Published on: May 24, 2020
When you start buying secondhand clothes, you quickly notice that there are different types of stores that you can visit. The common ones are thrift stores and consignment stores (or buy-sell-trade stores). But what are the differences between consignment vs. thrift stores? What should you know about these shops? And most importantly, where can you find the best bargains?
In this post, I discuss the pros and cons of consignment or resale shops, on the one hand, and thrift stores, on the other. Both kinds of shops have their advantages and disadvantages, and even as I spend more time at thrift stores than at consignment shops, I love both.
Consignment vs. thrift stores – what’s the difference?
Thrift and consignment stores are similar in that they sell secondhand clothing. Yet, their business models differ from each other. While consignment stores tend to be strictly for-profit, thrift stores are often (but not always) run by charities. Consignment stores buy their items from individuals, whereas thrift stores get their stock from people who donate their unwanted goods.
Consignment and resale stores
How do consignment stores work, then? There are two operating models. In the first one, a store accepts items for consignment. This means that they take e.g., clothes, shoes or accessories from individuals to sell at their store, and when the item sells, the consigner gets a percentage of the sale (e.g., 50 % – this often depends on the value of the sold item. The higher the value, the higher the percentage). This means that the consigner only gets paid if their item sells, and this can take a while. Many higher-end consignment stores use this model. Similarly, e.g., the popular online consignment store for designer goods, the RealReal, operates in this way.
In the second model, the store buys the goods outright. This means that the seller gets cash on the spot when they bring their items to the store, which is quite convenient. It’s the store that assumes the risk of whether an item sells or not. Due to this higher risk, the percentage that the seller gets tends to be lower – often around 30 % of the intended selling price. Some popular chains that operate using this model include e.g., Style Encore (my favorite!), Plato’s Closet, Clothes Mentor, and Buffalo Exchange.
Regardless of the model, consignment and resale stores have buyers who hand-pick the items that they think will sell well in their store. E.g., Plato’s closet is catered for younger crowds, and thus they buy pieces that are trending among the teens and twenty-somethings. Their sister chain Clothes Mentor, on the other hand, attracts more mature shoppers. The buyers at consignment stores, then, are often highly selective, and some stores only accept 25 % of the items that are offered to them. Similarly, some online stores, including the RealReal and the “higher-end” branch of ThredUp – ThredUp LUXE – only accept certain brands for consignment. The list of designers accepted by the RealReal can be found here.
Thrift stores
Thrift stores, on the other hand, are based on donations, as I mentioned above. This means that they depend on people who donate their goods. While you don’t get paid for donating, the donations to non-profit organizations are tax-deductible.
Most thrift stores are, indeed, operated by charitable organizations. In the US, these include e.g., Goodwill, Salvation Army, St. Vincent de Paul, and Volunteers of America. In the UK, organizations such as Oxfam, British Heart Foundation, Scope, and Fara have their charity shops.
That said, there are also for-profit charity shops, although these are not as common. E.g. Value Village and Savers (both managed by the same company) in the US are examples of these.
Pros of consignment and thrift stores
Both thrift and consignment stores have their pros and cons. The advantages of consignment stores over thrift stores are often related to their well-curated selections, whereas thrift stores generally beat consignment stores in prices.
Benefits of shopping at consignment stores
Hence, the biggest benefit of shopping at a consignment vs. thrift store is that the selection tends to be better at consignment stores. This is because, as I mentioned, the buyers at consignment stores are selective. This means that they only buy trendy stuff that is of good quality and in great condition. Thus, to find quality items, you don’t necessarily have to dig as much as at thrift stores.
Many consignment stores only buy items that were manufactured within the last couple of years and thus their collections are current. Moreover, as the buyers carefully inspect all the items that they buy, there are generally fewer flawed items than at thrift stores that don’t have similar quality control checks in place. As some consignment stores are picky about the brands they buy, you’re more likely to run into designer brands, too.
Consignment stores also often have Instagram accounts, which allows you to spot designer gems before they hit the sales floor. Many stores will let you call and reserve items you see on their social media, which is an added bonus.
What is good, too, is that consignment store workers are often knowledgeable of brands and know how to differentiate between an authentic and a fake designer item. Thus, the odds of accidentally buying an inauthentic item at a consignment store are lower than at a thrift store. This is not always the case, however, and you should still inspect the items you buy for authenticity. E.g., this pair of Isabel Marant pumps that I got at a consignment store turned out to be fake.
What is great about consignment stores, too, is that they often have a better return policy than thrift stores. Most consignment stores that I have visited allow you to return items that you decide you don’t want to keep. Hence, there’s less pressure, and you can carefully inspect and try on the items at home.
In general, if you’re just starting your secondhand shopping ventures, a consignment store can be a good first experience. Consignment stores are often more organized than thrift stores, and it can be easier to find what you’re looking for. While I refuse to say that thrift stores are sometimes dirty, consignment stores are often even cleaner. They also tend to be more compact in size than thrift stores, which is why they can feel less overwhelming.
