ThredUp operates one of the world’s largest online resale platforms for apparel, shoes and accessories.
−Removed: Our mission is to inspire a new generation of consumers to think secondhand first.
+Added: Our mission is to inspire the world to think secondhand first.
We believe in a sustainable fashion future and we are proud that our business model creates a positive impact to the benefit of our buyers, sellers, clients, employees, investors and the environment.
Our custom-built operating platform consists of distributed processing infrastructure, proprietary software and systems and data science expertise.
−Removed: This platform is powering the rapidly emerging resale economy, one of the fastest growing sectors in retail, according to a GlobalData market survey conducted in February 2022.
+Added: This platform is powering the rapidly emerging resale economy, one of the fastest growing sectors in retail, according to a GlobalData market survey conducted in January 2023.
ThredUp’s proprietary operating platform is the foundation for our managed marketplace, where we have bridged online and offline technology to make the buying and selling of tens of millions of unique items easy and fun.
−Removed: Our marketplaces enable buyers to browse and purchase resale items for primarily women’s and kids’ apparel, shoes and accessories across a wide range of price points.
−Removed: Buyers love shopping value, premium and luxury brands all in one place, at up to 90% off estimated retail prices.
+Added: The marketplaces we have built enable buyers in the United States (“U.S.”) and in Europe to browse and purchase resale items for primarily apparel, shoes and accessories across a wide range of price points.
+Added: Buyers love shopping value, premium and luxury brands all in one place, at up to 90% off estimated retail price.
Sellers love ThredUp because we make it easy to clean out their closets and unlock value for themselves or for the charity of their choice while doing good for the planet.
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We take it from there and do the work to make those accepted items available for resale.
+Added: In addition to Clean Out Kits, ThredUp also sources inventory from a variety of supply channels, such as wholesale supply in Europe.
In addition to our core marketplace, some of the world’s leading brands and retailers are already taking advantage of our Resale-as-a-Service (“RaaS”) offering, which allows them to conveniently offer a scalable closet clean out service and/or resale shop to their customers.
We believe RaaS will accelerate the growth of this emerging category and form the backbone of the modern resale experience domestically and internationally.
−Removed: In 2021, we acquired Remix Global AD (“Remix”), a fashion resale company headquartered in Sofia, Bulgaria, which further expands our reach to the European customer.
−Removed: With this acquisition, we added a complementary operational infrastructure and an experienced management team to enable our expansion into Europe.
−Removed: In addition, Remix’s product assortment extends our resale offering to include men’s items and items sourced from a variety of supply channels, such as wholesale supply.
We have built a differentiated and defensible operating platform to enable resale at scale, combining:
• Distributed Processing Infrastructure.
−Removed: Our infrastructure is purpose-built for “single SKU” logistics, meaning that virtually every item processed is unique, came from or belongs to an individual seller and is individually tracked using its own stock keeping unit (“SKU”).
+Added: Our infrastructure is purpose-built for “single SKU” logistics, meaning that the vast majority of items processed are unique, came from or belong to an individual seller and is individually tracked using its own stock keeping unit (“SKU”).
As of December 31, 2023, we operated distribution centers that could collectively hold more than 12.0 million items in locations across the United States and Europe.
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We drive continuous operational efficiency through proprietary technology and ongoing automation of our infrastructure.
−Removed: Our existing United States-based distribution centers are located in Arizona, Georgia, Pennsylvania, and Texas.
+Added: Our existing United States-based processing and distribution centers are located in Arizona, Georgia, Pennsylvania, and Texas.
By locating our facilities in strategic locations across the country, we can be closer to our buyers and sellers, which allows us to reduce shipping times in transit, and lower our inbound and outbound shipping costs.
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We also leverage data to power efficient customer acquisition and lifetime engagement, and to provide a personalized shopping experience.
+Added: ThredUp’s data science portfolio leverages machine learning algorithms, predictive analytics, and other artificial intelligence technologies to identify trends, anomalies and correlations, provide alerts and initiate business processes.
We generate revenue primarily from items that are sold to buyers on our websites and mobile app and from integration and service fees charged in connection with our RaaS offerings.
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We recognize revenue from our Remix platform primarily through direct product sales.
−Removed: We anticipate that over time revenue from the Remix platform will migrate to become primarily consignment sales as we introduce and expand the Clean Out Kit model that we pioneered in the United States market.
