The RealReal and thredUP both make buying secondhand clothing easy. But how do these leading online consignment and resale platforms actually compare?
This in-depth guide examines the pros, cons, business models, and key differences between The RealReal and thredUP.
A Brief Comparison Table
| Category | The RealReal | thredUP |
| Business Model | Luxury Consignment | Mainstream Resale |
| Brand Focus | Designer | Everyday |
| Authentication Process | Extensive | Limited |
| Consigning Approach | Full-Service | Self-Service |
| Seller Payout | 60-70% of sale price | 20-40% of sale price |
| Volume Handled | Low | High |
| Shipping | Handled by TRR | Handled by Seller |
| Buyer Price Points | Designer Retail | Extreme Discounts |
Overview of The RealReal
The RealReal is a high-end consignment company for authenticated luxury goods including clothing, handbags, accessories, watches, and jewelry. Here are some key facts about The RealReal:
- Consignment Model – Consumers can consign designer items for 60-70% of resale price.
- Expert Authentication – Rigorous authentication process to verify authenticity.
- High-End Inventory – Focuses on prestige designers like Gucci, Rolex, Louis Vuitton.
- Brick-and-Mortar Stores – Some locations allow bring-in consigning and shopping.
- White Glove Service – Free in-home pickup offered for consigned items.
- Smooth Ecommerce – Easy online consignment and shopping on their site.
- Direct Shipping – Consigned items are shipped to buyers by The RealReal.
Overview of thredUP
ThredUP is the largest online resale/thrift platform with a wide assortment of clothing for women, men, kids. Key aspects include:
- Resale Model – Users can resell by ordering Clean Out Kits and shipping items in.
- Broad Assortment – Carries popular brands like Gap, J.Crew, Madewell across styles.
- Self-Service – Users select items, create listings, print shipping labels themselves.
- Geared Towards Volume – Caters to sellers with larger quantities of clothing to resell.
- Minimal Vetting – Some authentication but not to the extent of The RealReal.
- Lower Payouts – Sellers earn only a small percentage of resale price.
- Massive Inventory – Largest selection of secondhand clothing available.
Also Read: Comparison Between Rebag and The RealReal
Key Differences Between The RealReal And thredUP
1. High-End Vs. Mainstream:
The RealReal positions itself as a high-end consignment shop, curating luxury items and designer brands that appeal to a niche market. It attracts a clientele looking for genuine designer pieces at a fraction of their original price.
In contrast, thredUP is more comprehensive, accommodating a vast array of mainstream and everyday brands. This makes thredUP more accessible to the general public, who might be looking for everyday wear rather than exclusive luxury items.
2. Consignment Vs. Reselling:
At its core, The RealReal operates on a consignment model, where items are listed for sale, but the original owner retains ownership until the item sells. Only then does the owner receive a payout. On the other hand, thredUP functions primarily as a reseller.
Sellers send their items to thredUP, which then pays the seller upfront, taking ownership of the items regardless of when or if they sell.
3. Authentication:
Given its luxury niche, The RealReal puts a significant emphasis on authentication. Each item undergoes a rigorous inspection process to ensure it’s genuine and not counterfeit. This provides buyers with confidence in their purchases.
While thredUP also checks the quality of items, its focus isn’t as deeply rooted in verifying the authenticity of high-end brands.
4. Individual Service:
The RealReal takes a hands-on approach, managing the entire selling process for its consignors, from professional photography to listing and shipping. This full-service model offers convenience but can come with higher commission fees.
In contrast, thredUP operates more on a self-service model, where sellers pack up their items and ship them to thredUP’s processing centers.
5. Payouts:
Potential earnings differ substantially between the platforms. With The RealReal’s emphasis on luxury brands, consignors can expect to receive between 60-70% of the sale price for their items.
In comparison, thredUP offers sellers approximately 20-40% of the listing price, which, given the nature of the items being more mainstream, might be lower.
