Resale is one of the hottest sectors of retail right now, but despite rampant consumer demand and brand uptake, resale platform operators are struggling to make ends meet. This dilemma was on display as two of the biggest managed resale marketplaces, ThredUp and The RealReal, reported Q1 2023 earnings on May 9.
Both platforms have zeroed in on profitability as their primary focus in the coming year, with ThredUp confirming its expectation that it will reach adjusted EBITDA break-even by the end of 2023, and The RealReal reiterating its own prediction that it will reach profitability by 2024 .
