US-based fashion resale marketplace thredUP has reportedly raised $175m in funds, and has also unveiled a new platform designed to let retailers get in on the resale revolution.
The platform, Retail-as-a-Service (RaaS), offers brands and retailers three options:
Recycling rewards: Customers can send their clothes to thredUP and earn shopping credit (clothing brand Reformation sends its customers thredUp clean out kits with their orders, which can be converted into cash to spend at the brand).
Foot and Site Traffic via Secondhand Pop-Ups: Retailers can add thredUP products to their websites or stores via secondhand pop-ups (discount department-store Stage Stores has added thredUP pop-ups to its stores).
Customer Acquisition via thredUP’s Marketplace: Retailers can be added as a cash-out option at thredUP, giving the resale platform’s customers the option to spend their earnings with particular brands. Partners include Reformation, Polarn and O. Pyret.
ThredUp claims that RaaS lets brands easily participate in resale, thus increasing loyalty and driving revenue.
With US brick-and-mortar and department stores in particular having a tough time of late, this model might just give the market a much-needed boost.