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Aug.27
8:50 PM ET
Wednesday, 27 Aug 2008
The Rebirth of Consignment Shops

When you think of consignment shops, you probably imagine second-hand shoes, tattered jackets and prom dressed from the ‘80s. But with times as tight as they are, consignment shops have taken on a whole new relevance for people looking for creative ways to pay the bills.

The consignment industry is growing 5% a year, and if you’ve been to one lately you’ve seen why. The merchandise is chock full of the same designer labels you find at high-end department stores, only for much less. For buyers, the obvious benefit is getting those labels on the cheap. For sellers, the upside is a little extra cash for unused or disregarded items – kind of like a garage sale.

In a consignment shop, the owner will typically decide how much to charge for your things then take away anywhere from 20% to 50% of the final sale. And selling items this way, as opposed to eBay or Craigslist, can be a lot easier. The web can be time consuming, and in many cases you need to deal with pricing, shipping and customer service. And contrary to popular belief, listing on eBay isn’t free. You’re charged an “insertion fee” as well as a final value free, which varies depending on your item.

But consigning your items requires little effort. The store owner takes care of everything, so once you drop your things off, all you have to do is wait for a check in the mail.

If you’ve got a closet full of decent clothes you don’t wear and not much time on your hands, consigning your items is one way to score some extra cash.

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