The way we buy and sell luxury is changing fast, and understanding the terms is key. The luxury goods market has witnessed significant growth in secondhand shopping, with new services launching throughout 2025.
Most recently, myGemma launched a new luxury consignment service in February, expanding beyond their direct selling model to offer customers more ways to monetize their designer items. But what exactly is the difference between consignment and resale?
The Fundamental Distinction
The primary distinction between consignment and resale lies in ownership and payment timing. With resale, stores purchase items outright from sellers, paying cash or store credit immediately upon acceptance. The store then owns the items and is responsible for selling them. In contrast, consignment operates on a partnership model where the original owner keeps ownership until the item sells, receiving a percentage of the final sale price only after a successful transaction.
As Andrew Brown, CEO of myGemma, said:
“Our consignment offering, alongside our direct selling option, is designed to help our customers sell their designer goods in whichever way is most practical and beneficial to them. Our goal is always to make both buying and selling luxury items fast, easy, and reliable.”
How Consignment Works
Consignment stores act as intermediaries, displaying and marketing items for their owners. When an item sells, the consignment shop takes a portion of the sale price as commission, while the consignor receives the remainder. Consignment stores attempt to sell pieces on your behalf, and if items don’t sell within the agreed-upon timeframe, owners can usually reclaim them.
The myGemma consignment service shows how this model can benefit sellers. The company lists items on 25+ marketplaces, handles professional photography and any necessary repairs, and reports that 80% of 2024 listings sold within an average of 52 days. Customers can earn up to 25% more through consignment compared to direct selling.
How Resale Works
Resale stores offer to purchase gently used items, providing immediate payment to sellers. This approach transfers all ownership and risk to the store, which then works to sell the items at a profit. Sellers receive less money upfront compared to possible consignment earnings, but benefit from immediate payment and no further involvement in the selling process.
Brown said:
“We specialize in purchasing a wide range of luxury brands in a variety of conditions. Our team of in-house luxury experts is on hand to accurately price, quickly authenticate, list, and sell our customers’ pre-owned designer items.”
Advantages and Considerations
Consignment offers several compelling benefits for sellers. Notably, there is the potential for higher earnings (up to 25% more, according to myGemma’s data), as well as the advantage of professional marketing and presentation of your items. This approach also gives sellers access to a broad marketplace distribution network, with items listed across more than 25 platforms, and ensures that there are no upfront costs for photography or listing services. However, consignment does come with certain drawbacks. Payment to the seller is delayed until the item actually sells, meaning there is no guarantee of a quick payout. Additionally, there is always the risk that some items may not sell at all, and even for successful sales, the wait time for payout can be significantly longer compared to direct resale.
In contrast, the resale model provides immediate payment upon acceptance of your items, which is ideal for those who prioritize a quick and hassle-free transaction. Once an item is accepted, the seller’s involvement ends, and the transaction is concluded at once, making this a convenient option for anyone looking to declutter quickly.
The drawbacks, however, include the fact that payment amounts are typically lower than what might be earned through consignment. Furthermore, the store, rather than the seller, determines the final pricing. This leaves the seller with no control over the eventual sale price, which can be a consideration for those hoping to maximize the return on high-value goods.
These contrasting qualities make it important to choose the model that best matches your financial goals, timeline, and desired level of involvement. Consignment maximizes potential earnings but requires patience, while resale delivers fast, definitive results with less potential upside. All claims above are corroborated by official myGemma sources and industry best practices.
Industry Growth and Market Trends
The luxury resale market is expanding rapidly. The global secondhand apparel market is expected to reach $367 billion by 2029. This growth reflects changing consumer attitudes toward sustainability and shopping for value.
Major platforms are responding to this shift. Rebag launched consignment services in 2023, while eBay UK introduced luxury consignment by partnering with expert sellers to handle listings professionally.
Making the Right Choice
The decision between consignment and resale depends on your priorities. Consignment is best for those who want higher potential returns and professional handling, especially for luxury goods. Resale is a strong option for those who value speed, simplicity, and certainty in transactions, even if it means accepting a lower payment.
Both models keep quality goods in circulation, extend the life of luxury products, and meet the needs of a growing community that values sustainability and smart shopping choices.
