thredUP
Location: 2 Canal Park, 5th Floor, Cambridge, Massachusetts 02141, United States United States
Founded in: 2009
Stage: Beta (public testing)
Number of employees: 1-5
Profitable year: 2010
Short URL: vator.co/thredup

thredUP

a refresh button for your closet
Startup/business
Massachusetts, United States United States
http://www.thredup.com
About
Activities
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Company description
thredUP enables customers to extract maximum value from their closets by matching their high-quality used clothes with the preferences and changing sizes of others in a robust peer-to-peer network. With an easy-to-use interface (no bartering, no auctions, no hassle) and Netflix styled pre-paid envelopes, thredUP is the first recycler + personal shopper combination, ever.
Team
Business model
How does thredUP make money?
1) We sell the envelopes at 48% gross margins; 2) By Q1-2010, we will offer premium services so that members can get even more precise with their thredUP preferences; 3) By Q3-2010, we will sell targeted advertising based on the robust data and usage patterns we will have collected from our users.
Competitive advantage

What other people don’t seem to get…
Non-consumption in the used-clothing space is not about price, it’s about convenience. No matter how cheap it is, if you have to battle crowds and lines it’s not worth it. No matter how cheap it is, if you have to bid many times in an auction or go to the post-office, it stinks. thredUP’s model – supply driven consumption and Netflix-like pre-paid mail service – solves the problem uniquely by eliminating these barriers to consumption. When it’s just as easy to thredUP as it is to “put stuff in storage,” “spring clean”, or “closet rationalize” consumers will pay. 

Our particular competitive advantage works on two dimensions. First, thredUP is a network-effects driven business. Scale matters. Being first in a non-consuming market means we can lock-in customers with a great experience (and a trusted name) and keep out imitators who will lack sufficient scale to jump in.  Second, thredUP is not a mousetrap. The key advantages are in scale, service and price. We will be well-positioned to respond aggressively to anyone who attempts to compete with us on these dimensions.