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The Best Consignment Shops2023Expertise Laurels
2023Expertise Laurels

The Best Consignment Shops

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Frequently Asked Questions

  • Introduction

    Consignment shops are retail businesses that consign items for sale on behalf of individuals or consignees. Once an item sells, the consignment shop pays the consignee a percentage of the sale proceeds. The terms of the pricing agreement between consignment shops and consignees can vary widely, with splits of 50/50, 60/40 and 40/60 being most common.

    There are benefits and drawbacks to selling items on consignment. Consignees save time by not having to list items for sale locally or on eBay, Mercari or other online platforms, and then shipping or delivering sold items to buyers. However, they generally earn less than they would if they sold their items on their own, and they have to wait longer to get their money, as most consignment shops only pay consignees once a month.
  • What’s a consignment shop?

    A consignment shop is a type of second-hand or thrift store where people can sell their items without having to be present to complete the sale. It saves people the hassle of hosting a tag or garage sale, posting the items for sale online, or donating them to Goodwill or some other organization.

  • How do consignment shops work?

    Consignees drop their items off at a consignment shop. The shopkeeper evaluates the items, determines pricing, and places the items on the sales floor. When items sell, the consignee’s account is credited and they receive payment according to the split previously agreed on with the shopkeeper.

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

    Rather than selling items that belong to a consignee and paying the person a portion of the proceeds, thrift stores typically purchase or receive donations of used goods that they then resell for a profit.

  • What is consignment basis selling?

    Consignment basis selling simply means selling goods on a consignment arrangement as detailed above. In a nutshell, goods for sale are entrusted to a consignment shop, and then the consignee and the shop share the proceeds when the items sell.

  • Is consignment a good idea?

    Selling items on consignment can be a good idea for individuals with items for sale who don't wish to go through other channels to find interested buyers. It can benefit a person who doesn't have the time or inclination to post items for sale, package them for shipping, and then deal with possible damage or unsatisfied buyers.

  • How to sell to consignment shops?

    To sell at a consignment shop, you simply take your unwanted items to a shop and allow the shopkeeper to place a value on them. After filling out a consignment agreement, you leave the items there for the shop to sell.

  • What do consignment stores buy?

    Consignment stores generally don't buy items outright. However, they do take a variety of items on consignment, such as clothing, shoes, tools, toys, furniture, antiques, and household goods. Not all consignment stores take all types of items; in fact, most specialize in just a few categories, such as clothing, shoes and accessories, or sporting goods and equipment.

  • Do consignment shops buy prom dresses?

    Most consignment shops don't buy prom dresses, but many that specialize in clothing do accept prom dresses on consignment. The seller drops the dress off at the shop, signs a consignment agreement, and gets their portion of the proceeds when the dress sells.

  • Can I sell my clothes to a consignment shop?

    While most consignment shops don' buy clothing, there are many that accept clothing on consignment. Generally, clothing should be clean and in good condition. Some shops may give preference to clothing from designer or high-end brands.

  • Do consignment shops pick up furniture?

    Some consignment shops may pick up furniture from local sellers, but not all do. The easiest way to find out if a consignment shop will pick up furniture items is to call a nearby shop and ask.

  • Do consignment shops negotiate?

    It's possible that some consignment shops may negotiate with consignees about the value of the items they're placing for sale. A shopkeeper may also be willing to negotiate about the percentage of the proceeds each party receives following a sale.

  • What should be included in a consignment contract?

    A consignment contract or agreement should contain:

    • Names and contact details of both parties
    • Description and proposed price of item(s) being consigned
    • Time frame for and percentage of possible discounts
    • Who's responsible for insuring consigned items
    • Details of any exemptions for theft or damage
    • Details of why and by whom the contract may be terminated

  • What is a fair consignment percentage?

    Although what's considered “fair” is subjective, most consignment shops offer consignees 40, 50, or 60% of the amount an item sells for. Some shops may offer more or less, and some charge a per-item or commission rate instead of a percentage.

  • How do you price consignment items?

    A general rule of thumb throughout the consignment industry is to price items at 30% or less of their original retail value. For example, a coat that originally sold for $100 may be priced from $25 to $30.

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