It's the first economic decision a resale store makes, and it shapes your cash, your margin, and your supplier relationships. Here's how each model works and how to choose — often, both.
Consignment: the seller keeps ownership until the item sells. When it does, you split the proceeds; if it doesn't, it goes back to them (or converts per your terms). You put up little cash and carry little risk, but your money is tied up in things that may not move, and you owe payouts.
Buy-outright: you pay the seller on the spot — cash or store credit — and own the piece. You take on the risk that it won't sell, but you keep the full margin and have nobody to pay later.
The models aren't a loyalty test — they're tools. A common split: consign the higher-value, slower-moving, or uncertain pieces (designer, seasonal, unusual sizes) where you don't want cash at risk, and buy outright the dependable fast-sellers you're confident in. Decide your default per category before you open, and revisit it as you learn what actually turns.
Both models live or die on what you take in. Consignment fills your floor with more selection, which makes screening even more important — you don't want to carry (and track, and return) junk. Buy-outright makes screening critical because you're paying cash on the spot for a call you can't take back. Either way, the leverage is the same: screen items against your buying rules before they reach the counter, so every piece you consign or buy already fits your store. That's the front door Tag to Rack handles (see how it works), and the split mechanics that follow are in consignor agreements and splits.
Screen every submission against your buying rules before it reaches the counter — consign or buy with confidence.