The resale online clothing shop is expanding the used clothing market by partnering with retail brands
Spotted: US-based Thredup has launched a resale marketplace to push itself into retail markets. The marketplace allows Thredup to reach new customers and provides traditional retail with a chance to enter the growing resale sector.
Thredup estimates that apparel resale is growing 21 times faster than traditional retail. The marketplace, called Resale-As-A-Service (RAAS), provides a bridge between traditional retailers and resale customers.
RAAS allows existing retailers, from designers to High Street shops, to use Thredup’s online second-hand shopping infrastructure and gain recognition.
There are three ways to collaborate. Retailers can host Thredup pop-ups in-store or directly from the Thredup site. The third, and most popular option is a loyalty programme. The site has a buy-back programme for people to sell their used apparel for store credit. RAAS retailers can offer credit to clients for trade in their old clothes using Thredup’s buy-back programme.
ThredUp recently announced it secured €158 million in investment to pursue the platform. The company has already signed deals with US retailers like JCPenny and Sweden-based Polarn O. Pyret.