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How consignment works & 5 tips for selling on consignment

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Similar to pawnbrokers or pawn shops, consignment shops sell secondhand items on behalf of the original owner, who receives a percentage of the selling price.

Whether you’re looking for ways to expand your wardrobe on a budget or cash in on nice clothes you no longer wear, consignment stores can be a solid option:

Most consignment stores offer a broad selection of second-hand casual, business, and evening threads at much lower prices than you’d find in your local department store.

Some even let you “sell” your clothing back to the store in exchange for cash or store credit.

What is the difference between a consignment store and a thrift store?

While some people may use the terms “thrift shop” and “consignment shop” interchangeably, they are in fact very different beasts. 

Consignment shops are for-profit businesses that specialize in reselling items. Many of the most popular consignment shops specialize in reselling fashion, such as clothing, shoes, jewelry, and more.

Other consignment shops can operate in a variety of niches, such as furniture or home furnishings.

Consignment shops typically operate in one of two ways: 

  1. Either they purchase an item from a seller and then resell it themselves at a markup
  2. They accept an item for consignment and then pay the original seller a percentage of the sales price if and when the item sells.

While consignment shops are for-profit businesses, thrift shops are typically non-profit organizations run by charities. Instead of purchasing items from sellers to then resell, thrift shops are dependent on donations, which they then sell on to consumers.

Any profit made from these sales is used to fund operations of the charity, and also to support the general mission of the underlying charity. Due to this, consignment shops will typically carry higher quality or “nicer” items than thrift shops will. 

If you have an item such as old clothing that you no longer want, but don’t want to sell, either a thrift shop or consignment shop can be a good option. If you believe that your item still has value and that someone would be willing to pay you for it, such as designer clothing or handbags, then your best bet will be to approach a consignment shop first.

If the item is less valuable or a consignment shop has already turned you down, then a thrift shop will likely be willing to accept it as a donation, which will be better than the item ending up in a landfill. 

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What is the difference between a thrift store and a second hand store?

The term “second hand store” can mean a lot of different things to a lot of different people. At its most basic, it simply refers to a venue that specializes in selling items (like clothing, shoes, handbags, furniture, etc.) that have already been owned and used. This definition encompasses both thrift stores and consignment shops, which are very different types of business. 

Thrift shops are non-profit organizations that sell items they receive via donation. They do not purchase the items they sell. Any money they make by selling the donations they’ve accepted is used to fund the mission of the charity that owns the non-profit. Consignment shops, on the other hand, are for-profit businesses that purchase items from their original owners and then resell for a profit. 

This means that both thrift stores and consignment stores can be considered second-hand stores, even though they are built upon very different business models. If the second-hand store is a for-profit business, then they are likely a consignment shop; if they are a charity-run non-profit, then they are likely a thrift store. 

How does a consignment shop work?

Typically, when you sell clothes, accessories, furniture, or appliances via consignment, you take your item to the store — or send them photos of larger pieces — and the consignment shop will decide whether or not to take your item.

Once they accept, you drop off your items at the consignment store, receive a receipt, and then leave. Usually, the consignment store chooses how to display and price your item. You then collect a percentage of sales once per month.

In some cases, you are paid a fixed sum upfront for any items the consignment store accepts.

How pawnbrokers work and where to find a local pawn shop

How do I sell something on consignment?

Selling on consignment can vary in details depending on where you sell, but the gist is this:

  • The consignment store (online or in-person), accepts your items to sell
  • The store is responsible for displaying, promoting and selling your item
  • If and when the item sells, you get a share of the price paid, and the consignment store gets the rest 

If your item does not sell, or does not sell within an agreed-upon time, typically you can get it back. 

How much do consignment stores pay?

Consignment shops pay one of two ways:

  1. The consignment shop pays you a flat rate, upfront.
  2. The consignment store pays you a percentage of the sale price of your item if and when it is sold.

It is common for clothing consignment shops to pay modest up-front fees for quality items in good condition. 40-60% of what the store expects to retail the item for is a common range for consignment fees — whether you are paid up-front, or upon sale. Many consignment shops offer store credit at a higher percentage than if you accept cash.

What sells the most at consignment shops?

While payouts vary based on the brand, quality, and type of item, Kiplinger reports that upholstered and leather furniture sells best at consignment shops. 

