# Virtual Closet Swaps ThredUP Uses Netflix Model to Help People Exchange Clothes By Katherinev123 | Published 2009-10-02 | Business Source: Trend Hunter, https://www.trendhunter.com/trends/thredup References: [springwise](http://springwise.com/fashion_beauty/thredup/) & [thredup](http://www.thredup.com/) Prepaid envelopes are the key behind [thredUP](https://www.trendhunter.com/trends/thredup-2)’s business concept, which follows a model like that of the virtual movie rental service [Netflix](https://www.trendhunter.com/trends/netflix-sleeping-bag). Helping users swap the clothes they don’t want for some they do, thredUP has users purchase prepaid envelopes in which they receive an item of clothing for each envelope they’ve purchased. The items they received are chosen by thredUP according to the user’s preselected preferences (brands, sizes, and styles) in their ‘[virtual closet](https://www.trendhunter.com/trends/clobber-ai)’. When the user receives their envelope(s), it also comes with an address to send one of their own items to. If they aren’t happy with the item they were sent, they can list the item on the thredUp site as one to trade. ## Trend Insights (Trend Hunter) - Score: 3.3/10 - Popularity: 31% | Activity: 61% | Freshness: 8% - Audience gender: 10% men, 90% women - Primary generations: Gen Z, Millennial, Gen X - Top markets: North America, Europe, Asia ## Categories [Trend Hunter](https://www.trendhunter.com/trends) > [Business](https://www.trendhunter.com/business) > [New Ventures](https://www.trendhunter.com/newventures) ## Key Themes ### Key Themes Behind This Trend - **Prepaid Envelope Model:** The prepaid envelope model, as seen in thredUP, can be applied to other industries for hassle-free exchanges and sharing. - **Virtual Closet:** The concept of a virtual closet, used by thredUP, can be implemented in online fashion marketplaces to personalize clothing recommendations. - **C2C Clothing Swapping:** The peer-to-peer clothing swapping model, used by thredUP, presents an opportunity for disruptive innovation in the fashion industry by encouraging sustainable and cost-effective fashion choices. ### Where This Applies - **E-commerce:** The e-commerce industry can benefit from adopting the prepaid envelope model for easy product exchanges and returns. - **Fashion:** The fashion industry can leverage the concept of a virtual closet to enhance personalized shopping experiences and increase customer satisfaction. - **Sustainable Fashion:** The sustainable fashion industry can take inspiration from thredUP's C2C clothing swapping model to promote eco-friendly and ethical consumption. ## Related on Trend Hunter - [In-Store Swap Shops](https://www.trendhunter.com/trends/primark-swap-shop.md) - [P2P Clothing Rental Platforms](https://www.trendhunter.com/trends/sizters-rent-lend-fashion.md) - [AI Thrifting Assistants](https://www.trendhunter.com/trends/thredup-2.md) - [Clothing Try-On Services](https://www.trendhunter.com/trends/rixo.md) - [Music-Inspired Fashion Ventures](https://www.trendhunter.com/trends/fashion-streaming-service.md) - [On-Demand Skiwear Rentals](https://www.trendhunter.com/trends/skiwear-rentals.md) - [Online Resale Startups](https://www.trendhunter.com/trends/online-resale-startup.md) - [Parent-to-Parent Marketplaces](https://www.trendhunter.com/trends/blossoms.md) - [Pre-Loved Clothing Platforms](https://www.trendhunter.com/trends/preowned-platform.md)