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Two former Netflix executives join thredUP
Jul '12

For the past four months thredUP has been quietly enhancing its robust online kids clothing resale platform. Today, thredUP is announcing some impressive growth numbers and the additions of two former senior Netflix executives.

thredUP’s “re-commerce” model brings the entire children’s consignment experience online, allowing families to refresh kids’ wardrobes from the comfort of their own homes. Customers ship their outgrown clothing to thredUP, and then shop online for gently used kids clothing that fits. The magic at thredUP is behind the scenes. The company has developed proprietary technology to automate the clothing evaluation, itemization, and photography process.

By converting one family's hand-me-downs into quality clothing for another family to buy, thredUP currently puts more than 2,500 new items online every day. The company expects to increase this to more than 10,000 per day by year-end and drive daily inventory turns to 5%, which is more than 6x the pace of traditional retail.

“Secondhand as an industry falls short when it comes to both convenience and selection,” said James Reinhart, CEO and co-founder at thredUP. “Our goal is to provide tremendous variety online, a la Netflix and Amazon, and a solid operations foundation to merchandise a huge volume of used clothing.”

To meet the unique challenges of managing a business that offers a vast selection and relies on high inventory turns, thredUP brings on two former Netflix executives.

John Voris will lead the development of this proprietary operations engine as Chief Operations Officer. Voris was formerly Vice President of Operations Engineering at Netflix after more than a decade of automation and process engineering at a number of companies including Shutterfly and Cisco Systems. In addition, Andy Rendich, former Chief Service and Operations Officer at Netflix, has joined thredUP’s board.

“John and Andy are incredible assets to the thredUP team. These guys get what it takes to build a world-class operations infrastructure on a national scale, because they’ve done it. I couldn’t be more excited to have them on our side,” remarked Reinhart.

“thredUP aims to fuse two rapidly growing industries, e-commerce and resale, unlike any other player,” said Voris. “I was attracted to the challenge of disrupting an antiquated market, developing unique automation processes to sustain massive growth, and working on a brand which I believe has the potential to become a household name.”

thredUP is already experiencing solid progress. Since March, the company has received and processed 300,000 pieces of clothing, and is selling more than 1,000 items per day. On average, families are earning $20 - $40 per bag of outgrown clothing they recycle through thredUP, and shoppers are saving up to 80% on brand name children’s clothing like Gymboree, Tea Collection and Ralph Lauren. The combination of low prices, high quality clothes and an extensive variety of favorite brands has resulted in tremendous brand loyalty.

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Courtesy: Raymond

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