They are sending in fewer bags, filling those bags up more and including higher quality items, all of which Reinhart attributed to the shift in mindset “when people are paying for a service.” In addition to offsetting the cost of shipping and processing, Reinhart said that the new fee structure is driving some beneficial changes among sellers. We’re seeing consumers really understand why we’re making some of these changes.” I have to say, we feel very good about the test results. “We’ve been testing fees at different price points and also, similarly, with paying for the cleanout bag.
“Demand for our cleanout service has never really waned, so we’re looking for ways we can prioritize our best sellers and also monetize the brand equity that we built at ThredUP as being the most convenient place to clean out your closet,” said Reinhart. Either way, sellers also will pay a $14.99 fee for the processing of the items they send in, with the option to pay $22.99 for expedited three-week processing.
#Thred up download
Sellers now have the choice to download a free label and ship the items they want to sell in their own packaging, or pay $2.99 to receive one of the brand’s iconic polka dot cleanout bags.
#Thred up trial
However, Reinhart said he is “cautiously optimistic for resale in 2023” and is positioning the company to move from playing defense to offense as these “competitive dynamics normalize.”Īmong those offensive plays is a trial of new fees for ThredUp’s cleanout service, which was previously free. We saw many of our core shoppers sitting on the sidelines, and for those that were in market, the resale value proposition was diluted relative to the exceptional bargains being offered for new clothing.”
“The ThredUp brand stands for value and that message was being washed out in this hyper-promotional landscape. “While we don’t face the same inventory risks as traditional retailers due to our consignment model and flexible supply chain, we believe we were affected by this influx of cheaply priced clothing,” said Reinhart on the company’s Q4 2022 earnings call. ThredUp beat expectations for Q4 2022 but still saw revenues decrease 2% year-over-year, to $71.3 million, which the company attributed to the wider pullback in consumer discretionary spending as well as an influx of discounted product from other retailers during the holiday season. ThredUp has quietly rolled out these changes in what CEO James Reinhart called “a meaty experiment” to optimize its unit economics by making “real-time adjustments to both the supply and demand sides of our business.” Reinhart said the company hopes to reach adjusted EBITDA break-even by the back half of 2023.
“Standing behind our commitment to help create more sustainable future, partnership with thredUP innovatively gives new life to clothing and accessories that might otherwise contribute to the throwaway fashion culture we are working to eliminate.Marking a significant shift in ThredUp’s value proposition to consumers, the resale marketplace testing out a number of new initiatives to improve its margins, including new return policies and fees for its “cleanout kit” consignment services. The customers can click and select the product of their choice to get more details about it and understand the sustainable change they will bring by choosing second-hand products.ĪE and Aerie president and chief creative officer Jennifer Foyle said: “We are passionate about finding new and exciting ways to connect with our customers and RE/AE’s accessible, digital-first, circular shopping experience provides an opportunity to refresh your closet by shopping pre-loved, iconic styles from a brand that has defined youth culture for decades. The resale shop has been set up as a vintage store and will display AE-curated clothes. This Snapchat pop-up on the digital shop allows the customers to view the available collection using an AR shopping Lens. The clothing brand has also partnered with Snapchat to use its augmented reality (AR) lens to showcase specially curated styles from RE/AE’s initial 200-piece collection.
0 kommentar(er)
