Buzz
In the broadest sense, thrift shopping or thrifting generally refers to purchasing secondhand items—especially clothing. People might casually mention going thrifting at a flea market, yard sale, or other similar secondhand venues.
However, a thrift shop (or thrift store) isn’t just any secondhand business: As Current Boutique’s Craving Current blog describes, it’s often a non-profit that donates its proceeds to charitable endeavors. For instance, Housing Works runs several thrift stores in New York City, using the funds to support programs addressing homelessness and HIV/AIDS. This stands in contrast to a consignment shop, which is typically a for-profit operation.
This isn’t the only difference. If you’re taking a box of used clothes to a thrift store, don’t expect to receive any payment: Items are donated to the thrift store, not sold. However, you can potentially claim a tax deduction for your donation, provided you're willing to go through the process of itemizing it.
Don’t necessarily expect to leave a consignment shop with a pile of cash, either. Some stores pay upfront for items they accept and then resell them at a higher price. However, it’s more common for you to receive payment after the item sells—if it does, that is. If it does sell, they’ll take a percentage of the proceeds and give you the rest. If it doesn’t sell, the store will likely return the item to you. Consignment shops also often have different policies about how long they’ll keep an item before deciding to part ways with it.
Since consignment shops aim to make a profit, they tend to be picky about the items they’ll accept. Some even specialize in high-end items, with luxury consignment shops exclusively taking designer merchandise. So, if you're looking to part with a collection of couture and recoup some of the cost, a high-end consignment store might be the way to go.
That being said, thrift stores offer their own perks, often going beyond just tax deductions. For one, it’s incredibly easy to donate a large batch of items at a thrift shop; there’s no waiting for someone to evaluate and decide what’s worth selling. Plus, it’s always a satisfying feeling to say goodbye to old things, knowing that your donation helps out your community.
