ThredUp Pivots Service Platform to Online Consignment
Re-Vamping the Site Brings Startup Hopes of Future Success
Serving over 300,000 moms is nothing short of an intimidating task. ThredUp, launched in April 2010 in San Francisco, originally began to help mothers save time and money by introducing a clothing swap platform. With the idea of “clothes don’t grow and kids do,” the site was one of the first of its kind but wasn’t reaching its anticipated goals. Nonetheless, the company has continued to receive funding. With its original $1.4 million start in mid 2010 to the site’s $7 million in Series B funding, innovation kept growing in the sites headquarters. To date, 2 million items have been exchanged with a consistent growth of 500+ members a day. However, the site has recently launched a new platform to replace the original swap technique to enhance the overall site and shopping experience – a comprehensive kid’s consignment service including two main activities of the shop and the concierge recycling program headlining the offering of the company.
ThredUp’s new consignment platform includes two new resale services: an online “like-new” clothing store and a clothing recycle clean out. Together these components will become the new platform of the site. The original swap technique will end March 21. Furthermore, the updates bring with them a revamped site that provides the services in an easy and quick manner.
The clothing clean out allows thredUp to mail the users a post-ready bag at no charge that is to be filled with previously worn children’s clothing. When the bag is received at the thredUp offices, the company’s team of “moms” will inspect the clothing and decide on the return paying price per piece. Users will then receive 20-30% of the items original value through the users PayPal account. The clothes are professionally photographed and placed on thredUp’s second new service, their online consignment store. In the store, the clothing that mom’s have previously “cleaned out” are sold to thredUp users starting at $2.49. The site guarantees quality of the resale items and gives users free shipping on orders of $30 or more. The new consignment shop service brings the company to compete with eCommerce giants eBay, Craigslist, and Amazon.
The new platform for thredUp has brought excitement to its previous swapping users. Customers can now gain cash back on previously worn items and then use that money to purchase new items in the consignment shop. The revamped site helps busy parents more than before by allowing them to pick and choose what to buy and also receive money back for cleaning out their children’s closets. Rather than swapping, the startup has thought about greater incentives in the form of cash rebates. Although the site now entails users to pay for new apparel, the benefits have gotten much greater.
by Samara Freschman