handbags, shoes and jewelry items from more than 35,000 brands such as J.Crew and Old Navy. All items are shipped to customers, with thredUP ensuring they’re in good condition, pricing them algorithmically, photographing them and shipping them.
The company re-sells clothes at up to 90 per cent off retail prices and takes a cut of each sale.
ThredUP has five distribution centers and plans to open a sixth by the end of this year or beginning of next year.