Selling on ThredUp can be a convenient way to clear out your closet and make some extra cash. However, many sellers fail to truly maximize their earnings. This blog post reveals insider tips and tricks from seasoned ThredUp sellers to help you boost your profits.
Table of Contents
- Understanding ThredUp
- 3 Powerful Strategies to Maximize Your ThredUp Profits
- Pro Tips to Boost Your Earnings Even Further
- Common ThredUp Pitfalls to Avoid (and How to Steer Clear)
- Is ThredUp Right for You?
- FAQ Section
Understanding ThredUp
ThredUp’s appeal lies in its simplicity. Here’s a quick recap of how it works:
- Clean Out Kits: You begin by ordering a Clean Out Kit. You can either print a free shipping label and use your own box (up to 30 pounds) or request a giant ThredUp poly bag, which they’ll mail to you.
- Processing Times: Be prepared to wait! Standard processing can take several weeks, especially during peak seasons. Expedited processing (for a fee) cuts down the time, but it still takes a couple of weeks.
- Listing & Sales: ThredUp handles all the listing and selling for you. They photograph, price, and list your items. Buyers purchase directly from ThredUp, and you receive a payout once the item sells and the return window closes.
- Unsold Items: Here’s the catch – items that don’t sell within the specified timeframe (60 or 90 days, depending on the brand) become ThredUp’s property.
3 Powerful Strategies to Maximize Your ThredUp Profits
To make the most of ThredUp, you need to adopt the right strategy. Here are three proven approaches:
- Strategy 1: Liquidation for Stale Inventory
- This strategy is ideal for clearing out items you’ve had sitting in your inventory for a while and are ready to get rid of, even if it means accepting a lower payout.
- Don’t pay extra for expedited shipping or return assurance for these items.
- Use this as a last resort for items you’d otherwise donate.
- Strategy 2: Buy Low, Sell Low, Sell Fast
- Source items specifically for ThredUp from discount stores, thrift bins, or similar places, aiming for a price of $2 or less per item.
- Price these items lower than usual to encourage quick sales. Don’t be afraid to accept a smaller profit margin per item, as the volume of sales can make up for it.
- Focus on brands that have a proven track record of selling well on ThredUp, even if they’re not high-end. Good examples include Ann Taylor, Chico’s, and Banana Republic.
- Strategy 3: Capitalizing on Higher-End Items
- Source new-with-tags items of popular and trendy brands. Consider sourcing from liquidation pallets or retail arbitrage opportunities.
- Price these items strategically, aiming for 80% of their retail value to maximize your profits.
- Be willing to pay the $5.99 reclaim fee if items don’t sell within the 60 or 90-day window. Since you’re sourcing these items at a lower cost, you can still make a decent profit even after paying the reclaim fee.
- Focus on brands that are in demand and have a good resale value. Examples include Romy Brook, Theory, and Vince.
Pro Tips to Boost Your Earnings Even Further
- Know Your Brands: Do your homework! Research what brands consistently sell well on ThredUp and for how much. Use their website to check prices and compare them to your sourcing costs.
- Master the Pricing Game: NEVER settle for ThredUp’s initial price estimate. You have a 12-hour window to adjust prices, so take advantage of it. Always aim for 80% of the retail value, but be mindful of the 50% rule. If you price an item above 50% of ThredUp’s recommended price, you’ll have to pay a $5.99 reclaim fee if it doesn’t sell.
- Leverage ThredUp Lux: ThredUp Lux is a dedicated program for selling luxury brands. Use Lux labels for eligible items to ensure faster processing (when available). Keep in mind that ThredUp has recently tightened its Lux restrictions, requiring the majority of items in a Lux box to be actual luxury brands.
- Optimize Your Shipping: Always try to send full 30-pound boxes to minimize processing time. Due to processing backlogs, sending multiple smaller boxes can result in significant delays.
Common ThredUp Pitfalls to Avoid (and How to Steer Clear)
- Long Processing Times: Be patient! ThredUp is known for its lengthy processing times. Manage your expectations and don’t expect to get your money quickly, especially during peak seasons.
- Low Payouts for Low-End Items: ThredUp’s commission structure heavily favors higher-priced items. While the Buy Low, Sell Low strategy helps mitigate this by focusing on volume, you still need to be aware that your payouts for lower-end items will be significantly smaller.
- Return Assurance Fee: The $10.99 return assurance fee might seem like a good safety net, but it’s not always worthwhile. Consider carefully whether to pay for it. If you’re confident an item will sell and is unlikely to be returned, you can skip the fee.
- Limited Brand Acceptance: ThredUp has a growing list of brands they won’t accept, and they can change their acceptance criteria without much notice. Always double-check their payout guidelines and ineligible brand list BEFORE sending anything in to avoid your items getting rejected or receiving a low payout.
Is ThredUp Right for You?
ThredUp can be a good option for casual sellers who:
- Have limited inventory and are mainly looking to declutter their wardrobes.
- Prefer a hands-off approach to selling, as ThredUp handles everything for you.
However, if you’re a high-volume reseller, you’re likely better off selling on platforms that offer more control and higher profit potential, such as:
- Etsy: Great for handmade, vintage, and unique items.
- eBay: Offers a wide audience and the ability to set your own prices.
- Poshmark: Strong community focus and a popular platform for fashion resale.
- The RealReal: Specializes in authenticated luxury goods.
- Whatnot: Live auction platform, great for engaging with buyers in real time.
- Amazon Renewed: Dedicated platform for selling refurbished and pre-owned electronics.
FAQ Section
- Q: Can I get my unsold items back from ThredUp?
- A: Yes, but only within a limited timeframe. You have 60 or 90 days (depending on the brand) to pay a $5.99 reclaim fee per item to get unsold items back. If you don’t reclaim them within that period, they become ThredUp’s property.
- Q: How long does it take to get paid by ThredUp?
- A: Processing can take several weeks, even with expedited shipping. Additionally, payouts are pending until the 14-day buyer return window closes. So, don’t expect to see your money right away.
- Q: I only have a few items to sell. Is ThredUp still a good option?
- A: If you only have a few items, it depends on your priorities. ThredUp can be convenient, but keep in mind the potential for lower payouts and the possibility of losing your items if they don’t sell.
- Q: Does ThredUp take all brands?
- A: No. ThredUp has a list of ineligible brands that they won’t accept, and they’re constantly updating it. Always check their brand guidelines before sending your items.
- Q: What’s the best way to get my items processed faster?
- A: Send a full 30-pound box and request a Lux label if your items are eligible. However, be aware that even with these measures, there can still be processing delays, especially during busy periods.
Selling on ThredUp requires a strategic approach. By understanding their policies, leveraging the right strategies, and avoiding common pitfalls, you can make ThredUp work for you. However, if you’re looking for serious profits and more control over your resale business, exploring alternative platforms might be a better path to success.