A consignment shop is a store where people (called consignors) bring their belongings clothing, furniture, art, toys, etc. to be sold by the shop. The consignor still owns the item until it’s sold. When it sells, the consignor gets a percentage of the selling price, and the shop keeps the rest as a fee or commission. If it doesn't sell, the item is returned or sometimes donated.
In a nutshell: You provide the stuff, the shop does the selling, and the profits get split.
Consignment Shop | Thrift Store | Pawn Shop |
---|---|---|
Items sold for others, consignor keeps ownership until it sells; profits split | Items donated; the store owns everything; sales benefit a charity (usually) | Items used as collateral for cash loans; if not repaid, shop sells item to recoup loan |
Wide variety: clothing, furniture, toys, etc. | Anything donated by the community | Jewelry, electronics, tools, musical instruments, rarities |
Example 1: Consignor
Sarah has designer handbags she doesn’t use. She brings them to a local consignment shop. The owner inspects the bags, accepts 3 of them, and sets the price at $80 each. They agree Sarah will receive 50% of the sale price. The shop puts her bags on display for 60 days. After 3 weeks, one sells; Sarah is notified and gets a $40 check. The other two are still for sale, or will be returned/donated if unsold after 2 months.
Example 2: Shopper
Ben, a college student on a budget, browses a consignment shop. He finds a quality winter coat priced at $30 (original retail $90). He buys the coat, knowing he might someday consign it himself for cash back.
Example 3: Shop Owner
Kelly runs a children’s consignment shop. Every week, consignors bring in clothing and baby gear. Kelly inspects everything, tags and displays the accepted items, and tracks sales in her software. Every month, she pays her consignors and keeps her share to fund the business.
The shop and consignor agree up-front to a split, often 40–60% to you, 40–60% to the shop. Luxury goods sometimes pay more; everyday clothes may pay less.
Usually, the item is simply returned to you. Some shops will donate items that go uncollected after a set time. Read your agreement carefully for details about fees or pickups.
Most shops pay monthly, although some will pay as soon as an item sells if you request it. Always confirm before consigning!
Yes, always bring your items in clean, ironed (if possible), and in great condition. Shops rarely accept damaged or dirty items, even if they are high-end.
Most consignment shops do not charge up-front fees, but always ask especially for high-value or luxury consignment. The main “fee” is the shop’s commission after a sale.
Yes, but specialty items art, jewelry, antiques, sports gear may require a specialty consignment shop. Always check with the shop about what they accept.
Many modern consignment shops will list items online or on social media for larger exposure ask if this is offered and how online sales are handled and shipped.
“On consignment” means you keep ownership of the goods until the shop sells them, then get your agreed share of the price. If they don’t sell, the items return to you (or are otherwise handled as per the agreement).
Absolutely! Especially for high-quality, branded, or in-demand items in great condition. You’ll make more than at yard sales and less work than selling everything yourself online.
Occasional sellers usually do not owe tax, but frequent or big consignors might. Ask a tax advisor or see our Consignor Payouts and Taxes guide for more info.
Every consignment adventure is a little different. The key is to start simple, ask questions, and keep reading. This resource will grow with more real stories, checklists, and expert tips let us know what else you want to see!