Benefits of thrift stores
The main advantage that thrift stores have over consignment stores is – you guessed it – price. Let’s face it – thrift stores tend to be a lot cheaper than consignment stores. Of course, there are exceptions, particularly if you thrift in affluent areas. But in general, as thrift stores take donations and don’t pay for their goods, they can afford to sell them at a lower price point than consignment stores can.
At the same time, while consignment store buyers are knowledgeable of designer goods and have e.g., software to help them determine what to pay for the items that they buy and how to price them, thrift stores don’t mark up items as frequently. While there obviously are thrift store workers and volunteers that are well-acquainted with designer brands, this is not always the case. Moreover, many thrift stores don’t mark things up, but price all the items in the same category (e.g., dresses) uniformly. Hence, you can find great designer bargains. For instance, the Stuart Weitzman booties below that I found at a thrift store for 3.99 dollars (and sold for $175) would have been priced considerably higher at a consignment store. Nothing beats the thrill of finding something fabulous for a fantastic price. This thrill alone is good enough for a reason to visit a thrift store.
Finally, one of the great things about shopping at a thrift store is the selection and variety of goods. Yes, thrift stores might not be as well-curated and full of designer items as consignment stores are, but that’s also part of their allure. You never know what you’ll find! Unique 80s blazers with padded shoulders? You got them! How about this gem from the 70s – a Givenchy wool dress? I got it at a thrift store for less than $2. Where else would you find something similar?
The cons
What, then, are the disadvantages of consignment and thrift stores? Obviously, I think that you can never go wrong with secondhand shopping, but there are a few things that you might want to take into consideration when choosing between consignment vs. thrift stores.
Consignment stores
One of the biggest disadvantages of shopping at consignment stores is the prices. If you wander into a higher-end consignment store, you’ll quickly notice that, while they may have an abundance of designer goods, they often come with a hefty price tag. As I explained above, consignment stores buy their stuff and need to make a profit, which means that they cannot afford to sell them for very cheap. Similarly, quite often they consult with the person who sells them an item to agree on a selling price point, and they would quickly lose all their sellers if they started to sell their designer goods for a few dollars.
Similarly, as consignment store workers are often fashion professionals, they know their brands and mark up the good stuff.
Finally, I must admit that sometimes I don’t feel comfortable at higher-end consignment stores. While this is not always the case, I have found that sales assistants tend to prefer certain kinds of customers (that is, wealthy-looking). Unless I’m dressed up, I feel slightly out-of-place, which never happens to me at a thrift store.
Thrift stores
Trying to find something specific at a thrift store can be a daunting task. While I find fabulous stuff all the time, they are generally items that I wasn’t actively looking for (heck, I didn’t know I needed them until I laid my eyes on them). Thus, if you’re looking for a specific item, say a floral wedding guest dress, you might be better off at a consignment store than at a thrift shop.
You also need to have time to go through the racks at a thrift store. For each awesome item, there are dozens of not-so-great pieces. At a consignment store, the staff do the first sorting for you by only accepting items that they think will sell. While some kind of filtering process might take place at a thrift store, too, this is not as meticulous as at consignment stores. Thus, a ton of lower-end, flawed items end up on the sales floor. This is why you need to inspect your items carefully for any hidden holes and stains before heading to the checkout.
Pro tip – shop consignment store sales
There’s an additional tip that I want to share with you. My all-time favorite secondhand shopping experiences are consignment store sales. Even if you’re an avid thrift store shopper, you should give them a try. These sales combine the best of the two worlds – consignment and thrift stores. At these sales, you get consignment store selection at thrift store prices. Could there possibly be anything better?
How to find out about these sales, then? I follow my favorite consignment stores on Facebook and Instagram, where they announce their sales. But I don’t go immediately when a sale starts. Consignment stores often lower the prices e.g. by 30 % in the beginning, and the discounts get steeper when time goes by. E.g., one of my favorite consignment stores in Columbus Ohio, Style Encore, starts with a 30 % discount and gradually increases it until they hit 90 %. While I often have a FOMO, I patiently wait for the higher discounts. As soon as they announce the 90 % off sale, I dig in. You would be surprised how much good stuff they have still left at that point! Here are just a few things that I bought at one of their sales for $2-$10.
Similarly, e.g. Plato’s closet has great sales. Depending on the location, at the final stage of their sale, they often sell stuff for $1. I have scored such great deals particularly in the jeans department.
These sales generally take place when the seasons change. That is, generally in the spring and fall. Closeout sales are great opportunities, too. Again, follow the consignment stores in your area on social media to find out about these sales.
Conclusion – consignment vs. thrift stores
Whether you should shop at consignment or thrift stores is ultimately up to your preferences. If you have a lot of time but not a ton of money, give thrift stores a try. If you’re looking for something specific and have a slightly larger budget, consignment stores might be the way to go. Similarly, if you’re new to thrifting and find thrift stores intimidating, consignment stores can help you ease into secondhand shopping.
Both consignment and thrift stores have their unique pros and cons, and you might want to try them out to see which ones you like better. And nothing prevents you from shopping at both! That’s what I do.