−Removed: In mid-2021, we began structuring our RaaS offerings as sources of revenue.
−Removed: RaaS clients typically pay an upfront integration fee as well as ongoing service fees which are then recorded to consignment revenue.
+Added: We anticipate that over time revenue from the Remix platform will increasingly involve consignment sales as we have started to transition it to the Clean Out Kit model we pioneered in the United States market.
+Added: Revenue from our RaaS offerings typically includes an upfront integration fee as well as ongoing service fees which are then recorded to consignment revenue.
With RaaS, brands and retailers are leveraging our operating platform to deliver resale experiences to their customers across three main service modules:
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This suite of offerings is called “Resale 360” and enables our RaaS clients to drive incremental revenue and access new customers while promoting a circular business model.
−Removed: As of December 31, 2022, we worked with 42 RaaS clients, including GAP, Hot Topic, Madewell, Reformation, Tommy Hilfiger, Torrid, and Walmart.
+Added: As of December 31, 2023, we worked with over 50 RaaS clients, including Gap, Reformation, Madewell, Abercrombie, Cuyana and Hollister.
We have methodically scaled operating capacity and revenue, while increasing gross profit and improving our operating performance.
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Competitors offering the same or similar goods or services include:
−Removed: • secondhand marketplaces, such as eBay Inc., Mercari, Inc., Poshmark, Inc., The RealReal, Inc., Vinted and Vestiaire Collective;
+Added: • secondhand marketplaces, such as eBay, Goodwill, Mercari, Poshmark, The RealReal, Vinted and Vestiaire Collective;
• large online retailers, such as Amazon.com, Inc., Target Corporation, Kohl’s Corporation and Walmart Inc.;
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Additionally, we experience competition for consumer discretionary spending from other product and experiential categories.
−Removed: See the section titled “Risk Factors—Risks Relating To Our Business and Industry—The market in which we participate is competitive and rapidly changing, and if we do not compete effectively with established companies as well as new market entrants our business, results of operations and financial condition could be harmed.”
+Added: See the section titled “Risk Factors—Risks Relating To Our Business and Industry—The market in which we participate is competitive and rapidly changing, and if we do not compete effectively with established companies as well as new market entrants or maintain and develop strategic relationships with third parties, our business, results of operations and financial condition could be harmed.”
We compete primarily on the basis of buyer and seller experience, product quality and assortment, breadth of brand offering, convenience and price.
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We have additional registered trademarks in the United States and “THREDUP” is registered in certain other non-United States jurisdictions.
+Added: We also hold European Union trademarks for our Remix logo.
We will pursue additional trademark registrations to the extent we believe they would be beneficial and cost-effective.
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Similarly, apparel, shoes and accessories sold by us are also subject to import regulations in the United States concerning the use of wildlife products for commercial and non-commercial trade, including the United States Fish and Wildlife Service.
−Removed: We do not estimate any significant capital expenditures for environmental control matters either in the current fiscal year or in the near future.
+Added: We do not estimate any significant capital expenditures for environmental control matters either in 2023 or in the near future.
Human Capital Resources
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These Ukrainian IT specialists, who provide services on our behalf, are registered as “private entrepreneurs” with the tax authorities of Ukraine and operate as independent contractors.
−Removed: While we do not anticipate a reduction in force due to conflict in Ukraine, we anticipate that at least some of our Ukrainian IT specialists may be unable to work while the conflict is unresolved.
+Added: While we do not anticipate a reduction in force due to conflict in Ukraine, we anticipate that at least some of our Ukrainian IT specialists may be unable to work while the military conflict is unresolved.
Our human capital resources objective is to cultivate a high-performing team by recruiting, retaining, incentivizing and integrating our existing and new employees and professional contractors.
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The core objective of our compensation program is to provide a package that will attract, motivate and reward exceptional employees who must operate in a highly competitive and technologically challenging environment.
−Removed: We believe that a unique perspective is critical to solving complex problems and inspiring a new generation of consumers to think secondhand first.
+Added: We believe that a unique perspective is critical to solving complex problems and inspiring the world to think secondhand first.
Overall, as of December 31, 2023, 67% of our workforce identifies as female and 73% of our workforce identifies as minority, including 59% as Black or Latinx.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.