6. Volume:
thredUP encourages sellers to send in bulk, making it a favored platform for those looking to declutter their closets in one go. The RealReal, focusing on individual high-end items, attracts consignors who might be offloading fewer, more valuable pieces.
7. Shipping:
When an item sells on The RealReal, the company handles shipping directly to the buyer, ensuring a seamless transaction process.
Sellers on thredUP, however, need to send their items to thredUP’s centralized warehouse first, where the items are then processed, listed, and eventually shipped to buyers.
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Pros and Cons of The RealReal
Here are some potential upsides and downsides when buying and consigning with The RealReal:
Pros
- Luxury designers and impressive authentication
- Higher payouts from high-value consignment
- Free shipping and pickup offered
- Managed end-to-end consigning process
- Reasonable fees compared to consigning independently
Cons
- Longer processing and payout times
- Very selective on accepted brands and items
- Damage can happen when shipping valuable items
- High-end inventory limits broader appeal
- Not viable for selling large volumes quickly
Pros and Cons of thredUP
These are notable benefits and drawbacks of using thredUP:
Pros
- Massive selection across categories and brands
- Fast processing for selling bulk clothing
- 24/7 self-service for simple selling
- Affordable pricing for buyers
- Environmentally friendly by encouraging secondhand
Cons
- Lower consigner payout percentages
- Requires fronting time and money for shipping
- Limited quality control or counterfeit checks
- Not suitable for premier designer items
- Buyers may get wrong item or size accidentally
Pricing and Fees Breakdown
The RealReal and thredUP monetize resale inventory differently:
The RealReal
- Consigners earn 60-70% of item’s resale price.
- No fees for consignment but shipping costs apply if not using free pickup.
- Buyers pay market-rate prices set by The RealReal.
thredUP
- Sellers get only 20-40% of item’s resale value.
- Various fees include $7.99 Clean Out Kit, $4.99 processing per order, up to $8.99 shipping.
- Buyers pay the discounted resale price, with coupons and promos available.
Which Platform is Better Overall?
The “best” online resale platform depends on your specific needs:
- For selling high-end designer items, The RealReal is better.
- For quickly unloading large volumes of mainstream clothes, use thredUP.
- If you want the highest payouts, consign with The RealReal.
- If buyers want the cheapest deals, thredUP has better prices.
- For everyday brands across categories, thredUP has unparalleled selection.
- For authenticated luxury, The RealReal’s inventory excels.
Evaluate the type of inventory you have, brands carried, service level, fees, and consigner payouts. Optimize your buying and selling based on your closet contents and preferences.
Also Read: Comparison Between Rebag And Fashionphile
Frequently Asked Questions (FAQs)
Some popular alternatives to thredUP for buying and selling secondhand clothing include:
Poshmark, Mercari, eBay, DePop, Vinted, Tradesy. These platforms have different business models but facilitate individual reselling of used clothing online.
Selling on thredUP is easy since it’s designed for high-volume self-service consigning. But the prep work of measuring, photographing, listing, packaging, and shipping all your items can be very time-intensive. Automating these steps helps manage larger amounts of inventory.
For consigned items sold on The RealReal, the consignor receives 60-70% of the final selling price. The RealReal takes a 30-40% commission on sold items depending on the original retail value.
For clothing consigned with The RealReal, expect to earn approximately 60-70% of the resale price when sold. The percentage varies based on item type, condition, and other factors. Designer handbags get up to 70% while jewelry and watches get 60-65% typically.
Also Read: Comparison Between The RealReal And Poshmark.
The Bottom Line
The RealReal and thredUP both facilitate secondhand shopping and clothes reselling online. But their business models, brand positioning, and economics differ significantly. Decide whether you want the white-glove service of The RealReal or mass-market scale of thredUP based on the used clothes you’re looking to buy and sell. Both platforms provide money-saving and sustainable ways to refresh your wardrobe!