Cashout Timing Update – What this means for you
As thredUP has grown (and we’ve grown a lot!), we’ve learned more about the costs to continue delivering great value to our customers. Like most resale shops we absorb a cost in acquiring inventory, a cost to process that inventory, and then we make revenue on re-selling that inventory. The nature of this timing is that we have to spend a lot of money upfront (item costs + labor) in order to make the wide selection of products we have available. With more than 100,000 individual products available at any time, this is a big operation. In traditional retail terms this is called “inventory risk.” That is to say, we take on the risk by buying things we can’t sell for potentially a long time. We are exposed to this risk just like any other retailer, but many retailers have payments terms such that they don’t pay for inventory until after they’ve sold it.
In order to maintain a wide selection of items and keep prices consistently affordable, we need to make a few changes to how cash is paid out for items you’ve sent us. Going forward, you still earn cash for every item we can resell in our Shop and that money is immediately available to be used to purchase items on thredUP. The change is that we are putting a 14-day delay in place for when you can cash that money out via PayPal. This delay also applies for money you’d like to contribute to a thredUP Group.
For most of you, this will have no impact on your thredUP experience. You will keep sending in quality bags, earning money and using it to shop on thredUP. However, we realize this will affect some of you, who send in clothing and immediately cash out, and we’re sorry this change negatively impacts you. We’ve looked at a number of available options, but rather than moving to something like a pure consignment model, where payment isn’t made until items sell, we think the “delayed cashout” is the right alternative at this time.
This new policy will go into effect for bags ordered after 11:59PM on February 19th. If you’ve ordered a bag or placed an order that comes with a complimentary bag before that date, you will still be afforded the immediate cashout options per the original terms of service.
If you have questions, we’d be happy to answer them in the comments below or you can send us an email at firstname.lastname@example.org.
Thank you for your continued support as we keep working to build a quality buying and selling experience for each of you.