Thrift stores are well-known for offering secondhand and new items at low prices. To do so while maintaining a balanced budget, they must acquire their inventory cheaply. Whether you’re a thrift store owner or a curious customer, you might wonder: How exactly do these businesses strike this balance? Where do thrift stores get their inventory?
While no two thrift stores employ the exact same inventory acquisition techniques, there are a few popular places where these businesses go to source their inventory. They include:
- Donations
- Consignment
- Flea Markets
- Yard and Garage Sales
- Estate Sales
- Auctions
- Wholesalers
- Abandoned Storage Units
- Business Liquidation
- Dead Stock
- Other Thrift Stores
In this guide, we’ll discuss each of these thrift store inventory sources and answer a few frequently asked questions about the process. By the end, you’ll have an arsenal of sources to explore for cheap and affordable items to stock your thrift store. Let’s dive right in!
1. Donations
You probably already know that many thrift stores accept donations from community members, which they then use as inventory for their business. This is an excellent way for individuals to declutter their homes sustainably, as their items won’t go to landfill but will instead be resold to other individuals.
For-profit thrift stores often struggle to solicit donations, as community members aren’t motivated to give them items outside of sustainability concerns. Therefore, these businesses cannot count on donations as their only inventory source. Alternatives include exchanging store credit for items or using a consignment model to source inventory.
Nonprofit thrift stores, especially well-established ones, can attain a large portion of their inventory from donations. This is because individuals are more likely to donate to support a good cause, especially if it’s convenient for them.
Collection Bins
Thrift stores that want to maximize inventory donations often set out collection bins in areas with high foot traffic in the community. They might also partner with other businesses and community organizations to put collection bins in their partners’ storefronts or locations, resulting in more donations from those audiences.
If you take this route, make sure your bins are clearly branded to your business, promote them on your marketing channels, and maintain and check on them frequently. This way, interested individuals will have a positive experience — they’ll know who exactly they’re donating to and where they can do so, and they'll be greeted with a clean and well-maintained bin.
2. Consignment
This is how consignment works for thrift stores:
- Community members bring items to you for consignment.
- You sell these items at your store.
- When the items sell, you’ll pay the original owner and take a portion of the profits.
This is a particularly appealing option for individuals who have valuable items but don’t want to handle the sales process themselves. However, since your thrift store won’t receive the full value of these items, you should be selective about which items you accept for consignment if you offer it. If the item’s value is low, then it may not be worth consigning.
Generally, stores take 30–50% of the selling price when consigning. Regardless of what fee you charge, be sure to balance what’s fair to the original owner and what’s profitable for you. Publish these policies in an easily accessible area, such as on a sign in your store and on your website, so that individuals interested in consignment know your process up front.
3. Flea Markets
For thrift store owners who don’t mind the extra effort of searching for rare and unique pieces, flea markets are a treasure trove of valuable items sold at low prices. It’s unlikely that you’ll be able to buy in bulk at these events, so thrift stores that offer a more curated selection of items will benefit the most from sourcing from flea markets.
4. Yard and Garage Sales
Yard and garage sales are usually hosted by community members who are moving or trying to downsize or declutter. These are generally fairly casual affairs where people drop by to peruse the items available and make a purchase. Thrift store managers can do this too, but you may see better success negotiating deals by going near the end of the day.
If your thrift store has a big truck or other means of transporting a lot of items, you may offer the seller a sum of money to take everything they have left over at the end of the sale. It’s likely the seller will take you up on your offer, as they’ll be glad to have someone take all of their unwanted items away.
5. Estate Sales
Estate sales are very similar to garage or yard sales — however, instead of the homeowner simply selling unwanted items, the goal is usually to get rid of all or most of the contents of a home. These sales generally happen after a major life event, such as death, divorce, or bankruptcy. Generally, the sale is facilitated by the homeowner’s family members or a professional estate sale organizer.
Usually, prices for these sales are set, but the sale’s facilitator may be open to negotiation if you arrive during the last few days or hours of the sale. Their goal is to liquidate quickly instead of maximizing the value of their sales in most cases, which you can leverage to get inventory for your thrift store at an affordable price.
