Before I begin, I have a quick story of coincidence I would like to share: A couple weeks after I received this assignment, one of my closest purse-loving friends sent me the following text message: “Can you please write about consignment? I have a couple of handbags and over a dozen pairs of shoes I want to sell, but I have no idea where to go or how to start.” (Ugh, if only we shared the same shoe size.)
Anyway, her text sums up how I feel about consigning: It’s not as easy as everyone thinks, especially for first-timers; and at least from my experiences, the act of reselling involves a lot of luck, a little bit of mystery, and a dash of disappointment.
In the past, I have always felt fairly confident about consigning any one of my bags. That is, until I actually tried it for the first time. With little knowledge of reselling, I used to say things many of you have probably said too, such as, the condition is great, so it’s a guaranteed sell, or the value increases every so often, so I know I will get something back one day.
Well, not exactly. Though my statements are factually correct (many of my bags are in excellent condition, and many of them have risen in value compared to what I originally paid) – that doesn’t begin to cover how likely I will be in successfully reselling a bag.
My first brush with consignment was a few years ago. I was looking to sell my Chloé Lexa, which I originally bought for $1,800 or so. Given the bag had gone out of style and wasn’t considered a classic, a couple of online-based consignment shops wanted to list it between $600 and $800. At best, I was told I would receive anywhere from 50 to 60 percent of the commission, given the companies’ pay scales. That means I was looking at about $480 in profit, which comes out to less than a third of what I originally paid! I decided to hold onto the bag (I still have it) because I couldn’t get myself to sell it for that low.
Then, a few weeks ago (which sparked the idea for this post), I came into contact with a local secondhand seller in Miami, who instructed me that she would list the bag for $1,000, offering me 50 percent of the profit once the bag sold. I turned it down, but her information was helpful.
Across the board, it seems online-based resellers along with smaller, brick and mortar secondhand stores offer between 50 and 65 percent commission on bags under $10,000. The more expensive and sought-after a bag, the more you’ll receive. For example, sell an Hermès Birkin, which may be priced anywhere between $10,000 and up, and you’re looking at a 70 percent return (if you consign with the RealReal). Rebag, however, does things a little different. You can sell your bag to them immediately, as opposed to receiving your payment once the bag sells. However, in my experience, both sites offer about the same amount in the end, give or take a few dollars.
That brings me to my next point: The more purse-loving friends you have, the higher likelihood you will have an easier time selling a bag. Think about it: You want to consign a good condition Chanel Classic Flap for $4,000. Offer it to a third-party seller, and you’re looking at $2,000 to $2,400 in profit. Sell it independently (via social media, eBay, or word-of-mouth) and you’ll probably end up with anywhere from $3,500 to maybe even your full asking price.
I’m not the only one who thinks this either. Jess236 on tPF wrote in saying, “It’s always better to try to sell it yourself first.” On the flip side, Jellyv said: “Consign a bag and take a loss. It’s that simple. You can ask various reseller sites what their percentage/terms are and agree, or not. “Decent return” is how you view things, but doesn’t change what a business wants to make from handling your bag, or what its true market value is at a given point in time.”
However, there’s another option I recently discovered: Fashionphile. Buy a secondhand bag on the site, and sell it back within six months for 70 percent of the item’s purchase price. Sure, it’s not a complete solution but at least your guaranteed something.
I’ll leave you with this, the same advice I gave my friend who texted me: If you’re thinking about consigning a bag, go to your friends, family, and acquaintances first (social media followers, tPF members, etc.). Maybe even make a thread on tPF. If that doesn’t work, post it on eBay or a similar self-selling, e-commerce site. Try everything before giving into your neighborhood secondhand store or an online-based consignment shop. I only say this because you’ll get the most bang for your buck if you manage to sell your bag on your own. Worst case scenario, 50 to 60 percent of your bag’s value isn’t terrible, but it’s not as much as you would otherwise receive if you didn’t use a third party.
Also, keep in mind: Most bags aren’t investments. Sure, you are likely to get at least a little something back for almost any luxury good (unless it’s in terrible condition). However, if it isn’t Chanel or Hermès, you’re not likely to get anywhere close to what you paid – unless you consign independently. Even then, it’s an arduous process. Remember to stay patient, though. It might take time to sell your bag, on your own or through a site, but so long as it’s in good condition, there’s a high chance it will sell.
RealReal is a scam artist.. They are only designed for fast sell and will wantedly put items on 30% and 40% off the listing price..
What do you mean? The Real Real sells Birkin’s for thousands over the retail price. Also, check their prices on
Chanel, Valentino, Dior, Gucci, etc. Their prices are not a bargain, at all.
Yes, $$$ over retail. But getting a Birkin often requires an extensive purchase history. Paying over retail guarantees you get the bag vs waiting for it to be *offered”.
Of course! Everyone who purchases high end bags knows this, it’s common knowledge.
I’m intrigued by Fashionphile’s policy to buy back at 70% within six months. I am horrible about buying bags and tiring of them quickly. This could be a nice alternative to paying full price and then selling at a huge loss.
