ThredUP is coming for the luxury consignment space and its latest feat could give sites like The RealReal a run for its money.
The online thrift store, which is considered a leader in the $18 billion apparel resale industry, recently launched its first luxe consignment service, where sellers can earn up to 80 percent commission for their sold items.
The process is similar to selling on the regular ThredUp site: the seller receives a free clean out kit, fills it with their items and ships it back using a prepaid label.
Like other luxe consignment platforms, ThredUP has its own trained luxury authenticators that inspect products. The authenticators review the category, hardware, labels, logo and material of items in a timely manner. They then photograph and itemize accepted items. Products that don’t pass inspection are sent back for free. Sellers can also edit the suggested price and reclaim items that don’t sell within 90 days. Over 600 luxe brands, including Chanel and Marc Jacobs, have been accepted by the new service.
[Read more about secondhand’s surge: Watch Out Retail, Re-Commerce Could be Off-Price’s Next Competitor]
ThredUP is also offering a special promotion for early bird sellers. Sellers that send in luxury products by Labor Day are eligible for a 100 percent commission on sales. Items sold after Labor Day are eligible to receive up to 80 percent commission. Once a sale is complete, consumers will receive their commission amount in the form of a store credit, where they can use that commission to shop on ThredUP’s site or cash out via PayPal after 14 days.
In addition to the company’s expansion into luxury, the e-tailer recently announced it will open at least five physical stores by the end of this year. In June, ThredUP opened its first brick-and-mortar store in San Marcos, Texas, where the company says many ThredUP consumers already live. What’s more, ThredUP recently tapped into the Canadian market. Since June 29th, Canadian consumers have been able to shop from over one million apparel, accessory and footwear products on the site and sell their secondhand items.
To keep up with demand for deals and unique items, ThredUp also just opened a fourth distribution center.