ThredUp Joins 70 Firms Urging Tax Cuts for $393B Resale Market
ThredUp joined nearly 70 fashion firms urging the US, Canada and EU to slash VAT and sales taxes on resale, cut labor levies and fund EPR schemes as the secondhand apparel market heads to $393 billion by 2030 with 55% resale margins. The move could unlock billions by improving circular-fashion profitability.
1. Coalition Formation
ThredUp has joined nearly 70 fashion and textile companies, from mega-brands to secondhand marketplaces and industry groups, in a unified call on the US, Canada and EU for decisive policy leadership to scale circular apparel business models.
2. Tax and Funding Proposals
The coalition is demanding three key reforms: slashing VAT and sales taxes on resold apparel and repair services, reducing labor levies with tax credits for resale jobs, and expanding funding under extended producer responsibility schemes to build collection and recycling infrastructure.
3. Projected Market Impact
With the global secondhand apparel market forecast to reach $393 billion by 2030, the group estimates resale gross margins could rise to 55% and repair margins to 41%, narrowing the profitability gap with new production and unlocking billions in revenue.
4. Implications for ThredUp
These policy measures could directly improve ThredUp’s unit economics by lowering transactional and labor costs, enabling the company to scale operations, enhance margins and capture a larger share of the booming circular-fashion market.