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 12 years and founded The Resale Academy to help others do the same.
Sellers send items to online consignment shops which then 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. What’s more, online consignment shops may help keep items out of landfills.
Here are 7 top online consignment shops and resale stores for selling clothes online:
— Queenly.
— The RealReal.
— Vestiaire Collective.
— Poshmark.
— Kidizen.
— ThredUp.
— Fashionphile.
“Review their payout system as each consignment store will have different tiers and percentages,” Chong advises. 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.
Queenly
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.
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The RealReal
Best for: Luxury goods. The RealReal is one of the top online consignment shops for brands like Burberry, Chanel and Hermès.
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, who is the broker-owner of Peacock Premier Properties in Englewood, Florida and also buys and sells regularly through online consignment shops.
Sellers get paid on a sliding scale. Those with sales of less than $1,500 will get a 55% commission, while items with an original resale list price below $195 may bring in less. Top consignors receive a 70% commission if their annual sales exceed $10,000. There are also special commission rates for specific items. For instance, watches with a resale list price of $2,495 or more are entitled to the largest commission on the site: 85%.
Certain items, such as some handbags, watches and men’s sneakers, are eligible for Get Paid Now. This feature provides an upfront payment rather than a consignment commission. Consignment items are subject to pricing by The RealReal, which states its goal is to sell items within 30 days. Payment is made via direct deposit.
Vestiaire Collective
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 $12 for items priced below $100 and $2,000 for items sold for more than $16,500. Sales for items priced between $80 and $16,500 are subject to a 12% commission. 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.
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Poshmark
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 price. 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.
Kidizen
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 chose 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 cost.
Style Scouts are not available in all areas, but when they are available, the scouts take care of the listing and shipment. Profits are then split between the scout and seller.
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ThredUp
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. 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 such as 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 up to 60-80% of the price of goods listed for $200 or more. Earning potential is higher for premium and designer brands than for mid-price brands. Items that are not accepted or that do not sell can be returned for a shipping fee. Otherwise, they become the property of ThredUp.
Fashionphile
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 pick-up. 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.
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7 Top Online Consignment Shops for Selling Your Clothes originally appeared on usnews.com
Update 09/15/22: This story was published at an earlier date and has been updated with new information.