6. Auctions
Local weekly auctions are another place for thrift stores to get their inventory. You don’t have to limit yourself to only searching for valuable pieces, either — some auctions offer box lots or tray lots for bidding. These are groups of items placed in either boxes or trays, which you can sort through to find items in good condition that you can sell at your store.
Additionally, if you have the storage space and means to transport them, furniture pieces can be very profitable. Many people who attend auctions won’t be able to transport furniture, so you’ll have less competition for bidding, resulting in cheaper item prices.
7. Wholesalers
Wholesalers buy goods in bulk from manufacturers or distributors and then sell them in smaller quantities to retailers — you can think of them as middlemen between you and the manufacturers. The main benefit of purchasing from a wholesaler is that their items are generally offered at a lower price, so retailers can still make a profit. It’s a great way to acquire a lot of inventory in one go.
Generally, wholesale goods are bundled together based on type or brand, so it’s easy to stock up on a category of items your store is running low on. However, with this option, you have limited agency over what you receive, so be discerning and work with wholesalers that offer products your community would be interested in.
8. Abandoned Storage Units
When someone fails to pay for their storage unit, it's declared abandoned. The property managers may then seize and sell or auction the items in the unit to recoup lost rental fees. Some open up the units and auction the items individually, while others auction sealed storage units so no one knows what’s in them.
Storage units are rented for various reasons — making the moving process easier, housing seasonal items, freeing up space, or storing items the owner hasn’t decided what to do with yet. As a result, a thrift store can obtain a wide variety of items from abandoned storage unit sales or auctions, usually at very low prices.
9. Business Liquidation
When companies go out of business or close down specific locations, they might liquidate the items they have to recoup costs or minimize losses. They might sell or auction their items, and your thrift store can profit from the lower prices.
Of course, not all business liquidations will have items that your thrift store can or wants to sell. For example, a farm liquidation full of specialized equipment probably won’t have items your thrift store can easily sell. However, a small jewelry business liquidation may yield plenty of accessories that your store can easily turn around.
10. Dead Stock
Dead stock, also known as obsolete inventory, refers to items that are unlikely to be sold and have remained in a warehouse or store for a long time. This is bad for businesses, as this stock takes up space that could be filled with better-selling items, resulting in lost revenue. At some point, the business may cut its losses and sell its dead stock at a massive discount.
This is a great way to get new, unused items for your thrift store, as dead stock has never been purchased by a consumer.
11. Other Thrift Stores
If your thrift store has a specific focus or is highly curated, shop other thrift stores for deals and sell those items for a higher price at your store. Some stores may have valuable items priced very cheaply, since they may not be as familiar with them. As you know more about your thrift store’s niche of items, you can easily identify when an item is mispriced and snag it for cheap.
Thrift Store FAQs
Now that you know where thrift stores get their inventory, let’s answer a few common questions about the thrift store business and inventory management.
Is owning a thrift store profitable?
As the value of the secondhand market in the U.S. alone is projected to reach $82 billion by 2026, it’s clear that thrift stores have the potential to be highly profitable. The rapid industry growth can be attributed to several factors, most notably a generational shift in consumption. Younger consumers often care deeply about sustainability and are strongly influenced by it when making purchases — in fact, 83% of consumers consider sustainability a key factor in their buying decisions.
Owning a thrift store can be extremely lucrative, especially if you source items from donations, as this reduces the money you spend on inventory. Plus, this opportunity isn’t limited to the for-profit sphere. Nonprofits can start their own thrift stores to generate a sustainable and reliable revenue stream that supplements their other efforts to raise the funds they need to impact their community.
What types of items should thrift stores sell?
Thrift stores can sell a wide variety of items, including:
- Clothing
- Footwear
- Accessories
- Furniture
- Home goods
- Decorative items
- Electronics and tech
- Books and media
- Toys and games
- Seasonal items
And that’s just the tip of the iceberg — there are plenty of other niche items that you could sell. However, before you choose your offerings, consider your audience. The three main groups that thrift stores attract are:
- Deal hunters, who are looking to maximize the value they get from their purchases
- Nonprofit supporters, who want to support a nonprofit cause with their purchases
- Vintage item seekers, who are looking for unique, rare, or antique finds
To maximize the number of customers you get, make sure that your store offers items that cater to one or more of these three main audiences.
