ThredUp is an online resale shop for secondhand clothing, shoes and accessories, and it describes itself as one of the largest such platforms. It suits shoppers who want used brand-name pieces without digging through thrift racks, and people who want to clear out a closet without photographing and listing every item themselves.

Short answer: yes, ThredUp is a legitimate, publicly traded company and a reasonable place to buy used clothes, but its 14-day return window and $3.99-per-item restocking fee punish casual returns, and sellers should expect small payouts on most items. We reviewed ThredUp's help-center policies, its latest SEC filing and recent customer reviews.

ThredUp at a glance

Founded2009 (BBB lists a January 2009 start)
HeadquartersOakland, California
Owner/parentThredUp Inc., publicly traded on Nasdaq (TDUP)
What it sellsSecondhand apparel, shoes and accessories; also takes items from sellers through Clean Out kits
Shipping (US)Flat rates: $10.99 standard, $8.99 bundled, $25.99 expedited
ReturnsPostmarked within 14 days of delivery; $3.99 restocking fee per item; final sale items not returnable
BBB (as of November 2026)A+, accredited since 2013; 821 complaints in the past 3 years
Trustpilot (as of November 2026)1.4/5 from about 4,600 reviews

Who is ThredUp?

ThredUp has operated since 2009 (BBB lists its start as January 2009) and is headquartered in Oakland, California. It trades on Nasdaq under the ticker TDUP, so its finances are reported to the SEC every quarter. Co-founder James Reinhart is the CEO.

The business is large. In third-quarter 2026 results released on November 4, 2026, ThredUp reported revenue of $88.2 million, up 7% from a year earlier, plus a record 1.82 million active buyers and 1.89 million orders. It says it has processed more than 250 million unique secondhand items from about 60,000 brands, and it also runs branded resale shops for other retailers through its Resale-as-a-Service program.

It isn't profitable on a net basis yet. ThredUp posted a $5.5 million net loss for the quarter and forecast fourth-quarter revenue of $77 million to $79 million, roughly 2% lower than a year earlier at the midpoint.

One legal matter is open. A proposed class action filed in December 2025 in federal court in Northern California (Mobley v. ThredUp, case 25-cv-10419) alleges that ThredUp left an $8.99 "Shipping & Handling" fee out of its advertised item prices. Truth in Advertising lists the case as pending. These are allegations only, and we found no ruling or settlement.

What ThredUp sells and how prices compare

ThredUp's own inventory is secondhand apparel, shoes and accessories that sellers have sent in and ThredUp has processed, priced and listed. Because nearly every listing is a unique used item, a piece in your size can be gone the next day, and there's no restock to wait for.

Sellers don't set the prices. ThredUp's help center says its algorithms price each item based on past sales, the brand and the item's quality, and prices can drop over time. On Trustpilot, low prices and brand-name finds are the most common reasons buyers give for liking the site. Shipping is the main add-on cost, since the shipping page lists no free-shipping threshold.

How ThredUp's resale model works

Buying: inspection and condition

Items that ThredUp sells directly pass through its warehouses before they're listed. The company says each one gets a multi-point inspection meant to confirm excellent pre-loved condition and an accurate description. They're still used goods, though, and some Trustpilot reviewers report pieces that were more worn, stained or mislabeled than the listing suggested.

If something arrives not as described, ThredUp tells buyers to start a return and choose "Inaccurate Description" or "Quality Issue." Its processors review the item and can waive the restocking fee. For a refund to your card with shipping covered, it says to use the $10.99 return label and then send customer service the return number.

ThredUp is also testing Direct Listings, a beta feature in which individual sellers ship items to you themselves. Each Direct Listing checks out separately with its own shipping charge and can't be combined with regular ThredUp items. The help page doesn't say whether these get ThredUp's inspection or its standard return terms, so ask before buying.

Selling: Clean Out kits and payouts

To sell, you order a Clean Out bag or print a free shipping label for any box, then send your items in. ThredUp reviews what arrives, lists what it accepts and pays you only when something sells, as a percentage of the final price. Items from a short list of low-resale-value brands still get listed, but ThredUp says you earn on them only if they sell for $20 or more.

The service fee is $14.99 for a Standard Clean Out or $34.99 for Premium, taken out of your earnings after items sell; if your earnings don't cover it, ThredUp says you aren't billed the difference. A 30-pound bag costs $2.99 with Standard and is free with Premium, an Uber pickup for up to five Clean Outs costs $4.99, and reclaiming an unsold item costs $5.99 plus return shipping.

Payout percentages rise with the sale price. ThredUp's payouts page shows about 3% of a $5 sale, 15% of a $20 sale, 30% of a $50 sale, 60% of a $100 sale and 80% of a sale of $200 or more. Buyer discounts and promo codes lower the sale price and your share. Earnings arrive after the buyer's 14-day return window, typically 24 to 48 hours after day 15, while final sale items pay out when they ship.

