The consignment industry has hit the designer goods market hard the last few years. If you are considering buying a luxury, designer item, and aren’t sure whether to buy it new or used, this post can help you decide when to buy consignment. As an avid shopper of both, and previous consignment store employee, I have had my fair share of experience. Deciding when to buy new designer goods vs. used can be tricky and confusing. A lot of people also frequently ask me, “What is Consignment”?
What is Consignment
Consignment is a form of re-selling. A consignment store acts as a third party seller. When someone wants to sell an item, like a handbag, they have the option to bring that bag into a consignment store to have the store sell it for them, for a fee. Most consignment stores ask 50% of the sale price as a fee, although some will take 40%, or vary depending on list price and type of consignment store. Essentially, the item is owned by the original owner until the exact moment the item is purchased by a new buyer. Although the bag is at the store, it still belongs to the original owner until sold.
The Difference Between Thrift and Consignment
Consignment store sellers do not get paid until the product sells. Whereas a thrift store will pay money on the spot for an item, and it will become the stores property until sold. Although you get paid immediately with thrift, it is often a lot lower than what you would receive if you opted for consignment, instead. Thrift also can be categorized as donation only, depending on the store.
Where to Shop Consignment
Now, where to shop consignment is important. Its not all about when to buy consignment, but also where. Buying from direct seller shopping apps, such as Poshmark or Mercari can be tricky. A lot of fake goods end up being sold on these sites, when claimed to be real. I always and only recommend buying used when from an authenticated store or platform, such as Tradesy, the Real Real, Le Prix or a local consignment store that has an authentication team. If you are unsure about the authenticity of an item from a third party seller, make sure to ask about a return policy before purchasing in case you would ever find that item is a fake. Any reputable seller will allow 100% returns if the item is ever found to be a copy or questioned.
Another great tactic to keep in mind when purchasing a used designer good, is learning about authentication. Learning how to read date codes on bags such as Chanel and Louis Vuitton is really helpful. There are a ton of articles out there that have taught me a lot. A great one is this article. Being able to distinguish between a random, fake dote code and a real one is super important. Knowing the differences between real leather and faux leather is important, as well as looking carefully at hardware and logos. Do your research, and you’ll have better luck staying away from the fakes.
When to Buy Consignment
If you are someone that enjoys luxury goods, such as designer handbags, clothes, shoes and accessories, high end consignment stores should be considered. When you should buy consignment is when you want to save some money, or be sustainable! Often times, very high end consignment stores, and online consignment sites, will only accept like new items, or brand new. For example, the Cleveland Consignment Shoppe only accepts new or like new items, and accept certain luxury brands. When you are in the market for an expensive designer item, its always a good idea to check reputable consignment stores and websites before making the purchase brand new. You often times will save at least $200-300, if not more, and they usually even come with the original packaging as well, or have the tags on. Whats the point in not saving a little?
My Consignment Purchases
A lot of my designer handbags have been purchased via consignment. When I buy consignment, I browse through Tradesy and Le Prix a few times when their sales hit and play with the numbers. After working about a year in a consignment store, I have a pretty good idea of what things could be worth. If sold at the right time and cleaned up.
For example, I purchased this Chanel Lambskin leather Mini Flap Pink handbag last year at a consignment store in Florida. I paid around $750 for it, but re-sold it this year for $1350 online. After the 20% selling fee, I made a profit of $330. The bag didn’t get any newer or any cleaner, I simply just marketed it well, and planned when I should sell it. I have been doing this back and forth a lot for my mother, as well.
After growing tired of a bag its almost fun to re-sell it and buy something new. Not to mention its sustainable and keeps you closet from getting over-cluttered. While I do have items that I plan to never sell, such as my first Chanel bag. Almost any designer piece can be re-sold. Not always for a profit, but generally near the price you paid for it. A lot of research has to be done to sell effectively, but its possible! I have bought some of my all-time favorite pieces via consignment stores and websites.
My Chanel bags, Chanel belts, a pair of classic black Christian Louboutin pumps and a few other pieces. Its super easy to find great deals and sales, I always sign up for the mailing list on my favorite platforms. I also make sure to browse every time there is a sale. I don’t always buy, but I like to get an idea of what is selling well right now, and what is not. Plus, I always have a running wish list going, lol.
What About Men?
When it comes to menswear, the male consignment industry has been growing rapidly. I even bought my boyfriend his first Louis Vuitton wallet last Christmas from consignment. It was brand new with box and a great deal. He freaked out and uses it every day, lol. I always take a look at the menswear too when I am browsing. Designer men and women’s wear doesn’t tend to vary too much. Often just in colors and materials, and I always like the men’s stuff just as much as the women’s.
When to Buy New
If you like the feeling and idea of purchasing new designer pieces, but still want to save some money, go for the little items. Knowing when to buy new versus when to buy consignment is hard. What I tend to buy new from designer stores, such as Louis Vuitton, is small accessories. I bought a small LV bracelet, and silk scarf last time! I was in Naples at the Louis Vuitton store, and loved it. It is an experience shopping directly from designer brands, don’t get me wrong. Its fun, everything is pretty and wrapped up, and you even get champagne, sometimes.. ha! I also bought my pink LV monogram Emile wallet new, but that was a gift. I hadn’t been able to find one used yet as it was a limited edition color.
If you are ever in the position to purchase a new limited edition designer piece, I highly recommend this. It truly is an investment. High end designers, like Chanel, Hermes and Louis Vuitton hold their value so well. Limited edition items are almost always resold at a price higher than the original retail price. Due to the very low quantities and availability, these items sell out fast and will be able to be re-sold, fast.
Sell Your Stuff
If you are someone that hates the idea of wearing other peoples shoes, buy new. You’ll still be able to re-sell them if they are in decent shape. However, if you’re like me and don’t care, buying designer shoes used can save you tons of money. I used to leave the consignment shop I worked at with a new pair at least once or twice a month. It was a problem..
How to Consign
When you want to start cleaning out your closet, or trade in pieces, consignment is a great thing. You are able to do it yourself now! With websites like Tradesy and Poshmark, who take a 20% fee. These websites have super easy apps that allow you to list, photograph and sell your products on your own.
With the large markets these platforms have, I myself have had great luck with this. If you are not someone who wants to deal with the hassle of selling yourself, taking your items to a reputable consignment store is the easiest option. You simply bring it in, have the store look it over, establish a price and wait for a check when it sells! Easy.
I am currently on my way to New York City for the long weekend. I can’t wait to stop into the tons of consignment shops there. I’m sure I’ll also be shopping and stopping into some new retailers as well. I might allow myself to buy a few new items too, but I guess I’ll have to see how much money I have spent. I am going to be writing an NYC Travel Guide and posting it next week, so keep an eye out if interested!
Have a great Labor Day Weekend!
XO,
Tori
