Online resale platform ThredUp has announced that its resale-as-a-service (RaaS) technology is now open and free for any companies to access and use, which is aimed at increasing the growth of secondhand retail circulation.
Additionally, the secondhand retailer plans to launch a peer-to-peer marketplace by the end of 2025 and expand its support to menswear.
According to ThredUp’s CEO, James Reinhart, the decision was made due to the increasing number of overstock from retailers being sold on the platform instead of secondhand apparel.
Reinhart said in an earnings call: “This is largely because brands have been unable to scale their take-back and circularity programs and are left with no choice but to fill their shops with other branded products.
“In reality they are paying software, management, and consulting fees for programs that are doing very little to build native circularity into their strategies.”
As part of the RaaS services, ThredUp will offer cleaning and repair services, free advertising support, AI tools to improve customer experience, and solutions for overstock and returns.
ThredUp made a strategic decision amid increasing challenges for fashion retailers due to economic uncertainty and tariffs, with the thrifting market expected to soar to a value of $74 billion by 2029.
Reinhart added: “We think branded resale is being held back by the lack of sophisticated technology and operations, so we’ve decided to begin open sourcing our front-end technology and back-end logistics chain to encourage brands to make a bigger impact.
“This has never been more relevant than it is today as brands navigate global supply chain disruptions.”
Fashion retailers are shifting towards more local supply chains in an effort to dodge the additional expenses created by tariffs.
The secondhand marketplace recently reported strong earnings in Q1 2025, with revenue rising by 10% to $71.3 million and gross profit going up by 9% to $56.4 million.
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