I am the same way (I always want a new bag!) and have bought and returned a few bags to Fashionphile. It is a pretty easy process–I basically have been chocking up the 30% as just the cost of renting the bag for six months. I still buy the majority of my bags for keeps but it has allowed me to get a few trendier bags which I know will never hold their value for a short while and feel a lot less guilty about it.
Agreed – resale is IMPOSSIBLE lately. I’ve been listing my bags on Tulerie right after I buy them. If it gets borrowed from me even once a month, it’s better than nothing and chips away at the amount I’ve spent on it.
I”m not sure why we think bags (other than Hermes and some Chanel) are “investment” pieces that we think we can make back the money we spent on them. (Don’t get me wrong, I would love to make some money back on impulse purchases, but it doesn’t seem logical.)
If you buy a fancy new BMW, you’ll lose value on it the minute you start driving it. Hold on to it for a year and leave it in your garage and it’s still losing value. Same with a lot of other durable commodities (homes, clothes, electronics). I’m not an economist, but I would imagine it would depend on the rarity of the bag and the market willing to purchase it at top dollar.
maybe a future post? The economics of the resale market? Could make us all better shoppers?
I’ve had a good amount of luck with online resellers that I’ve found through Instagram (but please please please do your due diligence beforehand on whether they’re reputable). They tend to charge a little less than 20% commission, so it’s not as bad as a lot of the other mainstream options. I’ve usually taken a little bit of a loss when selling bags that I purchased brand new (though I bet if I wanted to sell my Chanel caviar minis at this point that I could actually net at least what I paid). However, since I often buy pre-owned (excellent condition) bags or SLGs, I have found myself being able to actually MAKE some money when reselling.
I’ve looked at Fashionphile and RealReal and I cannot believe the prices they want for used merchandise. There is no way I would pay (for example) $3,000 for a used bag, with the risks of it being a fake, and the wear and tear from a prior owner, when I could get that item new for a few hundred to a thousand dollars more. Anyone who’s ever Craigslisted something knows you have to list for 30-50% of the original price to get an item sold even if it’s in good condition. Your bags are no different.
I think the resale market is so saturated right now, even places like eBay are a tough place to sell. Aside from that, with selling on your own, you can so easily fall victim to scammers. As the author states, most bags aren’t investments. One piece of advice I would offer is trying to buy pre-loved bags, the same way you might buy a pre-owned luxury car, to cut down on the loss to depreciation. Try to find a style that is likely to stay in production for a few years. And finally, buy something you love and will use.
You’d have to be an idiot to think that buying a purse is an investment. I own two H bags and I don’t even consider them an investment. They are meant to be used and enjoyed.
“$480 in profit….”
this is not a profit
Profit wrong word …
Y’all are crazy if you think someone should want to buy your USED bag for close to retail, or even 60% of retail.
“Should” is not the right word. No one “should” buy or do anything they don’t want to do. The better question is “would” someone want to purchase a pristine, never used bag selling for less than retail or “would” they want to throw their money away, on the same bag, at the retail price? If someone covets a bag why “wouldn’t” they purchase for a savings if they “could”? That’s the question and that’s the important difference.
They do all the time on real real!?
But does that mean they SHOULD? Because should was they key word here.
Why do keep referring to the sale amount as profit? It’s not profit esp when you take over 50% loss.
Because these are the same people who think or once thought handbags are an investment. They clearly don’t understand basic accounting concepts.
Thanks for the info. I don’t consider my bags an investment, and when I sell them, I view it as getting a little back vs. just giving it away. I find a site like Real Real convenient because they have a web presence, they do all the shipping and taking of photos and posting, etc. That said, you do take a hit in your commission for this service. I feel like I do better there than my local consignment shop, which never seems to really move anything. I’ve tried to sell myself on Vestiaire, but didn’t see any movement on my items. I guess you just have to buy what you like, enjoy it, and if you sell it the $ are a bonus to invest in new things. Except for top bags, you shouldn’t really expect to get close to what you paid for it four years later. I personally would rather just spend the $ and get a new bag if the “savings” is only going to be like $300-400.
You forget to mention how much time you may end up spending trying to sell it on your own, OR the various ways people will try to scam you. Of course you’ll “make” more this way, but you’re also going to have more time invested in trying to sell it. So really it comes down to what is your time worth to you?
The real question to me is to consign/sell directly to a reseller or try myself at trustworthy platforms (Vestiaire, Jolie Closet, one I use in Poland). I’m in Europe and the choice is limited but sometimes it doesn’t even make sense to sell, just keep it.
I’ve found the resellers buying directly are either greedy or have a very high cost of running the business (likely both). One tried to buy off me a black Fjord Kelly in great condition for €4k. I know her prices and turnaround times and the bag would be likely to be sold immediately at €6-7k. Other UK reseller was also very upfront they’re going to make £3k profit while paying me peanuts.
Sold myself quickly, rather effortlessly and easily at Vestiaire for €7k.Had to share the proceeds with them (approx. 20%) however I appreciate that (to some extent) I can gauge the market re prices and then make an informed decision. They really got better with their commission, especially for high value items like top Hermes bags.