Gap and ThredUp partner up for Resale-as-a-Service platform | Knowledge Hub | Circle Economy Foundation
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Business case
Gap and ThredUp partner up for Resale-as-a-Service platform
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Gap Inc. has become the largest distribution partner for fashion resale platform ThredUp. The retail company will join ThredUp's Resale-as-a-Service program (RAAS), which allows retailers to offer consumers clothing resale options.

Problem

The rapid purchase-to-discard ratio of fast fashion and piling up of clothing in landfills, often made from synthetic materials which do not decompose easily. When consumers throw away clothing in the garbage, not only does it waste money and resources, but it can take 200+ years for the materials to decompose in a landfill. During the decomposition process, textiles generate greenhouse methane gas and leach toxic chemicals and dyes into the groundwater and our soil. There is also the unmet potential of clothing which could be resold, and its lifetime extended- as opposed to manufacturing new clothing which requires more energy and water use, and is associated with more carbon emissions. Finally, there are lack of incentives for people to responsibly pass on/resell their unwanted clothing due to the associated costs- be that time or monetary (e.g. shipping).

Solution

This partnership addresses these problems through providing an easy way to redirect unwanted clothing and thus divert it from landfills. It also provides a second-hand marketplace thus encouraging buying second hand and diverting ‘new new’ purchases, thus hopefully slowing down resource depletion. 

Additional information

Starting in 2020, ThredUp's Clean Out bags or labels will be available to customers in selectGap, Banana Republic, Athleta and Janie and Jack stores in the U.S., allowing these shoppers a convenient way to send in unwanted clothing for resale.

Consumers can also turn in their secondhand clothing in exchange for credit that can be redeemed at Gap, Banana Republic, Athleta or Janie and Jack. ThredUp sellers who redeem their credits at a Gap Inc. brand will receive an additional 15 percent payout bonus.

Relevant links
Organisations
thredUP
thredUP
GAP Inc
Location
Key elements of the circular economy
Impacts
Industries
WCTD Themes
Tags

collaboration

resale

own brand

fast fashion initiative

resale alternative

resale as a service