Not sure what else you can sell? Check out this list of 33 things you can sell to make money.

How much money can you make from a consignment shop?

The answer to the question of how much cash you can make from consignment shops depends on:

  • Quality and retail value of your item.
  • Demand for your item. Is it in style? In season? Can the consignment shop resell it quickly, for a high price?
  • Percentage the consignment shop pays.
  • Limit on number of items consignment shop accepts

How to find “consignment stores near me”

First, you can use our tool below to help you find a consignment store near you. Simply provide your zip code, and it will yield Google results for consignment shops in your area.

Next, look at reviews, which should have experiences from both buyers and sellers. Online reputation can be a good indicator of what to expect at that consignment shop.

You may decide to visit a few consignment stores near you to see if you can make more money.

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National consignment stores near you

Your search may yield consignment shops that are exclusive to your city, but you may also find national consignment shops near you. Popular chains of consignment stores include:

Plato’s Closet

Plato’s Closet is a nationwide clothing consignment franchise with locations in 50 states. They buy gently used clothes and accessories for teens and young men and women. You can also choose to accept store credit for a larger sum. Pays cash. Accepts some online sales.

Find a Plato’s Closet near you

Buffalo Exchange

Similar to Plato’s Closet, Buffalo Exchange is a clothing consignment brand with locations throughout the United States. They buy your gently used men’s, women’s and children’s clothing and accessories with a premium if you choose store credit. Pays cash. 30-item limit. Accepts some online sales and drop-offs.

Search for a Buffalo Exchange in your city

Once Upon a Child

Owned by parent company Plato’s Closet, Once Upon a Child is a great place to sell your gently used children’s clothes, especially name-brand items.

Find a Once Upon a Child location

Remember, all these businesses share a desire to purchase high-quality, clean items in good condition that are currently in style. After all, if they can’t resell it, they can’t make a profit! Bring your best items!

Online consignment shops

Just like every other retail transaction, consignment shops are also going online. Buffalo Exchange is an example of a brick-and-mortar consignment clothing shop that now offers online, mail-in sales.

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What is online consignment? How do online consignment stores work?

The concept of online consignment is the same as in-person, but items are mailed in via a special mailer, assessed by the consignment company, and you are offered a fee, or your items are rejected and (maybe) returned. Online consignment typically pays via Paypal, check or bank transfer.

Thredup

ThredUp is a leading online consignment store for women’s and children’s clothing. The site pays up to 80% of its retail price, but the Internet is full of tales of very picky selection, and very very low payouts (sometimes less than $1!).

Poshmark

Poshmark is an online consignment shop, similar in many ways to ThredUp and Mercari. Sellers use the platform to list items for sale, which buyers then browse. When Poshmark launched, it was originally focused on clothing, accessories, and shoes, but the platform has since expanded to include jewelry, children’s toys, art, and home goods as well. Poshmark pays 20% commission.

According to the site, there are more than 100 million items for sale on the platform, which consists of more than 60 million community members.

Mercari

Like ThredUp and Poshmark, Mercari is an online consignment shop. The company bills itself as “The Selling App,” a place for users to list items for sale that they no longer want or use. The platform accepts most items, as long as they are capable of being shipped.

TheRealReal

TheRealReal is another online consignment shop, but this one specializes only in high-end and luxury fashion — and takes a 30-50% commission. TheRealReal reserves the right to price and discount your item at will — which of course cuts into your bottom line, but may also increase the chances of a sale. 

Crossroads Trading

Crossroads Trading is a newer clothing assignment option that give you the option to sell directly to a physical location, get store credit for Crossroads Trading purchases, drop off or send in your item. You can also choose to get paid on consignment for a higher percentage (up to 70%, vs 30% if you choose cash) in the event your item sells.

Luxury consignment 

There are likely luxury consignment shops near you as well. Ask around or check your local Yelp and Google listings. Such stores may be referred to as vintage clothing stores, antique shops, used clothing stores, or thrift shops.

