Who doesn’t love great deals on premium and designer labels? With the rise of secondhand shopping, more consumers are turning to high-end resale clothing stores to score bargains on the latest runway styles. They’re also discovering ways to recycle their own pre-loved clothes, shoes, and accessories through resale and consignment.
Whether you’re looking to earn some extra cash or build your own used clothing business, understanding the differences between consignment and resale can help you make the best choice for your wallet.

Differences between Consignment and Resale Stores

The main difference between consignment and resale stores involves acquiring inventory. Resale stores offer to purchase gently used items, giving the seller cash upfront for their pre-loved clothes, shoes, and accessories. In some cases, the store may also offer store credit as payment, instead of cash.

Meanwhile, consignment stores attempt to sell pieces on your behalf. After a consignment store successfully sells your items, you’ll receive a percentage of the sale price. Depending on the store’s terms, if the item doesn’t sell, the consignor can pick it up and keep it. Many clothing consignment franchises also arrange to donate unsold items on behalf of the consignor.

Similarities between Consignment and Resale Stores

Still, deciding whether to sell your gently used items at a consignment or resale store? Both resale and consignment shops tend to be fashion-forward, focusing on purchasing current, up-to-date clothes, shoes, and accessories.

For example, at The Closest Trading Company, we focus on designer and premium brands that you might find at luxury boutiques and high-end department stores. As a consignment AND resale clothing franchise, we purchase items that are in like-new condition so we can offer a selection of high-quality pieces that seamlessly fit into any modern wardrobe.

To maximize your profit, consider that many high-end resale and consignment stores won’t accept vintage styles, off-season pieces, or discount store brands. If you’re attempting to sell off-season pieces, consider waiting until they’re in-season. In addition, if your items show signs of wear, donating them to a local charity may be your best bet.

Resale and Consignment at The Closet Trading Company

At The Closet Trading Company, our designer boutique franchise offers a unique business model, with both resale and consignment options. If you’re interested in resale, our buyers will look through your items and select the ones that will sell the best, depending on the style, season, and condition. Then, our buyers will calculate the “Estimated Resale Value” (ERV) to determine approximately what the items will sell for and discuss your payment options.

We offer 50% in-store credit directly to your account to be used immediately or for future purchases. If you prefer upfront payment, we also offer 30% in cash (or a check if the return is over $50) upfront.

Meanwhile, consignment (our most popular option) offers the highest return on gently loved items. Our consignment process is pretty simple: we add the consigned items to your account. Once your items sell, your payment instantly becomes available to pick up or use toward future purchases. On consignment, you can expect to make as much as 85% commission on your items, depending on the price point.

Join the Designer Resale Movement

Buying and selling pre-loved clothing is so much more than a trend—it’s a movement. Ultimately, investing in a designer resale store can help you promote sustainability in your community by guiding savvy shoppers and sellers in a more eco-conscious direction.

Ready to build a business that you can take pride in? Contact us today to learn more about our designer boutique franchise opportunities.

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Owning your own upscale boutique is a fun and rewarding experience, TCTC franchise can get you there.

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When you start shopping for pre-loved fashion, you will notice that there are basically two different types of secondhand stores– thrift stores and consignment stores—which offer countless options for every style and budget.

Whether you’re committed to sustainability or searching for the best pre-loved finds, understanding the differences between the two can help you find the right pieces for your wardrobe. Here’s what you need to know—and where you can find the best deals on your favorite brands.

What is a thrift store?

Thrift stores receive most of their inventory from donations. Although you won’t get paid for donating unwanted clothes, shoes, and accessories, donating to a non-profit organization can help you qualify for tax deductions. In the United States, most thrift stores are operated by charitable organizations, such as Goodwill and Salvation Army. However, there are some for-profit thrift stores.

Because they usually rely on donations from the local community, you never know what you’ll find at your local shop. While some garments at thrift stores are damaged, worn, or out of style, there’s always a chance that you’ll score budget-friendly, timeless pieces that become staples in your closet.

What is a consignment store?

Similar to thrift stores, consignment stores also sell secondhand clothing. However, consignment stores have very different business models– they buy high-quality, pre-loved items from individuals.

