ThredUp operates a managed online resale marketplace for secondhand apparel, shoes, and accessories in the U.S. Buyers shop a curated selection of used clothing at discounts of up to 90% off retail across value and luxury brands. Sellers send in used clothing via a prepaid "Clean Out Kit," and ThredUp handles all processing: evaluation, photography, pricing, and listing. This managed model distinguishes ThredUp from peer-to-peer platforms where sellers handle their own items. ThredUp sells exclusively through its website and mobile app, targeting value-oriented female shoppers. ThredUp earns revenue primarily through consignment — keeping a portion of each sale price and paying out the remainder to the seller, with seller payouts declining as sale price rises. Revenue is driven by active buyer count, order frequency, average selling price, and the volume and quality of seller supply. Gross margins are high because inbound logistics costs are effectively borne by sellers via the prepaid Clean Out Kit model. Beyond its core U.S. marketplace, ThredUp operates two ancillary businesses: Resale-as-a-Service (RaaS), which provides white-label resale infrastructure to brands and retailers, and a recently launched peer-to-peer direct-listing beta. ThredUp divested its European business in late 2024 and now operates exclusively in the U.S. ThredUp's growth strategy centers on reinvesting margin into marketing and inbound processing capacity, supported by AI investments across search, personalization, and product imagery. Management targets a long-term "Rule of 40" profile, defined as 20-25% EBITDA margins alongside high-teens to 20% revenue growth.