Shipping and delivery

ThredUp charges flat shipping rates. According to its shipping help page, last updated in July 2025, standard shipping costs $10.99 by USPS and arrives 3 to 8 business days after the order ships. Expedited shipping costs $25.99 for 2 to 3 business days but only works when every item comes from the same warehouse; orders split between warehouses ship separately for $15.99.

Frequent shoppers can choose bundled shipping for $8.99. It opens a seven-day window to keep adding items, then ships everything in one box when the window closes, so it suits orders you're not in a hurry for.

ThredUp ships to Alaska, Hawaii, Puerto Rico, the US Virgin Islands, Guam and APO/FPO/DPO addresses with tracking, but warns that delivery there can take up to six weeks. Rates can change, so check your total at checkout.

Returns, refunds and warranty

The return window is short: returns must be postmarked within 14 days of delivery, items must be in the condition you received them, and final sale items can't be returned. Every returned item carries a $3.99 restocking fee, your original shipping charge isn't refunded, and ThredUp says promotions and discounts aren't reimbursed.

Your refund choice changes the cost. In the 48 contiguous states, choosing ThredUp shopping credit gets you a free prepaid label, and the credit can post as soon as the carrier scans the package. A refund to your original payment method means buying a paid label or covering your own postage; it's processed 3 to 5 business days after the return reaches the warehouse, and your card may take another 3 to 5 business days.

A few more rules apply. Items bought with ThredUp credit are always refunded as credit, the refund method can't be changed once a return is processed, and shoppers in Alaska, Hawaii and Puerto Rico don't get prepaid return labels. We didn't find a separate warranty for used items, so the return policy and the misdescription fee waiver are your main protections.

What customers say

ThredUp's ratings depend heavily on where you look. The BBB gives it an A+ and has accredited it since August 2013, yet it lists 821 complaints in the past three years and 227 in the past 12 months (as of November 2026). BBB's summary says the complaints cite payout amounts and sellers not getting unsold items back.

Trustpilot is harsher: 1.4/5 from about 4,600 reviews (as of November 2026), with 60% one-star and 24% five-star ratings. The most common complaints come from sellers who say sold items earned them a few cents to under a dollar, who object to reclaim and processing fees, or whose bags took weeks to process. Buyer complaints focus on items more worn than described and slow email support.

The positive reviews mostly come from buyers, who praise low prices, brand-name finds, wide selection and smooth shipping. ThredUp has claimed its Trustpilot profile and replies to every negative review, usually within 24 hours, often pointing sellers to its payout estimator or support email.

Pros and cons

Pros

  • Publicly traded company with SEC filings and 1.82 million active buyers.
  • Items ThredUp sells directly get a multi-point inspection before listing.
  • Free return labels in the 48 contiguous states when you take store credit.
  • The restocking fee can be waived when an item doesn't match its description.
  • Predictable flat-rate shipping, plus an $8.99 bundle option.
  • Sellers can ship a whole closet with a free label and let ThredUp price and list it.

Cons

  • Only 14 days to postmark a return, counted from delivery.
  • $3.99 restocking fee on every returned item, and original shipping isn't refunded.
  • $10.99 standard shipping with no published free-shipping threshold.
  • Low payouts on cheaper items: about 3% of a $5 sale and 15% of a $20 sale.
  • 1.4/5 on Trustpilot and 821 BBB complaints in three years.
  • A pending class action over how shipping fees are disclosed (allegations only).

Tips before you order from ThredUp

  1. Read each listing closely and remember these are used items. If something arrives not as described, pick "Inaccurate Description" or "Quality Issue" so the restocking fee can be waived.
  2. Avoid final sale items unless you're sure about fit, because they can't be returned.
  3. Decide quickly: a return must be postmarked within 14 days of delivery.
  4. Take store credit if you'll shop again. It comes with a free label in the lower 48 states and can post faster than a card refund.
  5. If you shop several times a week, use the $8.99 bundle instead of paying $10.99 per order.
  6. Sellers: send higher-value pieces, since payouts climb to 80% at $200 and up, and factor in the $14.99 or $34.99 fee and the $5.99 reclaim fee before you ship.

Is ThredUp legit? Our verdict

ThredUp is a legitimate place to buy secondhand clothes. It fits shoppers who are comfortable with used goods, know their sizes in the brands they buy and don't mind paying for shipping. Inspection before listing and a fee waiver for misdescribed items give buyers reasonable protection, but the 14-day window and per-item restocking fee make it a poor fit for anyone who likes to order several sizes and send most back.

Sellers should go in with realistic expectations: ThredUp trades convenience for a small share of most sales, and payouts are the top complaint on Trustpilot and a main theme in BBB's complaint summary. If you'd rather set your own prices and keep more of each sale, peer-to-peer marketplaces such as Poshmark or eBay are the usual alternatives.

Visit ThredUp

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