3 unchanged sentences
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 January 2023.
+Added: This platform is powering the rapidly emerging resale economy, one of the fastest growing sectors in retail, according to GlobalData's assessment of the secondhand market in January 2024.
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: 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: The marketplaces we have built enable buyers in the United States (“U.S.”) to browse and purchase resale items for primarily apparel, shoes and accessories across a wide range of price points.
Buyers love shopping value, premium and luxury brands all in one place, at up to 90% off estimated retail price.
−Removed: 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.
−Removed: ThredUp’s sellers order a Clean Out Kit, fill it and return it to us using our prepaid label.
+Added: Sellers enjoy 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.
+Added: ThredUp’s sellers order a Clean Out Kit, fill and return it to us using our prepaid label.
We take it from there and do the work to make those accepted items available for resale.
−Removed: 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.
−Removed: We believe RaaS will accelerate the growth of this emerging category and form the backbone of the modern resale experience domestically and internationally.
+Added: We believe RaaS will accelerate the growth of this emerging category and form the backbone of the modern resale experience.
We have built a differentiated and defensible operating platform to enable resale at scale, combining:
1 unchanged sentence
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”).
−Removed: 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.
+Added: As of December 31, 2024, we operated distribution centers that could collectively hold more than 9.0 million items.
Our operations are highly scalable, and we have the ability to process more than 100,000 unique SKUs per day across our existing distribution center footprint.
We drive continuous operational efficiency through proprietary technology and ongoing automation of our infrastructure.
−Removed: Our existing United States-based processing and distribution centers are located in Arizona, Georgia, Pennsylvania, and Texas.
+Added: Our existing 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.
−Removed: Our European-based distribution center, which services nine countries in Central and Eastern Europe, is located in Sofia, Bulgaria.
+Added: In addition, our facilities are located in geographic locations with access to a large, qualified talent pools.
• Proprietary Software and Systems.
6 unchanged sentences
We also leverage data to power efficient customer acquisition and lifetime engagement, and to provide a personalized shopping experience.
−Removed: 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.
−Removed: 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.
+Added: ThredUp’s data science portfolio leverages machine learning algorithms, predictive analytics, and other artificial intelligence “AI” technologies to identify trends, anomalies and correlations, provide alerts and initiate business processes.
+Added: ThredUp also offers AI-powered shopping tools, including improved search, where customers can use natural language prompts to obtain relevant and personalized results.
+Added: Our AI-powered image search allows shoppers to upload photos to find matching or similar items, making it easy to recreate a desired look.
+Added: We also offer Style Chat, an AI-powered chatbot, that helps customers create complete outfits based on natural language prompts that they provide.
+Added: We generate revenue primarily from items that are sold to buyers on our website and mobile app, as well as bag fees charged to sellers for processing Clean Out Kits.
Our revenue is comprised of consignment sales and direct product sales.
2 unchanged sentences
Our buyers generally pay us upfront when they purchase an item.
−Removed: We recognize revenue from our Remix platform primarily through direct product sales.
−Removed: 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.
Revenue from our RaaS offerings typically includes an upfront integration fee as well as ongoing service fees which are then recorded to consignment revenue.
2 unchanged sentences
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, 2023, we worked with over 50 RaaS clients, including Gap, Reformation, Madewell, Abercrombie, Cuyana and Hollister.
−Removed: We have methodically scaled operating capacity and revenue, while increasing gross profit and improving our operating performance.
−Removed: During the year ended December 31, 2023, our buyers placed 6.9 million Orders, up 6.2% as compared to the same period in 2022.
+Added: As of December 31, 2024, we worked with 50 RaaS clients, including Gap, Reformation, J.Crew, Madewell, Abercrombie, and the Container Store.
+Added: On November 30, 2024, we divested 91.0% of the common stock of Remix US Holdings Inc., the parent company of Remix Global EAD (“Remix”), the operating subsidiary for our European business.
+Added: As a result, we have discontinued our European operations.
+Added: Unless otherwise noted as pertaining to “discontinued operations,” all commentary in this Annual Report on Form 10-K pertains solely to our continuing US operations.
+Added: See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Recent Business Developments” for more information.
Although we have built a scaled and highly differentiated platform and managed marketplace, we face intense competition.
2 unchanged sentences
• secondhand marketplaces, such as eBay, Goodwill, Mercari, Poshmark, The RealReal, Vinted and Vestiaire Collective;
−Removed: • large online retailers, such as Amazon.com, Inc., Target Corporation, Kohl’s Corporation and Walmart Inc.;
+Added: • large online and discount retailers, such as Amazon.com, Inc., Target Corporation, Kohl’s Corporation and Walmart Inc.;
• off-price retailers, such as Burlington Stores, Inc., Ross Stores, Inc.
and The TJX Companies, Inc.;
+Added: • low-cost online fast-fashion retailers such as Shein and Temu.
Additionally, we experience competition for consumer discretionary spending from other product and experiential categories.
14 unchanged sentences
We have additional registered trademarks in the United States and “THREDUP” is registered in certain other non-United States jurisdictions.
−Removed: 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.
21 unchanged sentences
We have not experienced any work stoppages and we consider our relations with our employees to be good.
−Removed: We supplement our workforce with contractors and consultants in the United States and internationally, including Ukrainian information technology, or IT, specialists.
+Added: We supplement our workforce with contractors and consultants in the United States and internationally, including Ukrainian engineering specialists.
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.
6 unchanged sentences
We believe that a unique perspective is critical to solving complex problems and inspiring the world to think secondhand first.
−Removed: 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.
−Removed: As of December 31, 2023, 63% of our senior leadership team, which includes executives, senior vice presidents, vice presidents, senior directors, directors and general managers of operations, identifies as female and 21% of our senior leadership team identifies as minority, including 4% as Black or Latinx.
+Added: We are proud to maintain a workforce that is majority female and underrepresented minorities.
+Added: We are committed to identifying talent from a range of backgrounds and experiences.
All full-time United States based employees are eligible to participate in our employee stock purchase plan, eight weeks paid sabbatical after three years and 401k plan.
17 unchanged sentences
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.