Clothing consignment

In its 2022 Luxury Consignment Report, TheRealReal reports that these brands consistently appear in top 10 lists across all seller demographics: 

  • Louis Vuitton
  • Gucci
  • Prada
  • Chanel
  • Rag & Bone
  • Tory Burch

Designer handbag consignment

Reselling designer luxury and high-end handbags from brands like Louis Vuitton, Chanel, Coach, Hermes and Dior? These are quality sites that do not traffic in fake bags:

  • Rebag
  • The Luxury Closet 
  • 1st Dibs
  • Stock X 
  • TheRealReal
  • The Vestaire Collective 
  • Fashionphile 
  • Yoogi’s Closet 
  • Bag Borrow or Steal 

Furniture consignment

There are likely furniture consignment stores near you — aka vintage furniture stores, antique shops, antique malls, used furniture stores — that accept antiques, vintage furniture, household items like china, silver flatware and art. Check your local Google listings and reviews.

There are also online furniture consignment platforms such as Everything But the House, Chairish, and 1stdibs.

Learn about other ways to sell used furniture.

Jewelry consignment

Jewelry stores and antique shops both may purchase your estate and vintage jewelry — either for a flat rate or on a consignment agreement.

You can also sell via online platforms DiamondsUSA for all diamond jewelry, and CashforGoldUSA for gold, silver, and platinum jewelry, coin collections, scrap and bullion.

Get the latest gold prices and learn about selling your precious metals in today’s record-high market, or you can check out reviews of top online jewelry buyers, including CashforGoldUSA and DiamondsUSA, both of which pay out within 24 hours and have a A+ Better Business Bureau ratings.

Before you start consigning or selling jewelry, you should know what you have. These posts can help you understand what you own and how much it is worth:

Learn about the top online jewelry auction sites.

Wedding dress consignment

Local and online consignment stores may resell your wedding gown — including ThredUp, Nearly Newlywed, Borrowing Magnolia, Once Wed, and PreownedWeddingDresses.com.

Learn more in our post all about what to do with your used wedding dress.

Which consignment store pays the most?

ThredUp pays up to 80% of the sale price, but the site is very picky and reviewers complain that very high-quality, in-style luxury brands are reject (or worse, “rejected” and then posted on sites like ebay).

As such, other consignment sites like Poshmark and Mercari may be a better deal for you.

Is consignment a good idea? Are consignment shops worth it?

There are many quality, reputable consignment shops that can give you quick cash for your used items — or slow cash in the hopes of earning more for the stores that pay upon purchase.

It is a personal choice for how you want to get rid of your used valuables — but it can make sense to outsource the sale of clothes, furniture, jewelry or other valuables to a retailer who knows how to advertise, display and sell.

Ready to sell? 5 tips for selling on consignment

Selling your gently used, quality items can be a good idea if:

  1. Your item is high quality and in good condition
  2. It is an item that is in-demand in terms of the style and brand
  3. You have the time and skill to market the item either through a website like eBay, or a consignment shop near you — or are willing to relinquish control and sell through an online consignment store
  4. You are patient and do not need the money right away 
  5. You are not emotionally or financially entangled with the item and are willing to accept the item will not sell for the price you expect — or at all

For the vast majority of used clothes, jewelry, household and other items, selling directly to a thrift store, buyback site, or directly to the seller is usually a better deal because it is quick, less work, and you can easily get rid of items you do not need or want. 

Thankfully, there are quality buyback businesses, including some in your town, as well as reputable online sites. 

What is the difference between a consignment store and a thrift store?

Consignment shops are for-profit businesses which specialize in reselling items. If you believe that your item still has value and that someone would be willing to pay you for it, then your best bet will be to approach a consignment shop first.

What is the difference between a thrift store and a second hand store?

This means that both thrift stores and consignment stores can be considered second-hand stores, even though they are built upon very different business models. If the second-hand store is a for-profit business, then they are likely a consignment shop; if they are a charity-run non-profit, then they are likely a thrift store.

How does a consignment shop work?

Typically, when you sell clothes, accessories, furniture, or appliances via consignment, you take your item to the store or send them photos of larger pieces and the consignment shop will decide whether or not to take your item.

How much do consignment shops pay?

Consignment shops pay one of two ways: flat rate upfront or percentage of the sale price of your item if and when it is sold.

How do online consignment stores work?

The concept of online consignment is the same as in-person, but items are mailed in via a special mailer, assessed by the consignment company, and you are offered a fee, or your items are rejected and (maybe) returned. Online consignment typically pays via Paypal, check or bank transfer.

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