Top Online Consignment Shops for Selling Your Clothes | Personal Finance

Earning extra income on the side by working odd jobs or freelancing is now mainstream, thanks to the modern gig economy.

However, a side hustle doesn’t necessarily have to involve delivering takeout or giving rides. It could be selling thrift store finds online. Today’s online consignment and resale shops make it easy for people to clear out closets and make some money while they do it.

“(Consignment stores) take care of all the logistics, and you get paid when items are sold,” explains Pinky Chong, who has been selling items online for more than a dozen years and founded The Resale Academy to help others do the same.

Sellers send items to online consignment shops which list and market them on their website. When an item sells, the store handles packaging and shipping, and sellers may be paid by check, direct deposit, PayPal or store credit.

Through the resale model, businesses receive an inventory, customers get a deal and resellers may earn more money than they could through other options such as garage sales. As a bonus, online consignment shops may help keep items out of landfills.

Here are seven top online consignment shops and resale stores for selling clothes online:

Chong advises reviewing a consignment store’s payout system since they have different tiers and percentages. She thinks store commissions of up to 40% are reasonable, although there is wide variation among online stores.
If you want to cash in on this trend, read on to learn more about some of the best websites to sell clothes.

Best for: Formalwear such as evening dresses, prom dresses, cocktail dresses, bridesmaid dresses and glam jumpsuits.

Founded in 2019, Queenly was developed as a way to buy and sell formalwear of all sizes and at all price points. CEO and co-founder Trisha Bantigue competed in pageants for scholarships and noticed a common theme.

“I saw that women were having a hard time finding and affording their evening gown,” she says. “So the idea for Queenly was really born out of necessity and a gap in the market for affordable formalwear.”

Today, the website serves as both a platform for small businesses to sell their inventory as well as a marketplace for individuals to sell previously used formalwear. Dresses selling for less than $500 are sent directly to buyers while those costing more than $500 go to Queenly for a quality check first.

Items can be listed for sale using the Queenly app, and the site provides a prepaid label for shipping. When an item sells, the site takes a 20% commission. Buyers have three days to accept an item, and seller earnings are distributed within three days of delivery or acceptance. Payment can be received via PayPal, Venmo or direct deposit.

Best for: Luxury goods. The RealReal is one of the top online consignment shops for brands like Burberry, Chanel and Hermes.

At the RealReal, sellers can request a shipping package with prepaid postage to mail their clothes. In some areas of the country, The RealReal also offers in-home pickup of goods for consignment or operates consignment offices where people can bring items to be valued.

“I really like the RealReal for high-end purses and recently purchased a Louis Vuitton bag for an excellent price and the condition was superb,” says Kristen Conti, the broker-owner of Peacock Premier Properties in Englewood, Florida, who also buys and sells regularly through online consignment shops.

Sellers get paid on a sliding scale. The more expensive the item, the more commission you get. For instance, if you sell an item for $99 or less, your commission is 20%. If you sell something between $200 and $299, you’ll receive 55%. If something you sell goes for $5,000 or more, you’ll get 70%, which would translate to $3,500 or more.

But you get even more if you’re selling a lot. There are four tiers: trendsetter, influencer, tastemaker and VIP. If your sales add up to $1,500, you’ll get an extra 1%. If your sales add up to $5,000, an extra 2%. If your sales add up to $10,000 or more, you’ll receive an extra 5% (on top of your regular commission).

Best for: Women’s and men’s clothing, as well as bags and jewelry from luxury brands such as Coach, Prada and Versace. High-end vintage items and some lifestyle goods are also accepted here.

Focusing solely on high-end brands, Vestiaire Collective is making a name for itself as a site for pre-owned luxury goods. The website caters to a global audience and operates on a system of peer-to-peer sales but also offers an authentication service should a buyer have concerns about an item they receive.

Sellers send photos and descriptions of their items to the site for review. If approved, Vestiaire Collective lists them, and sellers hold onto the clothes until they are sold. Once a sale is made, the consignor is provided a prepaid label to send the item directly to the buyer. If a buyer has doubts about the authenticity of their purchase, it is then sent to Vestiaire Collective to be checked by a quality control team.

To ensure sales go smoothly, confirm in advance that your items will meet expectations. “Check that they are in good condition and clean condition,” Chong says. That means no stains, fading, missing buttons or excessive wear.

Vestiaire Collective takes a flat fee based on an item’s price. Site commissions are 15% if an item is selling between $80 and $13,000.

So, if you actually have a piece of clothing that can sell for $13,000, Vestiaire Collective will take $1,950 and you’ll get the rest. If you sell anything for over $13,000, Vestiaire will pocket $2,000, whatever the price, and you’ll get the rest.

If piece of clothing is selling for less than $80, Vestiaire Collective will pocket $12. Vestiaire will not sell anything for less than $18.

