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Grade D

ThredUp Terms of Service

Consignment Platform | Last reviewed: January 2026

Overview

ThredUp operates differently from peer-to-peer platforms—you send them clothes and they handle everything. Convenient, but payout rates are notoriously low, often 5-15% of resale price. They determine pricing and can reject items without return, making earnings unpredictable.

Key Terms Analyzed

Very Low Payout Rates

Sellers typically receive only 5-15% of the item's selling price. A $50 item might net you just $3-5. Payout rates vary by brand and item type.

ThredUp Controls Pricing

You have no control over how items are priced. ThredUp sets prices based on their algorithms, often lower than peer-to-peer platforms.

Item Rejection Risk

ThredUp can reject items they deem unsellable. Unless you pay extra for "Return Assurance," rejected items may be donated or recycled without compensation.

Processing Delays

Bags can take weeks or months to process. By the time seasonal items are listed, the season may have passed, reducing sale likelihood.

Credit vs Cash

ThredUp incentivizes taking store credit (higher payout rate) over cash, locking your earnings into their platform.

Positive Aspects

Zero Effort Selling

Just pack items and ship. ThredUp handles photos, listing, storage, shipping to buyers—truly passive compared to other platforms.

Prepaid Shipping Kit

Free Clean Out Kits with prepaid shipping labels make it easy to send items without upfront costs.