ThredUp Adds AI Tools to Fashion Resale Platform

Online fashion resale platform ThredUp introduced a suite of artificial intelligence-driven shopping tools.

The new offerings include an improved search function, an enhanced image search, and the company’s new AI-powered chatbot, according to a Monday (Aug. 5) press release.

“AI presents an enormous leap forward for secondhand shopping by bringing emotion and storytelling to the millions of unique shopping journeys that happen regularly on ThredUp,” ThredUp CEO James Reinhart said in the release. “Given the breadth of our offering with millions of unique items available in our marketplace at any given time, generative AI technology is accelerating how we’re changing the way consumers shop and providing the easiest and most fun way to shop sustainably.”

The new search function lets customers find outfits using specific, natural language, such as “swimsuit for a triathlon” or “tank tops for the 4th of July,” the release said. The new image search, meanwhile, allows users to take or upload a photo or share an Instagram post to find matching or similar garments within ThredUp’s inventory.

The new chatbot lets customers provide prompts — for example, “outfit for a fall wedding” — and get back recommendations for a “head-to-toe” look, per the release.

“You can then refine your results by adjusting parameters like color, style and coverage to create a truly personalized ensemble,” the release said.

The offering comes as resellers are facing obstacles as they try to turn a profit. Data from ThredUp showed that the U.S. secondhand apparel market was valued at approximately $43 billion in 2023.

The market is projected to grow at an average rate of 11% per year through 2028. The increasing popularity of thrifting, particularly among younger consumers, has contributed to this growth.

“However, despite the market’s potential, companies are facing challenges,” PYMNTS wrote last month. “Shares of online seller ThredUp and brick-and-mortar thrift store chain Savers Value Village have both experienced declines of around 29% year to date. Luxury online resale platform The RealReal has fared slightly better, thanks in part to a debt exchange it announced in February.”

Meanwhile, PYMNTS also wrote last month about the challenge of offering customers human-like interactions with AI, which can sometimes bring about confusion or unrealistic user expectations, with customers developing emotional attachments to AI assistants.

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