At the end of each season, I sell my clothes to a local consignment shop. Each consignment shop sets its own guidelines for the type of designers, styles, sizes and quality they prefer. You and the consignment shop enter into an agreement by which the shop sells your goods for a percentage of the price (selling fee). This fee usually runs between 30 to 70% of the item’s selling price. As with everything, this can be negotiated depending on the quality and the designer. For example, if you have a high-end Hermes bag you would like to sell, you could probably negotiate a lower consigning fee. Once your item is sold, the consignment shop takes out its fees and sends you a check for the rest.
Before consigning any items, make sure you receive a contract that spells out how much of the sale you will receive and the length of the contract (30-60-90 days). If you are leaving your items with the store, ask for the option to pick up any unwanted items or have them donated to a local thrift store. You should go for the pick up option, so you get the tax benefits of the donation.