Retail

thredUP Takes On Luxury Consignment Giant

Getting a little more bang for your buck has always been a coveted part of the consumer retail experience.

Within the last decade, consumers have seemingly been a bit more wary of purchasing luxury items at their full retail price. The 2008 recession essentially raised a generation of consumers that are always looking for a bargain at any time of the year.

As such, it should come as no surprise that high-end items have found their way into secondhand stores all over the country.

In an effort to help broaden this consignment retail sector, thredUP just ramped up the competition by opening up a luxury goods storefront dubbed Luxe. Anyone looking to get rid of a few items can sign up for a clean-out kit from threadUP, who will create listings on Luxe and give sellers up to 80 percent of the profit. However, as an incentive to gain new users, thredUP is waiving 100% its commission for Luxe between now and Labor Day.

Some are viewing this move by thredUP as a direct reaction to The RealReal’s recent $50-million round of funding for its own expansion in the high-end secondhand space. The ReaReal offers up 55 percent commission to sellers, and Luxe’s 80 percent commission seems to be more enticing.

It’s also worth noting that Luxe is focusing in on fewer items than The RealReal, which may help boost its early revenue numbers.

“Demand for luxury goods on threadUP is currently outpacing supply, with more than 60,000 searches for luxury brands each week. We created thredUP LUXE to bring in the supply to meet that demand,” said thredUP co-founder and CEO James Reinhart, on the launch of Luxe.

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