What is a Consignment Store?
A consignment store is a retail business that sells second-hand items on behalf of their original owners. Instead of buying stock directly, consignment shops act as intermediaries. They only earn money when an item sells, and the profit is shared between the store and the original owner.
Consignment stores are known for offering higher-quality, curated second-hand items, often including designer pieces, luxury brands and premium vintage fashion.
Consignment Store Meaning
A consignment store is a shop that sells items for the original owner and shares the selling price with them once the item is purchased.
The person supplying the item is the consignor, and the shop selling the item is the consignee.
How Consignment Stores Work
Although each store has its own process, most follow the same core steps:
Item drop-off - The owner brings items to the store for evaluation. This may include clothing, handbags, shoes, jewellery or furniture.
Quality and authenticity check - Consignment shops accept only pieces that match their standards for condition, style and value. Many also authenticate luxury goods.
Agreed sale period - If accepted, the item is displayed in the shop or listed online for a set number of days or weeks.
Sale and profit sharing - When the item sells, the store keeps a percentage and the owner receives the rest. A typical split is 40 to 60 percent, but this varies by store and item category.
Unsold items returned or donated - If the item does not sell within the agreed timeframe, it is usually returned to the owner or donated based on the store’s policy.
What Consignment Stores Sell
Consignment stores often stock higher-end or carefully curated second-hand goods. Common categories include:
designer handbags
luxury fashion
quality vintage clothing
premium shoes
jewellery and accessories
collectible pieces
high-end furniture
home decor
contemporary brands in excellent condition
The focus is usually on well-made, desirable items with a higher resale value.
Why Consignment Stores Are Selective
Consignment stores must choose items carefully because they rely on:
limited display space
higher resale prices
brand desirability
strong customer demand
maintaining a premium image
This is why many thrifted items are not accepted, even if they are in good condition. Consignment shops prioritise pieces that will sell quickly and profitably.
How Consignment Differs from Regular Thrift Stores
Although both sell second-hand items, the business models are very different.
Thrift Store
Sells donated items
Focus on affordability
Stock is unpredictable
Profits often support charities
Consignment Store
Sells items on behalf of owners
More curated and selective
Prices are higher than thrift stores but lower than retail
Sellers earn money when items sell
Consignment sits between thrifting and luxury resale, offering a middle ground for quality and price.
Pricing and Profit Sharing
Most consignment stores follow a percentage-based model.
Examples include:
40 percent to owner, 60 percent to store
50 percent split
Higher percentage for luxury goods
Lower percentage for fast-selling contemporary brands
Some stores adjust commissions based on item value. High-ticket items often earn the owner a larger share.
Online Consignment Stores
Many consignment businesses now operate fully or partly online. These platforms allow sellers to:
ship items directly
receive digital authentication
track sales through apps
reach a much wider audience
Well-known examples include online shops that specialise in designer handbags, luxury fashion, contemporary brands or vintage furniture.
Benefits of Consignment Shopping
Consignment stores appeal to second-hand and sustainable shoppers because they offer:
Quality and curation: Higher standards for condition and authenticity.
Affordable luxury: Designer and premium items at lower prices.
Sustainability: Extending the lifespan of high-quality goods reduces waste.
Unique finds: Curated collections often include rare pieces or vintage treasures.
Related Terms
Find second-hand and vintage shops, including consignment-style boutiques, near you on Ganddee