Back in 2013, we noticed a lot of online consignment sites popping up and profiled a few of the most prominent ones for a story about how to sell your clothes online. Today, six of the eight we featured have either shut down entirely or majorly repositioned. The latest to bite the dust? Threadflip.
On Tuesday, the site — which allowed its 1.5 million members to buy and sell clothes on an easy-to-use desktop and mobile platform — announced in an email to its users that it will cease all operations at midnight the night of Wednesday, Jan. 13. The email also revealed that Threadflip has partnered with Le Tote, a start-up that sends users a package containing three garments and two accessories for them to wear and send back, at which point they are sent a new package. The nature of this partnership, and whether it involved an acquisition, was not disclosed, though we have reached out to Threadflip for more information.
Online clothing resale has become a crowded, competitive space that venture capitalists seemingly can't stop pouring money into: ThredUp has raised $131 million to date, the RealReal has raised $83 million, and Poshmark and Vestiaire Collective have raised around $40 million each. As the demise of Threadflip and competitors (like Bib + Tuck) shows, it's unlikely that most of them can survive while doing the same thing. Consolidation, like Threadflip's with Le Tote and Bib + Tuck's acquisition by brick-and-mortar resale chain Crossroads Trading, could become increasingly common.