Ugh, it’s just not worth it any more.

[somany]

I hate it, but if this happens as I think it will, I am going to have to give up selling on Thred Up. I’ve known it but went ahead and ordered another bag, but now I’m not sure I will use it.

An item I had for sale for $89.99 sold today, and my payout shows it will be $45, but then I notice there is 25% off everything on the site today for Cyber Monday. Last time something sold with a discount, the payout was corrected later. If that happens on this, my payout will change to $27. The lack of control we have over the price sucks. It works out that of the $22.50 discount the buyer gets, I absorb $18 of it.

I hate, hate, hate that my easy way of selling but still making some money is really no longer viable.

[Deleted]

Yeah changing the discount to be on our end sucks. Especially if The discount it pushes you to the lower payout bracket. They used to absorb it themselves. Which was fair. They are offering the discount to drum up business. They should eat it!

[chapeaunoir]

Since I don't have luxe stuff and their payout is bad, I've been reversing the process - their prices are lower than our thrift/consignment prices and I've been ordering some items to flip in my stores. Haven't done that lately, though, as I've been traveling more and changed the way I do things, anyway.

[somany]

OK, I just got an email telling me an item sold for $89.99 and my payout is $28.80. Doing the math, regardless of whether it was Luxe or not, my payout should have been $45. The buyer received an $18 discount, and my commission was reduced by $16.20. Thredup only took a $1.80 hit. I sent an email to their support department. I am done unless they make a change.

ETA, does anyone know how TheRealReal does it?  Do they offer 20% discounts regularly like Thredup does?

ETA2, if you use Thredup, please contact them regarding this when it happens to you.  Would like to raise their awareness of it in hopes of it changing.

[somany]

So I did a spreadsheet to compare what amount of the 20% discount we are responsible for versus how much Thredup is responsible for.  For every item sold over $100, the amount that the seller's payout is reduced is more than Thredup's portion of it.  (I used standard rates, not Luxe.)  In some cases, the seller's payout is reduced by MORE THAN the 20% discount the buyer received.  Some examples:

Price            109.99    149.99       209.99

Payout %          0.6          0.6            0.7

Payout $        65.99      89.99       146.99

Disc Price       87.99    119.99       167.99

Payout %          0.5         0.6             0.6

Payout $         44.00     71.99        100.79

Buyer $ Disc   -22.00    -30.00        -42.00

Seller Portion -21.99    -18.00        -46.2

TU Portion       -0.01    -12.00          4.2

[jellybeanscloset412]

Oh boy you're not kidding. I sent in a box and I think I would have done much much better taking it to Plato's closet or somewhere like that.
ThredUp put stuff on consignment for 23.00 total! Or an immediate payout of 8.00!!!!
Now it's not the best stuff, Old Navy, Jones New York, but it's all in great condition. I should have just donated it to my local food bank.

[Deleted]

I wish they would just make the payouts more fair. I think they pay TOO much on the 150-200+ items, and not NEARLY enough on up to 50.00. I wish they would make it a flat 50% or whatever across the board. They would make way more money on the expensive stuff and sellers of regular things wouldn't feel like they were taken to the cleaners! I mean if they pay 90% of a 300.00 item that is Luxe, they are only making 30.00. BUT, a sellers sending in a 75.00 item, thredup makes 37.50. So, thredup makes MORE on a 75.00 item than a 300.00 item! What kind of logic is that? On a 100.00 item, thredup makes 40.00. I just don't get it. But if someone sends in a 15.00 item, they get paid a measly .75. Which makes them obviously upset. Who wouldn't be?!

[somany]

Still, they are bombarded with the $15 items so to raise the payout on them means they’d get even more sent in. Since getting them posted for sale is labor intensive, it would mean adding staff or getting behind. I just don’t get the mindset of pushing the discounted prices. Once their Cyber Monday 25% promo went away, the home page is hyping NWT items starting at $6. They are conditioning their buyers to expect low prices. My stuff either sells right away after it gets listed or when there is a discount.

I reclaimed my remaining items. A few of them needed reclaimed in the next few days anyway, but I wasn’t willing to take the chance the payout would be reduced so much. Most of it is winter stuff so I’ll get it to my local consignment and hope for the best. They’ve started selling on-line, although they are rank amateurs, but if they are getting the prices they are posting them for, a couple of my items are high end enough to do well hopefully. If something doesn’t sell in 90 days, it goes to the 50% off area and then sometimes they have their 75% off the clearance items. I don’t like that I can’t control that part or the setting of the price at the beginning.

[jellybeanscloset412]

I agree with both you. There are alot of options. I guess I just like the convenience but donating is also convenient.

I sent some stuff to the real real. They took all of it except 3 things. I won't make nearly what I would selling them myself on Ebay but more than a Clothes Mentor. One sold already so I hope it works.

[chapeaunoir]

For me I have to factor in taxes - we badly need tax breaks because we're dual income, no debt and precious few deductions (no medical bills, interest, etc.) - a couple of times the only thing that kept us from going into a much higher tax bracket was the fact that I turn over my inventory once a year and what I don't sell in another venue, I just donate. Since selling prices are high here, the donation deduction is commensurately higher (even if we manage to scrape into a lower tax bracket). Being on the edge of a tax bracket is kind of a pain.