"We've built processes for people and systems to scale beyond one distribution center to multiple distribution centers. We've hired an amazing team, and we're investing a lot of resources in training and process innovation to make sure that we can continue to deliver a great customer experience," Reinhart said.
Forerunner ventures principal Eurie Kim asked Reinhart if ThredUP is able to make enough profit on a per-bag basis even at the lower price points.
"We can do things at a very low cost. Based on the way that we pay sellers, based on the price of their items, which ranges anywhere from 10 percent to 80 percent, we're actually able to put those items online and sell them at a profit," Reinhart answered.
Besides traditional consignment stores, other competitors in this space include TheRealReal, a luxury fashion resale company, and Twice, a company with a similar model to ThredUP. Unlike ThredUP, though, Twice only buys and sells women's clothing.
To date, ThredUP has not been profitable and it would not disclose its projected profitability date. However, it has raised $48 million in venture capital and expects future revenue to grow 50 percent quarter over quarter with sales up three times from 2013. The company would not disclose its revenue numbers.