ThredUp, the 10-year fashion resale market, has plenty of big news lately. To begin with, the company has just completed $ 100 million of new financing from an investor consortium that includes Park West Asset Management, Irving Investors and former lenders, Goldman Sachs Investment Partners, Upfront Ventures, Highland Capital Partners and Redpoint Ventures ,
ThredUP's total capital amounted to over $ 300 million, including a previously unannounced $ 75 million investment made last year, with ThedUp sending clothes to stores that transacted them process their own cash register systems while trying to get customers excited about jewelry, shoes and other accessories.
There's a Lot of What Tradional Retailers Do With the size of the resale market estimated at $ 24 billion, it's not surprising that we see soft-commodities as a potential source of revenue for us, and by 2023 there will be a market of $ 51
Yesterday, we talked to ThredUp founder and CEO, James Reinhart, to learn more about the connection between the two brands and to find out what else holds the start-up together.
TC: You've partnered with Macy's and JCPenney. Did they contact you or advertise ThredUp with traditional retailers?
JR: I think [the two companies] has been thinking about resale for some time. They are trying to figure out how to best serve their customers. In the meantime, we have been thinking about how we can facilitate the resale for a wider range of partners, and six months ago there was a meeting of heads
We start with a pilot program in 30 to 40 stores, but we could go to 300 or scale 400 stores if we wanted.
TC: How will that work exactly with these partners?
JR: We have the architecture [software and logistics] and the selection to assemble carefully selected garments for specific stores, including the right selection of brands and sizes, depending on where, for example, a Macy's is located , Macy & # 39; s then packs a high-quality experience around [those goods]. Maybe it's a dress, but they wrap a handbag and scarves and jewelry around the clothes shop. We believe that [certain] future consumers will buy new and used ones at the same time.
TC: Who is your demographic group, and please do not tell everyone.
JR: It is everyone. It is not a satisfactory answer, but we sell 30,000 brands. We serve many luxury customers with brands like Louis Vuitton, but also sell Old Navy. Customers of all brands want to find brands that they could not afford. They trade with brands whose full price would have been too much, so Old Navy buyers [buying] Gap [whose shopper are buying] are J. Crew and Theory and at the top. We consistently hear that [our marketplace] customers have the opportunity to exchange their wardrobes for higher rates than would otherwise be possible, and they feel as if they are doing it more responsibly.
TC: What percentage of your customers also ship goods?
JR: We're not exactly following that, but it's usually about a third.
TC: Do you think your customers are? Buying high-quality goods with the idea of selling them to pay their total cost? I know that's what CEO Julie Wainwright thinks at [rival] The RealReal. It should all be a kind of virtuous shopping cycle.
JR: We like to talk about buying the purse and then selling it, but many people will also buy a used banana jumper because it is a value [and because] Fashion is the second most polluting industry in the world.
TC: To what extent will you fight this pollution? I'm just curious if you are trying in any way to promote the sale of hemp, unlike, for example, nylon clothing.
JR: We are not using the material selection. Our thesis is that we want to stay out of the fashion business and instead ensure that people responsibly buy second hand.
TC: For people who have not used ThredUp, go through the economy. How much of each sale does someone keep?
JR: On ThredUp it's not a single payment. it rather depends on the brand. On the luxury side, we pay [sellers] more than anyone else – we pay up to 80 percent if we resell it. If it is Gap or Banana Republic, you may receive 10, 15 or 20 percent based on the original price of the item.
TC: How would you describe your standards? What flows into the waste pile?
JR: We have high standards. Items must be in mint or carefully used condition, and we reject more than half of what is sent to us. But I think there is probably more room for theories and J.Crews of the world than if you buy a Chanel dress.
TC: Unlike some of your rivals, you do not sell to men. Why not?
JR: Men are a small second-hand market. Men wear the same four colors – blue, black, gray and brown – so this is not a big resale market. We sell children's clothing and that's a big part of our market.
TC: If Macy's now sells a dress from ThredUp, how much will you see from this transaction?
JR: We can not share the details of the economy.
TC: How many people are now working for ThredUp?
JR: We have less than 200 at our corporate headquarters in San Francisco and 50 in Kiev, and then have four distribution centers – in Phoenix; Mechanicsburg [Pa.]; Atlanta; and Chicago – we have another 1,200 employees.
TC: You raised a lot of money last year. How is it used?
JR: On our resale platform [used by retailers like Macy’s] and building our technologies and operations, as well as building new distribution centers to process more garments. We can not get people to stop sending us anything. [Laughs.]
TC: What's the most underrated aspect of your business before you get started?
JR: Logistics behind the scenes. I think for every big e-commerce company there is incredible logistics [challenges to overcome] behind the scenes. People do not know how hard the piece is next to the data. We will be processing our 100 millionth item by the end of this year. That's a lot of data.