As thredUP has grown, we’ve learned more about the costs to continue delivering great value to our customers. 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.
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 you send us 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 or a thredUP Visa Prepaid Card.
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.
To learn more about out cash out policy, click here.
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