Thredup Processing Fees – What It Means & What To Do
Last Updated on by Bree
Are you wondering what Thredup processing fees are and what you should do about them?
This blog post will explain what Thredup processing charges mean.
And we’ll also discuss what to do about it as a reseller.
So, let’s get started and find out what Thredup processing fees are all about!
What does the Thredup processing fee mean for resellers
You can no longer get free Thredup cleanout kits to sell your clothes.
That’s what it means.
So if you want to sell your clothes on Thredup, you’d be charged a fee.
Keep reading to know the fees to sell your clothes on Thredup.
How much the processing fees cost
The Thredup standard processing fee – wait time of 11 weeks costs $14.99.
And a faster processing time of 3 weeks for $22.00.
These fees are just damn outrageous.
And you have to commit to the fee before you get a cleanout kit to send your stuff.
How to pay the processing fee?
The processing fee will be deducted from your Thredup earnings.
So I’m guessing you can’t cash out your earnings until everything in your kit has sold and Thredup has deducted the processing fees.
Or maybe they’ll take the first $14.99 you make.
Another thing you must know is that the processing charges vary with your location.
Some resellers claimed their processing fees were higher than $14.99.
So you might be seeing charges higher or lower than mine.
Please let me know how much Thredup charges you for a cleanout kit in your area.
I’m in Virginia.
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Why did Thredup introduce the processing fees?
First of all, let’s agree that Thredup is a business.
And what do businesses do?
They prioritize profits.
Below are possible reasons Thredup is charging you for a cleanout kit:
Thredup wants to make more money.
We can try to justify this Thredup processing fee as a way to control volume and whatnot.
But the truth is, Thredup wants to make more money.
If you’ve been reselling on Thredup, I’m guessing you don’t make a lot to pay the processing fees and make enough profits.
Because I don’t.
And it’s even worse that you’d likely make nothing after the processing fee is deducted from your earnings.
First of all, the payouts are already meager.
Now, with the processing fees, you’d likely make nothing.
It just doesn’t make sense.
Because Thredup still makes money from your items that don’t sell within the selling period.
So, whichever way we look at it, it boils down to profits.
Thredup wants to make more money from resellers and donors.
Thredup probably wants to prioritize high-end fashion.
Think about it.
Do you think everyone who sells high-end brands to Thredup is trying to make profits like the rest of us?
I doubt it.
Because I’ve bought excellent condition jeans that retail for $100 or more on Thredup.
Maybe the original owner wore them only a few times before selling them on Thredup.
So, do you think that kind of person is looking to sell for profit on Thredup?
Yes, some regular resellers might sell high-end clothes from their closets.
But I believe most high-end fashion items are “donated” by people just trying to declutter their closets.
I might be wrong.
But I also believe that people who spend almost $1000 on a skirt like the one above aren’t looking to resell their clothes for profit.
They’d rather donate them because they might have busy lives, be very rich, or not be interested in selling on Thredup.
And also, the processing fee is the least of their problems if they sell.
So what can Thredup sellers do about the processing fees?
1. Sell high-end brands to make more money.
If you still want to sell on Thredup for profit, your best bet is to sell designer brands.
But if you don’t wear high-end fashion, how are you supposed to sell them on Thredup?
Even if I suggested buying designer clothes from thrift stores to sell on Thredup, it still wouldn’t make sense.
Do you know why?
Because Thredup processing fees and the cost of selling would eat into your profit.
Also, Thredup might not accept all your items.
So you’d be selling at a loss.
But if you wear brands like J.crew, Zara, Banana Republic, etc., you can still make profits selling on Thredup.
And if not, what can you do?
2. Consider selling on other platforms.
If Thredup processing fees don’t make sense for your items, you can try selling on other marketplaces.
But the downside of selling on other platforms is that your inventory is stuck with you.
Unlike when you send the bulk to Thredup.
And you’d also miss out on the convenience of listing your clothes on Thredup.
I think that’s why most of us enjoy selling on Thredup.
They take the stress of taking pictures, adding descriptions, and listing off you.
But you can sell on other platforms if the Thredup processing fees don’t make sense.
And we’ll get to that shortly.
3. Donate your clothes
The third thing you can do with the newly introduced Thredup processing fees is to donate your items.
I know it’s not what you want to hear, but I’m also considering it.
Because most of the time, I don’t make much money selling my clothes on Thredup.
So, instead of paying Thredup to send a cleanout kit, I might as well donate my clothes.
You can donate your clothes to Thredup or other thrift stores.
Funny enough, I noticed on the Thredup site that they no longer have the kit donation option.
This confirms my point earlier that Thredup wants to make more money.
If not, why remove the cleanout kit donations option?
Think about it.
So, Thredup doesn’t allow you to donate a kit.
But you can sell your clothes on Thredup and pay them $14.99 from your sales.
And when you want to cash out, Thredup allows you to donate part of your earnings.
Smooth, right?
Where to sell your clothes other than Thredup?
You can sell your clothes on
- Poshmark – Selling On Poshmark in 2021 | Tips For Making Sales
- Mercari – How To Sell On Mercari: How Mercari Works For Sellers
- Depop,
- eBay,
- Facebook Marketplace, etc. – How To Sell On Facebook Marketplace | How It Works
But if you’re still looking for platforms like Thredup, you can try swap.com
Mind you, Swap also charges you to send in your boxes.
Visit swap.com to learn more about the online consignment store.
Again, the downside of selling on other platforms like Poshmark, Mercari, etc., is you’d have to:
- take pictures of your items
- add descriptions
- price your clothes,
- And ship them yourself.
But you’d make more money selling on Poshmark, Mercari, and others than Thredup.
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How does the Thredup processing fee affect buyers?
The processing fee doesn’t affect buyers as much as it does sellers.
But Thredup has increased shipping rates.
But back to my argument about profit, Thredup increased shipping costs from $8.99 to $10.99.
That’s a lot.
Before, I could justify paying $8.99 when I shopped under $79.
But I can’t pay $10.99 to ship a few items.
Thredup also increased restocking fees.
Buyers are also affected by the increased restocking fee from $2.99 to 3.99.
So, if you return an item, $3.99 will be deducted from your refund.
So what can buyers do about the shipping fee increase?
Your best bet is to spend $89 on Thredup and get free shipping.
That’s what I plan to do.
Because I enjoy shopping on Thredup more than selling there.
So, I’d ensure I have up to $90 before shopping on Thredup.
And I’d only consider shopping on Thredup when I can’t find stuff on Poshmark or Mercari.
So what can buyers do about the increased Thredup restocking fees
I can’t say much about the restocking fees because we’ll have to return items to Thredup occasionally.
And if you’ve accumulated points from shopping, they can cover your restocking charges.
If that doesn’t work, you can try selling the item.
And if you’re not interested in selling, your only option is to return the item for a fee.
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Conclusion on what to do about the Thredup processing charge
I know the Thredup processing fees would make it hard for regular people like you and me to sell on the platform.
But we can:
- Sell on other marketplaces,
- Donate our clothes to thrift stores.
- Or pay for the Thredup cleanout kit, and forego any plans to profit from selling.
That’s my thoughts on the Thredup processing charges.
What should resellers do about no free Thredup cleanout kits?
Please share with us in the comments.
If you find this post helpful, please share it.
Happy selling!
See you in the next post.
Thanks for reading.
