ThredUp Beta Tests "Direct Listing" Peer To Peer Selling
Pre-loved fashion site ThredUp is testing a new Direct Listing option that will allow users to sell directly to other users in peer to peer business model shake up.
Traditionally, ThredUp has set itself apart from sites like Poshmark and eBay with it's "done for you" managed resale model.
But this new offering will go head to head with those competing marketplaces, putting users in the driver's seat to list, sell, and ship directly to buyers.
Details are sparse and interested sellers must sign up for a waitlist at this time. ThredUp says there will be no selling fees, at least to start, but it's unclear whether there will be fees to receive payouts and/or if fees will be passed on to buyers as some competitors have done.
Direct Listing BETA
Interested in listing items yourself on ThredUp and keeping all the earnings?How it Works
Create Your Listing
Take photos of your item, add the brand, size, quality, price, and any special details. Your item stays listed until it sells, or you unlist it.Ship Item to Customer
Once your item sells, use the pre-paid shipping label sent via email.Earn Credit to Shop or Cash Out
There are no selling fees, so what you earn is yours to keep for all items listed yourself.
ThredUp hasn’t made any official announcement about Direct Listing yet, but the new feature was spotted by Danielle Vermeer, the founder of thrifting app, Teleport.
Update: is @ThredUp launching a peer-to-peer resale marketplace to compete vs. Poshmark, Depop, etc.?
— Danielle Vermeer (@DLVermeer) August 17, 2024
"Direct Listing" is now in beta on ThredUP's site:
• seller creates own listing & price
• ships item directly to buyer
• "no selling fees" https://t.co/4r74w8kUkC pic.twitter.com/OML1Ppk6Tf
A ThredUp spokesperson told Modern Retail:
“ThredUp revolutionized the selling experience for thrifters when we pioneered the cleanout kit more than a decade ago. As innovators in the resale industry, we are always exploring new ways to offer the most convenient and rewarding selling experience for everyone.”
Allison Smith
The move comes as the race to capture a larger piece of the consumer to consumer (C2C) reselling market heats up, especially in the secondhand clothing segment.
Etsy-owned fashion marketplace Depop dropped selling fees in the UK earlier this year, instead instituting an "up to 5%" marketplace fee for buyers, and expanded that new fee structure to the US in July.
Liz Morton
Poshmark has not yet made any big changes to their fee structure but did recently introduce a Listing Streaks reward program that offers rewards in the form of account credits for sellers who maintain consistent listing activity and bring new inventory to the site.
Liz Morton
eBay announced pre-loved clothing sales will be permanently fee free in the UK for private (non-business) sellers starting in April 2024 after successfully launching fee-free selling for private users in Germany across all categories in 2023.
Importantly, unlike other competitors, eBay has not passed any of the fees on to buyers - so far.
Liz Morton
Meanwhile, Mercari may hold some hints as to the possible challenges and pitfalls that may lay ahead for competitors since they undertook a similar fee structure shake up in March, getting rid of selling commissions and shifting variable item fees and payments fees to buyers instead.
Liz Morton
The change has not gone smoothly for Mercari as they quickly backtracked on new returns policy, and have had to run sitewide discount and new seller promotions in a desperate attempt to buy their way into GMV and Active Users growth that has stalled amidst increasing buyer pushback and cart abandonment caused by the implementation of this new fee structure.
The short-term picture looks so bleak that Mercari recently laid off ~45% of US staff.
Liz Morton
Mercari US CEO John Lagerling quietly broke the news to employees in an internal Slack message, saying:
"Today, we are delivering the difficult news that we will be reducing our U.S. workforce by approximately 45%. I’m sorry that we must take these actions today. You are owed a reason why. First, let me just say that you showed up with talent, professionalism and grit during some tough times. The reason is simply, our business has not performed well amid macro headwinds and, admittedly, some strategic mistakes."
"...we grew too quickly in the belief that our business would have continued post-pandemic lift, which did not occur. We did not successfully navigate the post-pandemic developments, and I feel a strong sense of responsibility for that."
"More recently, changes to our fee structure have helped us increase listings, but have not yet delivered the short-term results that we had hoped for on the buyer / GMV side. To remain viable in the U.S. market and ultimately get back on track, we must cut costs and consolidate quickly."
While there are certainly many differences between these companies, Mercari's early results raise some troubling concerns and challenges that others, including ThredUp, will have to tackle head on if they hope to see long-term success with these initiatives.
What do you think of ThredUp's new Direct Listing peer to peer selling option? Let us know in the comments below!
