Threadflip, launched in April 2012, is a online social marketplace to buy and sell unused and pre-loved fashion items buried deep inside one’s closet. In 2013, Threadflip launched the free mobile app make clearing out one’s closet even easier. The company’s signature white glove service takes all the hassel out of selling. All that user has to do is sort out unused items that could be sent to a new and better home, Threadflip delivers a box with label for free shipping of the item(s) to the company. Professionals at Threadflip then takes care of the photography, pricing, shipping and everything else for a 20% commission fee of the sale.
According to the Bureau of Labor, average woman in the U.S. spends $3,400/year on clothing and apparel. Clothing E-commerce market was worth $41 billion in 2012 and expected to grow rapidly. By recommercing and recycling the pre-loved items from women’s closets, Threadflip is for sure after a large market with existing demand to fulfill. Since launch, Threadlflip has gained lots of attention. Statistics reflect that the number of followers of Threaflip grows at a rate of 6,000-8,000 per day. The company claims that 60% of sellers stick around to sell more items and 40% of buyers return to purchase again, a retention rate that is quite high considering the existence of a number of competitors such as eBay, 99dresses, Poshmark etc. The service is praised by its users in reviews, the website is sleekly designed and blog provides useful information and the social aspect to connect people.
The founders Manik Singh and Jeff Shiau both came out of Causes, along with a couple other engineers. The team composition focuses on service and operation to allow the business’s smooth running. The scope of personalities and expertise seem reasonably balanced based on a quick search of the key team members. The results that Threadflip has delivered further supports the fact that customers as well as early investors are satisfied with company. I think that this is a company worth following and keeping in mind for making investments!