Budget-conscious and eco-minded, today’s retail shoppers crave value and sustainability, backing up those preferences with their wallets. It’s no wonder, then, that secondhand commerce is a global phenomenon, reshaping buying behaviors and driving broad resale demand.
For retailers, resale poses a can’t-miss opportunity to reach new shoppers, boost consumer spend, and keep them coming back for more. thredUP, a pioneer in the recommerce revolution, has fueled much of that transformation with its signature Clean Out Kit. Not only has this innovation invited consumers to glean more value out of their closets while doing good for the planet, it’s also shaped the process by which retailers take back clothing — the first and most important step in enabling resale. Today, thredUP powers resale programs for more than 40 leading fashion brands and retailers, including J.Crew, Tommy Hilfiger and H&M.
The polka-dotted bag: How thredUP’s Clean Out Kit fixed a broken industry
If you’ve ever spotted a pile of teal polka-dotted bags at your local post office, you’re likely familiar with the invention that fundamentally changed how consumers clean out their closets: thredUP’s signature Clean Out Kit. The idea for the Clean Out Kit came in 2009 when thredUP’s CEO and cofounder, James Reinhart, carried a bag full of clothes to his local consignment shop. A grad student with a bloated wardrobe, Reinhart’s attempt to clean out his closet was frustrated by a common obstacle: the local shop refused much of what he brought in, including items from well-known brands in excellent condition.
It’s a predicament many consumers have experienced: You stuff clothes into bags, drive them around in your trunk, hit a couple of consignment shops, then return home with a pile of rejected items. Often the next action is to take those items to donation centers, though in reality most centers receive more items than they can sell, which then end up in landfills. It was a broken system.
“James saw a business opportunity born from a simple problem. ThredUP’s Clean Out Kit removed the heavy lifting that comes with cleaning out your closet and unlocked value in those items,” shares Erin Wallace, vice president of marketing at thredUP. “The ease of thredUP’s Clean Out Kit allows us to take back clothing at scale. It has created a massive amount of inventory, which means we’re able to offer a vast selection of secondhand items and make it more appealing for consumers to choose secondhand first, ushering a new era of sustainable fashion,” she explains.
thredUP’s Clean Out Kit was the company’s key innovation into tackling the now $17 billion resale market. In the 14 years since its inception, thredUP has processed more than 172 million secondhand items and refined the infrastructure to power resale at scale, something traditional retail isn’t equipped to do. In 2019, the company began helping retailers enter the resale movement by establishing take-back programs, and eventually launching full-scale resale shops through its Resale-as-a-Service program. At the core of these programs is the Clean Out Kit.
thredUP’s Clean Out Kit became the gateway to resale for brands
Retailers’ past skepticism of resale has given way to optimism: 86% of retail execs surveyed by thredUP say their customers already participate in resale, and nearly 2 in 3 say resale will be integral to their long-term growth. For 58% of those retailers, offering resale options is now critical.
For many brands, Clean Out programs are the gateway to resale. They are the first step in being able to resell secondhand and provide an opportunity to test the waters with consumers before making an increased investment. Following successful stints with the Clean Out program, brands like Fabletics, Athleta, Vera Bradley, Michal Stars, Polam O. Pyret and YITTY have all expanded their resale programs. We’re seeing more and more new entrants offering digital resale shops right out of the gate,” Wallace notes, citing Tommy Hilfiger, Kate Spade, Hot Topic, American Eagle and J.Crew, among others. Non-apparel retailers like The Container Store, who now provide Clean Out Kits at all 97 locations in the U.S., are also testing resale through Clean Out.“
Adoption of branded resale among retailers has taken off in recent years, largely due to thredUP’s Resale-as-a-Service offering — a term trademarked by thredUP that’s now widely used as the default industry lingo for this type of service, much like Kleenex is to tissues.
Stepping into the resale opportunity
More than a good idea, resale is now a proven concept. Eight in 10 surveyed U.S. consumers say sustainability is an important factor when choosing a fashion brand to shop from, McKinsey reports. Last year, resale grew 5X more than the broader retail clothing sector; and by 2027, that growth is expected to surpass the broader retail clothing sector by 9X, according to thredUP’s Resale Report.
That behavioral shift among consumers was largely fueled by thredUP’s Clean Out Kit, setting in motion a ripple effect for brands and retailers to take action. "Many brands and retailers are adopting circular business models to satisfy rising consumer preference for buying from sustainable brands, and delivering resale experiences in an authentic way that complements the native shopping experience is critical to success," Wallace notes.
Having solved one of the hardest problems in retail, thredUP continues to refine a reverse logistics supply chain that’s created a massive supply advantage. Marketplaces like thredUP have led the last decade of resale. Looking ahead to the next decade, thredUP’s proven model provides an unmatched opportunity for brands and retailers to profit from resale for years to come.