The prices are a little different if you’re from Canada (for instance, Vestiaire won’t sell anything for less than $34 Canadian dollars). For both the U.S. and Canada, there is also a payment processing fee of 3% for all items except those priced at less than $80 – that processing fee is just $3.

Best for: Women’s, men’s and kids’ clothing and accessories in a wide variety of brand names such as Forever 21, Under Armour and Old Navy as well as some designer labels.

Poshmark isn’t a traditional consignment shop because sellers must manage their own listings. Sellers take photos, upload descriptions and determine their own prices. The company has a user-friendly mobile app and an active marketplace that seems to attract millennial and Gen Z shoppers.

“It’s actually super fun and a great feeling to do it myself and not pay someone else half of the item’s value to handle it for me,” Conti says. “It allows me to do a little bit at a time and not get overwhelmed.”

For items with a sale price lower than $15, Poshmark charges a flat fee of $2.95. More expensive items are subject to a 20% commission.

When an item sells on Poshmark, the company provides a prepaid shipping label that sellers use to mail the purchase directly to the buyer. Items with a value of $500 or more are eligible for free authentication through the Posh Authenticate feature.

Best for: Affordable baby, kids’ and women’s clothing in brands such as Gymboree, Gap and Matilda Jane.

Kidizen is a popular place to buy and sell kids’ clothing. The company, which has a website and an app, offers both a traditional resale platform and a white glove consignment service.

Sellers who want more control over the sales process can set up a virtual shop, snap and upload photos of their clothes and manage their own prices. Kidizen’s consignment service uses Style Scouts who make house calls to sort through items and then sell them on your behalf.

If you choose to sell items yourself, Kidizen provides a shipping label to send the goods. The service charges a marketplace fee of 12% plus 50 cents for each transaction. Sellers are responsible for covering the shipping costs.

Style Scouts are not available in all areas, but when they are, they take care of the listing and shipment. Profits are then split between the scout and seller.

Best for: Women’s, kids’ and maternity wear in a wide range of value, mall and premium brands, including J. Crew, Motherhood and Carter’s. ThredUp also accepts shoes, handbags and designer items.

While other consignment shops focus solely on luxury brands, ThredUp makes online clothing sales accessible to the average person. The downside is that there is relatively little profit to be made compared to higher-end stores. And while you can send in low-priced value brands like Old Navy and Forever 21, you won’t receive a payout for them.

“ThredUp is great if you just want to do a giant decluttering and not have to put a lot of effort into it,” Conti says.

Sellers can request a clean-out kit to send in their clothing, shoes and handbags for consideration. The postage is prepaid by the company. ThredUp uses an algorithm that looks at the brand, style, season and current inventory to price items. Sellers have a 12-hour editing window to adjust the listing price, though.

Payouts range anywhere from 3% to 15% of the sale price for items listed from $5 to $19.99, and it goes up from there. By the time you’re selling something for $100, you’re getting a 60% payout, and if it’s $200 or more, an 80% payout.

Items that are not accepted or that do not sell can be returned for a shipping fee. Otherwise, they become the property of ThredUp.

Best for: Designer handbags, accessories, shoes, jewelry and watches. Also accepts some shoes. Popular brands on Fashionphile include Hermes, Goyard, Tiffany and Cartier.

For high-end bags and accessories, try selling on Fashionphile. It’s one of Chong’s top choices for selling luxury goods online.

The website offers multiple options for sellers. They can accept payouts to sell their items outright or list items on consignment. Sellers can submit items for an online quote, schedule a video conference with a procurement specialist or, in select areas, request a white glove pickup. Fashionphile also has some physical locations where items can be brought.

Items accepted by Fashionphile go through an authentication process, and those not determined to be authentic are returned to sellers upon payment of a $75 authentication fee ($125 for Hermes, Birkin or Kelly items).

For its consignment fee, the site takes 30% of the sale price up to $3,000 and 15% of the sale price above that amount. Items may be marked down up to 20% after 30 days, and if an item is unsold after 90 days, sellers can discuss with Fashionphile whether to return the item or keep it for sale at a reduced price.

Payment for items sold on Fashionphile may be made via a check, direct deposit, wire transfer or PayPal. There are fees for the latter two options. You can also choose to receive a store credit or Neiman Marcus gift card for a 10% bonus.

If you have a closet full of items you no longer wear, now may be the time to reevaluate your wardrobe. Don’t let your clothes and accessories gather dust when you could be selling them for cash on one of these top online consignment shops.

Thinking of selling some of your wardrobe? Laurice Wardini, based in Los Angeles, is the co-founder of the ClothedUp.com, a fashion, beauty and lifestyle website. She has some suggestions for anyone selling clothes to consignment shops.