How to Start an Online Thrift Store in 7 Simple Steps
Trying to make the most of start online thrift store? You are in the right place. Below we break it down in plain English, with practical tips you can actually use.
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Starting a side hustle or small business isn't as difficult as you may think. With some basic equipment, you can start an online consignment shop selling used clothing and accessories for free or with minimal upfront costs.
Written by Catherine Collins Last Updated: April 1, 2025 Reviewed by Jana LynchSome of the links on DollarSprout point to products or services from partners we trust. If you choose to make a purchase through one, we may earn a commission, which supports the ongoing maintenance and improvement of our site at no additional cost to you. Learn more.
Most of us love the idea of making money at home.
Starting an online thrift or consignment store can be a good way to accomplish the goal of making some extra money online.
This type of side hustle or small business might not be as hard as you think. All you need is some basic equipment, items to sell, and a platform to sell them on. And you can use the extra funds to save for a down payment, remodel your house, or take your parents on that dream vacation.
What Is a Consignment Shop?
An online thrift store, or consignment shop, is a website or app where people can purchase or sell used items.
The consignor brings items that they no longer want. When one of the items sells, you, as the consignment store owner, receive a portion of the proceeds in return for listing the item and handling the transaction. The consignor gets the remaining funds. A typical percentage split is 60/40, or 50/50 for more expensive, high-end items.
You might shop for used clothing or accessories at popular online thrift stores like thredUP or Poshmark. Resale websites are essentially large consignment stores that are excellent sources for high-quality, gently used clothes at a fraction of the cost you would normally pay.
Related: 20 Best Small Business Ideas for New Women Entrepreneurs
How Much Can You Make Consigning Items Online?
The resale industry is a major business in the United States. The number of resale stores has grown 7% over the past two years, according to the National Association of Retail and Thrift Shops.[1] And First Research estimates that resale stores in the US make a combined annual revenue of $17.5 billion.[2]
Thrift and resale stores are popular with a diverse set of shoppers. According to thredUP’s 2019 Resale Report, 64% of women have bought or are willing to purchase items secondhand. That number is up from just 45% in 2016.[3]
Thrifting also transcends generation. Thirty-three percent of secondhand shoppers are Millennials, while 31% are Boomers. Gen X makes up a healthy 20% of thrift store shoppers. Value chain, department store, and luxury shoppers all purchase secondhand in similar numbers, according to thredUP’s 2019 Resale Report.
These positive trends make the online thrift shop business an exciting option if you’re looking for an extra source of income.
Things You’ll Need to Start an Online Thrift Store
Although you don’t need a physical location to start an online thrift store, you still need a few things to get started.
Items to consign
The first thing you need is items to consign. You can start with your own closet, of course. But eventually, you may need to source items elsewhere. You can find those at yard sales, thrift stores, or from friends and family.
To start your consigning business, think about what kinds of items you want to sell. Will you focus on something specific, like maternity clothes or luxury handbags; or do you want your site to be more general? You can start with one niche and expand as your resale business grows.
Selling platform/website
To get your online thrift store up and running, you need to use a sales platform or create your own website.
You can choose either an all-in-one platform or set up a WordPress site plus a payment platform. People also have success in setting up Instagram accounts to list clothes for sale and receiving payments through PayPal.
Shopify is an example of an all-in-one sales solution. Just log in, post your items, and start selling. This is a quick way to get up and running, but it will cost you $29 a month or more. Fortunately, you can deduct this cost on your taxes.
If you don’t want to spend the money for a fully hosted and supported solution, you can also set up a WordPress site and pick a selling platform plugin. WooCommerce is a commonly used e-commerce platform that you can integrate into a WordPress site.
You can also use well-known apps to sell your items. Poshmark and Mercari are excellent, but they’ll take a portion of your sales. If you decide to list your items on Instagram and bill via PayPal, you’ll likely have to pay PayPal fees.
Pick whatever platform is the simplest for you. You can always change later if you need to.
Related: 14 Stores to Sell Used Furniture for Cash (and How to Make the Most Money)
An organized system
Your online thrift store will likely sell numerous different items from multiple categories. You might also sell items for other people if your store grows. You’ll need a way to keep track of items as well as payments, fees, and shipping supplies.
There are a few different choices for tracking your inventory and payments.
When you’re small, you may be able to use a simple paper tracking system. Attach a numbered tag to each item and record the consignor of each tag number, whether that’s you or someone else. When that item sells, record the sales cost, fees, and any other relevant details. You can track this information on a physical paper log or in a spreadsheet.
To automate the process and reduce your risk of errors, you could invest in software made specifically for consignment store owners. Industry-specific software can help you organize your consignor accounts, inventory, sales, and consignor payment information all in one place.
A decent camera
When you’re selling items online, you need to take high-quality pictures of your merchandise. Good pictures will make items sell faster.
A good quality camera can help you take appealing product photos. An inexpensive tripod will also be helpful. If you’re on a budget, a simple DIY product photography setup will be enough to get started with. You can also use your smartphone since numerous of those cameras are near-professional quality.
Shipping material
Since you’ll be shipping physical products to buyers, you need to have shipping materials on hand. Choose the minimum amount of protective packing materials to keep your product intact. If you’re shipping something soft like clothes or handbags, basic protection should be just fine. For breakable products, you’ll want something with more cushion.
You can find or purchase packing materials from a variety of sources. Friends, neighbors, and family might be more than willing to donate their boxes and shipping materials to you. You can also get supplies from USPS and FedEx for free when you use specific services.
How to Start an Online Thrift Shop in 7 Simple Steps
Now that you’ve set up your store, there are a fe
Final Thoughts
The bottom line: a little research on start online thrift store goes a long way. Compare your options, watch for seasonal offers, and never pay full price when a better deal is one click away.
Originally published at dollarsprout.com.
Catherine Collins
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