Resale stores buy unwanted clothes outright, shouldering the loss if the items do not sell, while consignment shops potentially offer a better price, but pay the consignor only if the clothes or other products sell within a set timeframe.
Consignment shop owners keep track of whose items sell by tagging the goods as soon as they are accepted for sale from the customer, using either a computerized or manual system.
When the item is sold, a credit is issued to the consignor -- typically between 40 percent and 60 percent of the asking price, although the percentage may be greater for high-end products.
