Although frugality typically requires consumers to accept some degree of randomness and discovery, thread up uses artificial intelligence search capabilities to make second-hand shopping more relevant and accurate.
Digital Consignment and Thrift Store’s fourth quarter and full-year 2023 outlook on Monday (March 4) analyst call income As a result, CEO james reinhart We discussed how the company’s new AI-powered search tools drive conversions by improving the platform’s ability to deliver targeted results.
“Our extensive inventory selection is one of our greatest assets, but it also presents a challenge for our buyers, who purchase up to 4 million unique pre-owned items,” said Reinhart. “This new search feature greatly enhances the second-hand shopping experience in our marketplace by combining visual language and personal style.”
On the call, he said the tool allows shoppers to search for a specific item, such as a type of dress, a garment related to a specific occasion (he gave the example of a “Sunday brunch dress”) or a specific Said you can search for any of the products that match the tone. or spirit (Reinhardt’s example is “Oscar chic”).
There is a demand among shoppers, especially young people, for AI-powered convenience in retail. PYMNTS Intelligence Report “AI-enabled payments expand customer choice” found that 44% of consumers are at least somewhat interested in integrating AI technology into their shopping experience. Furthermore, that share has risen to include more than half of younger generations, with 69% of Gen Z consumers and 54% of Millennials and Bridge Millennials saying they are interested. Masu.
In addition to these search features, the company also uses generative AI to enhance its ability to get customers to buy multiple items at once. Reinhart said the technology allows customers to “create their favorite outfits that match multiple items using only text descriptions.”
“The list of costumes that can be generated from this tool is endless, limited only by the buyer’s imagination,” Reinhart said by phone. “We will continue to drive these style inspiration touchpoints throughout the product experience over the coming year.”
The company’s revenue increased as many consumers turned to second-hand purchases to survive ongoing financial hardships. ThredUp reported that revenue increased 12% year-over-year and net loss decreased from his 32% of revenue last year to 22%.
PYMNTS Intelligence Research “Consumer Inflation Sentiment Report: Consumers shop at second-hand stores as often as other retailers, from a December survey of more than 2,300 U.S. consumers, found that 43% of consumers will buy used items in 2023, and higher-income shoppers are more likely to make such purchases. was found to be unbalanced. Additionally, 19% of consumers said their purchases of second-hand goods increased during the year.
ThredUp continues to innovate and evolve its platform with AI-powered search tools and generative AI capabilities to meet the growing demand for convenience and personalization in retail.
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