I still have the screenshot of my first "Clean Out Kit" payout from 2018 saved on my phone. It serves as a reminder and a warning. I had sent in a massive polka-dot bag stuffed with what I thought was gold: J.Crew cardigans, a pair of hardly worn Lucky Brand jeans, and a Kate Spade wallet. I waited six weeks for the processing email. When it finally arrived, my total payout was $12.45. I was insulted. I was confused. I felt like I had been robbed.
But here is the thing: I kept using them. Why? Because my hallway closet was overflowing, and I didn't have the time to photograph forty individual items. Over the last eight years, I have sent in over 50 kits and sold thousands of dollars worth of clothing through the ThredUp consignment system. I have learned that the platform isn't a scam, but it is a machine. And like any machine, it only gives you what you want if you know exactly which buttons to push. In 2026, the ThredUp consignment shop landscape has shifted dramatically, moving away from low-tier mall brands toward a more curated "resale-as-a-service" model. If you go in blind, you will lose money. If you go in with a strategy, you can clear your clutter without losing your mind.
How Does ThredUp Consignment Work in 2026?
When you search how does thredup consignment work, the official answer is simple, but the reality is nuanced. The core promise is "set it and forget it."
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Request a Kit: You go to the website or app and request a Clean Out Kit.
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Fill It Up: You stuff the bag with second hand clothes online buyers might want.
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Ship It: You drop it at FedEx or USPS (the label is prepaid).
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Wait: They process it, photograph it, list it, and when it sells, you get a cut.
Here's where it gets interesting... In 2026, ThredUp has become much stricter about what they accept. Years ago, they would take almost anything. Now, with warehouse costs rising, they reject a significant percentage of inventory.
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The "Processing Fee": Standard kits now often come with a fee deducted from your earnings.
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The "Partner Kits": This is the hack. If you get a "Partner Kit" (e.g., collaborating with Gap or Reformation), the processing is often faster, and you get paid in a gift card with a bonus percentage (sometimes 15% extra).
My Strategy: I never get a cash payout anymore. I always choose the Partner Kit for a brand I actually shop at. If I send my clothes in a "Reformation x ThredUp" kit, I get Reformation credit. It feels like a 1:1 trade rather than a loss.
The Economics of a ThredUp Consignment Shop
Let’s talk about the money. This is where expectations collide with reality. ThredUp is not buying your clothes. They are consigning them. This means you get paid when the item sells, not when they accept it. (Note: They used to have an "Upfront Payout" model, but that is largely extinct for standard users in 2026).
The Payout Structure:
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Items under $20: You might earn 3% to 15%. (Yes, pennies).
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Items $20 - $50: You earn roughly 15% to 30%.
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Items $100 - $200: You earn 60% to 80%.
Specific Anecdote: Last year (2025), I sent in a pair of Tory Burch flats. They sold for $78. I received a payout of $34.50. In the same bag, I sent a pristine Old Navy dress. It sold for $18. I received $0.95. The labor cost for ThredUp to photograph a $100 shoe is the same as a $10 dress. Therefore, they take a massive chunk of the cheap stuff to cover their overhead.
How Fast ThredUp Process Cloth for Consignment?
The most common complaint is speed. If you are wondering how fast thredup process cloth for consignment, the answer is: slowly.
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Standard Processing: Can take anywhere from 3 to 8 weeks depending on the season and warehouse backlog.
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Expedited Processing: You can pay a fee (usually around $16) to have your bag processed in 1 week.
Honest Failure: I once paid for expedited processing on a bag of winter coats in April. I thought, "I want these sold now." They processed them fast, but because it was spring, nobody bought the coats. They sat for their 60-day consignment window, expired, and I made $0. I actually lost money because of the expedited fee.
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Lesson: Only pay for speed if the season is right and the items are high-value.
What Actually Sells in a ThredUp Consignment Store?
The thredup consignment shop 2026 algorithm favors specific categories. They have millions of items. To stand out, your item needs to be something people search for.
The Winners:
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Activewear: Lululemon, Alo Yoga, Vuori. These fly off the virtual shelves.
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Mid-Tier luxury: Coach, Kate Spade, Tory Burch, Michael Kors.
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Plus Size: Torrid and Lane Bryant hold value surprisingly well because the supply is lower than standard sizing.
The Losers:
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Fast Fashion: Shein, Forever 21, H&M. ThredUp often rejects these outright or lists them for $5, netting you nothing.
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Basics: Plain black tank tops. There are 50,000 of them on the site. Yours won't be seen.
I use Closo Demand Signals to check general resale trends before I pack my bag. If Closo tells me that "wide leg linen pants" are trending down, I don't send them to ThredUp where they will expire unsold. I donate them instead.
How to Get Returned ThredUp Consignment (The Insurance Policy)
This is the most critical checkbox on the entire form. When you order a kit, you will be asked: "Return Assurance?"
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Yes ($10.99 fee): If they don't accept your items, or if they don't sell, they mail them back to you.
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No (Free): If they don't accept your items, they become property of ThredUp. They are recycled, sold by the pound in "Rescue Boxes," or donated.
