Have you ever wondered what the difference between a thrift retailer and a resale shop is? Any store that takes in used goods to resell them is a resale shop. Here are the three basic categories of resale shops:
1. Consignment shops. Accepts goods from patrons, sells them and pays a portion to the patron.
2. Buy-outright shops. Purchases used goods and mark them up for a profit.
3. Thrift store. Usually run by a nonprofit organization to support charitable causes.
Consignment and buy-outright shops
Both types of resale shops are for-profit businesses. The owner of the consignment shop doesn’t pay out cash to gain goods. In this scenario, some patrons may not be willing to give their best goods.
With a buy-outright shop, owners pay cash to gain goods. In buy-outright shops, you can buy goods at discounted prices and resell them at higher prices. Most sellers to buy-outright shops like receiving cash without having to wait for the goods to resell.
Thrift stores accept donations that are then marked for sale and sold in a retail shop or thrift store. The proceeds from the donation and thrift stores go to fund nonprofit organizations or other charities. Thrift stores do not compensate donors for their donations, but those donations are usually tax-deductible.
Many thrift locations collect donations right at their retail shop and are donation and thrift stores. Others have specific areas to collect and hold donations. Resale prices at thrift stores are usually low because the goods are donated.
Charitable thrift stores
Goodwill Industries is the most recognized thrift shop chains in Canada. They use revenues earned in their donation and thrift stores to support disabled Canadians find meaningful employment and offer job training to help them assimilate. Those individuals with a passion to help others might volunteer at donation and thrift stores to give back to their community.
Goodwill willingly accepts donations of clothing, shoes, books, accessories like purses and belts, dishes, furniture, household decorations, sports equipment, and consumer electronics. Even if they are unfit for sale in a thrift store, Goodwill can sell donated items as bulk lots, which still generates income.
Beyond mere donation and thrift stores, Goodwill is passionate about the path to employment for Canadians with disabilities. Its Path to Employment program offers job coaching, job search, and training to individuals with intellectual and development disabilities. Goodwill also offers Commercial Services that provides innovative and cost-saving services for companies such as packaging, assembly, and light manufacturing.
Says Goodwill’s President & CEO, “Together, through the dignity of a job and the power of work, we are changing lives for the better, strengthening families and communities all the while being a steward of a better environment through our recycling, upcycling and repurposing.” In fact, 89.6% of every dollar spent in Goodwill thrift stores goes back to the community to help connect those with disabilities to meaningful employment.