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ThredUp aims to solve one of the timeless challenges of thrift shopping: finding the perfect ‘fit (and fit).
New AI-powered tools rolling out over the next three days allow shoppers to upload an image either directly from Instagram or their device. Using tech from OpenAI, the platform then searches its inventory of 4 million items for similar pieces, suggesting secondhand lookalikes to match the original image.
Thrifters can also use the new Style Chat chatbot for suggestions based on the occasion, aesthetic, weather or style, and ask for adjustments based on the results until it’s right.
ThredUp has been using AI-powered search for years. Still, the new tools represent a significant step forward in the user experience by using language models that can more accurately respond to queries, explained James Reinhart, co-founder and CEO of ThredUp.
“What has changed rapidly over the last six months is that we now have built a whole suite of tools that can do more for the customer from a styling and merchandising perspective,” he said.
As an online thrift store, ThredUp relies on people sending in used items through its Clean Out Kits, which are then resold on the platform. Sellers get some money back, and ThredUp takes a percentage. Initially free, it began charging a processing fee of $14.99 for each Clean Out Kit last year as it focused on making a profit. Items that can’t be resold are sent to The Azek Company, which turns textile waste into decking and other outdoor living products.
In addition to its main resale business, ThredUp also works with brands like Madewell, American Eagle, Reformation and J. Crew to offer “resale-as-a-service.” Leaning on ThredUp to handle the logistics, the service allows apparel companies to generate added revenue by selling their products a second, third or fourth time. It also fosters goodwill with consumers looking for signals that brands are making environmentally conscious business decisions.