Parenthetical Aside: (I learned this the hard way when I sent a vintage silk scarf that I was "on the fence" about. I didn't pay for Return Assurance. They rejected it—probably because it didn't have a size tag—and I never saw it again. It still haunts me.)
My Rule: If the bag contains anything I would be sad to lose, I pay the $10.99. If it is just a "purge" bag of stuff I never want to see again, I skip it.
ThredUp vs. The RealReal vs. Poshmark
When looking at online resale stores, you have to pick your lane.
1. The RealReal:
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Best For: True luxury (Gucci, Prada, high-end contemporary).
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Consignment Split: Higher than ThredUp for luxury, but they are very strict on condition.
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Verdict: Do not send Gucci to ThredUp. Send it to The RealReal or sell it yourself.
2. Poshmark / Mercari (DIY):
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Best For: Control. You set the price. You keep 80% (Poshmark) or roughly 85-90% (Mercari/eBay).
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The Work: You do the photos and shipping.
3. ThredUp:
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Best For: Volume. Mid-tier mall brands (J. Crew, Banana Republic, Madewell) that aren't worth the time to photograph individually.
Opinion: I use a hybrid model. I cherry-pick the top 10% of my items to sell on Poshmark. The remaining 90% goes to ThredUp. However, listing on multiple platforms is a pain. I use Closo 100% Free Crosslister to manage the items I keep. If I decide to sell that J.Crew blazer myself, I list it on Poshmark and use Closo to blast it to eBay and Mercari instantly. This ensures I get the maximum price for my "A-Grade" inventory, while ThredUp handles the "B-Grade" stuff.
The Secret "Sourcing" Strategy
Here is a twist: ThredUp is often better for buying inventory than selling it. Many resellers use thredup online consignment as a supplier. Because ThredUp processes millions of items, they make mistakes. They often mislabel brands or price things too low.
The "Rescue Box" Gamble: ThredUp sells boxes of "reject" items to resellers.
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DIY Designer Box: You might get 5 items that need minor repairs for $100.
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The Flip: I once bought a "Designer Rescue Box." It contained a distinct Diane von Furstenberg wrap dress with a small hole in the seam. I fixed it in 5 minutes and sold it on eBay for $85.
How ThredUp Handles Pricing (And How to Change It)
One of the most frustrating parts of thredup consignment is seeing your $200 jacket listed for $40. Their algorithm prices for speed, not profit. But you have control. In 2026, ThredUp allows you to edit the price of your items within a certain window.
The Workflow:
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Get the email: "Your items are live!"
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Immediately log in.
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Check the prices.
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Raise them.
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Why: ThredUp runs constant sales (30%, 40%, 50% off). If your item is priced at $40, and they run a 40% off sale, it sells for $24. Your payout on $24 is practically zero.
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Strategy: I usually bump my prices up by 30-50%. This creates a buffer so that when the inevitable coupon code hits, I still get a decent payout.
Is ThredUp Consignment Scammy?
People search " is thredup consignment a scam" constantly. No, it is not a scam. It is a business with very high overhead. They have to pay for the shipping label, the warehouse space, the photographers, the listers, and the customer service. They take a huge cut because they do huge work.
Honest Limitation: The "scam" feeling comes from a lack of transparency regarding rejected items. You send 20 items. They accept 8. You assume the other 12 were sold for profit and you got stiffed. In reality, they were likely recycled. But because you can't see the rejection reason, it feels suspicious.
Alternative Resale Websites for Specific Items
If ThredUp isn't the right fit, where else should you go?
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Menswear: ThredUp doesn't do men's clothes well. Use Grailed or eBay.
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Kids Clothes: ThredUp is actually great for this, but Kidizen offers a more community-focused experience where you keep more profit.
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Gear/Outdoor: Use Geartrade or REI Re/Supply.
I use Closo to automate my listings across these specialized platforms – saves me about 3 hours weekly of trying to remember which site is best for hiking boots versus high heels.
People always ask me...
Does ThredUp take everything?
No. In 2026, their acceptance rate is tighter than ever. They strictly reject items with pilling, stains, fading, or missing labels. They also deprioritize brands that have low resale value (like Old Navy or Target) unless they are New With Tags. Expect about 40-50% of an average "clean out bag" to be rejected.
How do I get my money from ThredUp?
Once an item sells, the funds sit in a "pending" state for 14 days (the return window). After that, the cash moves to your available balance. You can cash out via PayPal, Stripe (Direct Deposit), or use the funds as shopping credit on the site.Using it as credit often avoids the small transfer fees.
Conclusion
Is the thredup consignment store model right for you? It comes down to the value of your time.
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If you have a pile of clothes and you value your time at $0/hour, list them yourself on Poshmark. You will make maximum money.
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If you are a busy parent or professional and you value your time at $50/hour, ThredUp is a godsend. You shove the clothes in a bag, and even if you only make $20, that is $20 you got for doing five minutes of work.
Just manage your expectations. Treat it as a donation with a potential tip, not a get-rich-quick scheme. And for the items that truly matter—the designer bags, the leather jackets, the vintage gems—keep them. Use Closo to list those high-ticket items yourself, ensuring that when they sell, the profit lands in your pocket, not a corporation's.
Start cross-listing with Closo today—because some things are too valuable to leave to an algorithm.
