Lessons in Process Power

* (Negative) Working Capital Dynamics: The company holds goods on consignment. Once sold, it waits 14 days before paying out to make sure it’s not returned. The payout is putting the money into someone’s ThredUp account; typically they let it sit there and let the balance build. About 15-30% of this is eventually spent on Threadup.

* RaaS: Offering resale-as-a-service for brands like Everlane and Madewell. They helps merchants monetize returns. As e-commerce grows, so will this channel.

* Gross Margin: Gross margins went from negative to >70% as the company realized what people wanted to do was clean out their closet, not get rich selling used clothes.