If you love brand-name shopping, designer consignment stores provide a sustainable, affordable way to shop for your favorite premium brands. Many consignment stores focus on in-season, on-trend clothing, making it easy to find affordable pieces for your closet. While some designer boutiques have items that are used and in good condition, others still have the tags attached.

How do consignment stores work?

Consignment stores have two operating models. First, some accept items for consignment, meaning they take pre-loved clothes, shoes, or accessories from individuals (consigners) to sell at their store. When the item sells, the consignor receives a percentage of the sale, which typically depends on the item’s value. Many designer consignment stores operate using this model.

Others buy clothes, shoes, and accessories outright by paying the seller on the spot. Because these consignment stores run a higher risk of not selling the item, sellers typically receive a lower percentage of the item’s intended selling price.

Explore Resale Clothing Franchise Opportunities With TCTC

At The Closet Trading Company, our innovative resale clothing franchise offers both consignment and resale options to our clients. As a result, they receive the best of both worlds – a higher return for those willing to wait for their items to sell, and cash and trade up front  for those looking for instant gratification

When you become a designer consignment store owner with The Closet Trading Company, you will join the lucrative secondhand shopping movement, which is expected to grow 18 percent annually through 2024. Our unique consignment model is at the leading edge of the circular economy and is fueled by mindful consumers committed to global sustainability and eco-conscious consumption.

Think you’d make a good consignment franchise candidate with TCTC? Learn more about our unique franchise opportunities here.

Interested in Franchising?

Owning your own upscale boutique is a fun and rewarding experience, TCTC franchise can get you there.

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The Closet Trading Company was built around making authentic designer clothing accessible through a reputable and trustworthy high-end resale clothing business model. Our customers come to us for a boutique-like experience that features exceptional service and peace of mind—knowing that their designer purchases are authentic. 

We know that luxury pieces are an investment, which is why we use advanced technology and proven processes to authenticate every piece that comes through our doors. As a result, our clients can shop knowing that their investment is secure, as we guarantee that every item we sell is authentic.

How We Authenticate High-End Resale Clothing

At The Closet Trading Company, we use franchisee-exclusive proprietary clothing guides alongside Entrupy. It is the world’s first and only on-demand authentication solution for high-value goods. Every piece in our inventory undergoes inspection, and only items that can be proven authentic are accepted.

Entrupy has developed a state-of-the-art, AI-powered authentication system for businesses that buy and sell high-value goods, such as designer boutique franchises. With a current accuracy rate of 99.1%, Entrupy features a device that uses a microscopic camera to obtain real-time authentication. It also uses machine learning and computer vision to determine the authenticity of designer clothing from anywhere, allowing businesses to authenticate high-end resale clothing within seconds.

What We Buy (And Don’t Buy)

We aim to offer a curated selection of high-quality pieces that fit into our clients’ wardrobes. Our franchisees undergo comprehensive training in our exclusive brand standards to ensure that all pieces of women’s clothing, shoes, and accessories fit these standards.

When it comes to buying items, we are looking for pieces that are:

• Current styles manufactured within the last 2–3 years
• Designers and brands from high-end department stores and luxury boutiques
• In unworn, like-new condition
• Seasonal (i.e., sandals in the summer and boots in the winter)

Unfortunately, we do not accept pieces that are:

• Vintage styles older than 2–3 years
• Formal or professional attire
• Mall, discount, or juniors’ brands
• Men’s clothing
• Off-season pieces
• Damaged, soiled, or show signs of wear

Explore Boutique Franchise Opportunities with TCTC

When you join the TCTC family, we will give you every tool you need to make sure the designer pieces you sell are authentic.

We go the extra mile to empower our franchise family with extensive training on our proprietary pricing database and exclusive brand standards to set our franchisees up for success. In addition, our buyers are extensively trained in the research and pricing process based on the guidelines set by industry experts with over 30 years of buying experience.

Ready to take the next step in your career? Reach out to our franchise development team to learn more about our one-of-a-kind designer boutique franchise opportunities.

Interested in Franchising?

Owning your own upscale boutique is a fun and rewarding experience, TCTC franchise can get you there.

APPLY NOW