When the boss of a big secondhand clothing company looks at the competition and says the spending “seems wholly irrational,” people in the resale world pay attention. That is what ThredUp CEO James Reinhart said on the company’s third quarter earnings call this month, and the numbers are in ThredUp’s third quarter earnings release filed with the SEC.
The target of his remark was the money rival peer-to-peer resale apps are pouring into marketing and sales incentives. ThredUp’s own numbers, meanwhile, came in with revenue up 7%.
The $500 Million Question
Reinhart told investors that the spending by other marketplaces is on a scale the company has not seen before. “We now estimate this could be as much as $0.5 billion in the second half of this year alone, plus shipping subsidies to support GMV growth,” he said.
That is the $500 million in the headline, and it covers marketing and order subsidies. On the call he put it simply: “Marketing and order subsidies only get you so far.”
He also told analysts that some budget shoppers are drifting to Vinted and that ThredUp is seeing some share shift toward Depop. He said the company had not seen an impact on its own sellers.
Poshmark Just Slashed Shipping To 99 Cents
Shoppers can see the price war right at checkout. On November 3, Poshmark cut its standard buyer shipping from $6.49 to $0.99, with no minimum purchase.
Poshmark says it can end that offer at any time, and the company has not set an end date. For a shopper deciding where to buy a winter coat, 99 cents is hard to beat.
For a company that built its name on sorting, photographing and shipping secondhand clothes, that is a lot of competition for the same bargain hunters.
The price of shipping used to be the biggest complaint from people who shop used clothes online. When the standard rate fell from $8.27 to $6.49 after a postal deal in September 2025, shoppers noticed, and a drop to 99 cents takes the lure even further.
Revenue Up 7% And A Record 1.82 Million Buyers
ThredUp reported revenue of $88.2 million for the quarter that ended September 30, 2026, up 7% from a year earlier. Gross profit rose 6% to $69.0 million.
The company counted a record 1.82 million active buyers, up 16%, and 1.89 million orders, up 17%. Reinhart called it a record quarter for active buyers, orders and items sold.
He also said gross merchandise value grew 20%. The company still posted a net loss of $5.5 million for the quarter, with adjusted earnings before interest, taxes, depreciation and amortization of $3.5 million, or 4.0% of revenue.
Shoppers Are Paying Less Per Item
One number tells a more cautious story. Reinhart said the price paid for an item has fallen to about $18, and that it has stayed there since June.
He explained that the average price rose from about $19 to $21 between the end of 2024 and the middle of 2026. Older items that once sold for $20 after 45 to 90 days may now sell for $17 or $18, he said.
That is good for the bargain hunter and a squeeze for the seller. If you sell used clothing, expect shoppers to haggle harder.
Live Selling Brings In New Customers
ThredUp started live shows on Whatnot in late September, and Reinhart gave a glimpse of the early results. He said 75% of customers who bought from ThredUp Live on Whatnot had never purchased from ThredUp before.
He said median live-selling prices there were 52% higher than on the core marketplace for similarly aged items. In other words, people watching a live show seem willing to pay more for the thrill of the chase.
ThredUp posts its quarterly results in filings with the Securities and Exchange Commission, including its third quarter release.
What This Price War Means If You Clean Out Closets
If you are a decluttering fan, this fight is happening on your side of the table. More competition for your clothes means more places to sell and more offers to buyers.
Compare the options before you list. Look at how much each app takes in fees, who pays for shipping, and how heavy your packages are.
Sort what you own into three piles. Brand-name pieces in good shape can go to a marketplace where you set the price, while ordinary everyday clothes might be easier to send to a service that handles the listing for you.
Check how long your items will sit, too. Older items that once sold for $20 may now take longer or bring less, so a fresh price after a month can help a stale listing move.
Take clear photos in daylight, and be honest about wear. Buyers who see a flaw in the picture are less likely to send an item back.
Be realistic about what a sweater will bring. With the average price per item near $18 at a major resale site, a closet full of basics will earn pocket money rather than a paycheck.
If you shop secondhand, enjoy it while it lasts. Cheap shipping and big promotions are aimed squarely at you, and a bargain hunter who compares prices can come out ahead.
And remember that promotions come and go. Poshmark says it can change or end its 99-cent offer at any time, so check the shipping price before you click buy.
