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.

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.”

ThredUp has quietly launched a peer-to-peer marketplace

Secondhand apparel platform ThredUp is testing out a peer-to-peer resale marketplace, which would be a big departure from its existing model.

Modern RetailAllison 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.

Depop Expands No Selling Fees To US Market As Pre-Loved Clothing Competition Heats Up

Etsy-owned Depop is going full speed ahead with new fee structure, expanding no selling fees to US after similar changes in UK earlier this year.

Value Added ResourceLiz 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.

Poshmark Gamifies Listing Process With New Listing Streaks Reward Program

Poshmark looks to gamify listing process, hoping to get more items on the site by offering rewards to sellers for maintaining listing streaks.

Value Added ResourceLiz 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.

eBay Goes Permanently Fee Free On Pre-Loved Clothing From Private Sellers In UK

Private eBay UK sellers will no longer pay listing, final value or regulatory fees on sales of pre-owned clothing as C2C strategy shift continues.

Value Added ResourceLiz 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.

Mercari Shifts Fees From Sellers To Buyers, Adds 3 Day Returns For Any Reason

Mercari drops selling fees, passes payment processing & service fees on to buyers but there’s a catch - items can now be returned for any reason!

Value Added ResourceLiz 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.

Mercari US Undertakes Mass Layoff Months After Major Fee Structure Shakeup

Mercari US has undertaken a significant mass layoff, eliminating 45% of staff months after major fee structure & business operations shake up.

Value Added ResourceLiz 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!