ThredUp and Vinted are reshaping the resale market from opposite sides of the Atlantic — one by deepening infrastructure, the other by funding what comes next.
The resale market is booming, but for brands looking to enter, the logistics remain costly and complex. Between platform fees, operations, and marketing, many are priced out before they begin. ThredUp, one of the largest online platforms for secondhand fashion, is positioning itself as the turnkey solution, eliminating branded resale fees and offering its backend tools — free of charge.
At the center of this shift is ThredUp’s reimagined Resale-as-a-Service (RaaS) model, now anchored by what the company calls a “universal recommerce layer.” This open-source infrastructure is designed to let brands operate fully customized resale shops using ThredUp’s tech stack, without upfront investment. Catalog integration, AI-powered merchandising, and discounted Clean Out Program fees are now standard offerings, helping funnel inventory and minimize overhead.
“We believe the future of retail is circular, but for branded resale to truly scale, it needs to be accessible and cost-effective,” James Reinhart, CEO of ThredUp, said in a statement. “We’ve seen that current resale solutions often fall short, burdening brands with complex operations and limited impact. ThredUp’s new approach is designed to change that. By offering our technology and operational expertise for free, we’re empowering brands to build authentic circularity into their core business models.”
ThredUp’s enhanced platform now enables brands to launch resale storefronts that mirror their aesthetic, powered by dynamic pricing tools and existing brand photography. Brands earn a revenue share on sales from ThredUp’s inventory and retain one hundred percent of revenue from secondhand items they supply directly. With upfront and monthly fees eliminated, resale becomes not just viable, but profitable.
Additional incentives include reduced usage-based fees across ThredUp’s Clean Out and cash out programs. These lower costs help maintain a steady flow of high-quality inventory while boosting customer retention through store credit conversion. Brands can also access ThredUp’s cleaning and repair network to ensure product quality at scale.
Marketing support is baked in. Brands receive prominent ad placement across ThredUp’s product pages and social channels at no added cost, reinforcing their commitment to circular fashion. The company also connects partners with vetted aftermarket players to manage unsellable garments through environmentally responsible channels, providing data to guide corporate sustainability goals.
Menswear is now included, and by year’s end, ThredUp plans to roll out a peer-to-peer resale platform integrated into its branded storefronts. The company is also working on new features to simplify product returns and offload overstock, effectively future-proofing its offering.
These upgrades come as ThredUp reports a ten percent year-over-year revenue increase, reaching $71.3 million in the most recent quarter. The company also reported a six percent increase in active buyers, now totaling 1.37 million — evidence of a growing consumer appetite for resale.
Across the Atlantic, Vinted Group is pursuing a different strategy. In late April, the Lithuania-based resale giant launched Vinted Ventures, a new investment division aimed at funding early- and growth-stage companies focused on re-commerce innovation. Vinted Ventures will invest between €500,000 and €10 million in startups from Series A to Series C, offering not only capital but access to Vinted’s expansive network of advisors.
“Through Vinted Ventures, we support ambitious founders whose products and services provide concrete solutions, and who are ready to define the next stage of how people buy, sell and value what they own,” said Milda Jasaitė, senior director of corporate development at Vinted.
The move comes on the heels of a record-breaking year for Vinted. The company reported €813.4 million in revenue for 2024, a 36 percent increase from 2023, along with a 330 percent increase in net profit. Recent expansions into Croatia, Greece, and Ireland, as well as the debut of a new electronics category, reflect Vinted’s ambitions to scale beyond fashion.
Adding to the evolving landscape of fashion resale, Phia — a newly launched app and browser extension — offers users real-time price comparisons across over 40,000 retail and secondhand websites. Co-founded by Phoebe Gates and Sophia Kianni, Phia aims to simplify online shopping by identifying overpriced items and suggesting more affordable alternatives, including secondhand options from platforms like The RealReal, Poshmark, and eBay. The app’s “Should I Buy This?” feature provides instant insights, helping consumers make more informed purchasing decisions. Phia’s approach reflects a growing trend among Gen Z shoppers who prioritize sustainability and value, seamlessly integrating resale into their shopping habits.
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