Additionally, consider how your thrift store will meet the needs of your community’s unique demographics. For instance, let’s say your store is in a college town. Students will likely make up the bulk of your customer base, most of whom don’t have the funds to purchase expensive items. Plus, since they’ll likely be moving around year-to-year, they usually aren’t looking for large items that will be a hassle to move. In that case, you might consider selling apparel-based items and smaller home decor to appeal to their interests.
How do I choose where to get my inventory?
We’ve given you a ton of options for where thrift stores can get their inventory. If you need help narrowing the list down to a few sources that work best for you, consider the following factors:
- Available funds. If your thrift store has very little to no funding available, then your best bet is to source inventory through donations or consignment. You may also be able to snag deals from other thrift stores and flea markets.
- Available time. If you have the time to comb through yard, garage, and estate sales, these are great places to source inventory. You can also hunt through flea markets and purchase abandoned storage units for potential items to sell.
- Amount needed. If you need a large amount of inventory at once, such as when you’re just starting your thrift store, your best bet is to purchase inventory from wholesalers, business liquidations, auctions, and dead stock.
- Items you sell. If you’re looking for specific items, then check out all of the ideas we’ve listed above to get a sense of whether they offer what you’re looking for. Pinpoint the best inventory sources and frequently check back to find more stock for your thrift store.
It’s likely that you’ll need to go through a trial-and-error process before you settle on the sourcing methods that work best for you. Don’t put all your eggs in one basket at first — give your store time to sell stock and see what’s popular and what doesn’t sell well, which will help you refine your inventory sourcing strategy.
Do thrift stores keep track of inventory?
Like other retailers, thrift stores keep track of their inventory. This helps them:
- Manage finances. Knowing exactly what has sold helps thrift stores keep track of their gross revenue, helping them manage their finances and increase transparency.
- Optimize inventory. With management processes in place, thrift stores can stay informed about inventory going out of stock or being overstocked. This information empowers thrift stores to optimize their inventory to maximize revenue.
- Analyze prices. By reviewing inventory data, thrift stores can glean key insights about pricing and seasonal offerings that will help them boost profits.
- Improve customer experience. Thrift stores can keep popular items stocked and available and improve their store layout with inventory tracking, providing a positive purchasing experience for customers.
If your thrift store doesn’t already have an inventory management workflow, it’s well worth establishing one to experience the above benefits.
What software should thrift stores use to manage inventory?
Although managing inventory without software is possible, it’s very time-consuming, requiring a lot of paperwork, thorough labeling, and frequent stock audits. That’s why most thrift stores use inventory management software to streamline and automate the process. These systems include features such as:
- Real-time inventory tracking. Always stay on top of your inventory needs with real-time information about what’s in stock or out of stock.
- Stock alerts. Set inventory alerts when inventory levels fall below a predetermined threshold to keep your most popular items in stock and ready for customers to purchase.
- Barcode scanning. Don’t worry about manually counting the items you have in stock. With barcode scanning, your inventory management system will automatically track when items are purchased and remove them from your inventory.
- Reporting and analytics. Glean key insights about your inventory, including your most popular and least popular items, to make data-driven decisions that positively impact your thrift store’s revenue.
- Integrations. Inventory management software usually integrates with point of sale (POS) systems for a streamlined inventory tracking experience. Particularly robust software may also integrate with e-commerce platforms to unify tracking between your brick-and-mortar and online stores.
If you’re not interested in purchasing a standalone inventory management system, all-in-one thrift store software solutions usually include inventory management features alongside plenty of others. ThriftCart is one such solution — explore our dedicated inventory management features here!
Additional Resources
When it comes to sourcing inventory for your thrift store, the world is your oyster. Explore your options and give a few sourcing methods a try to figure out what works best for you. You may be pleasantly surprised at which sources provide popular, easy-to-sell items that your customers love.
If you’d like to learn more about running a thrift store, check out these resources:
- How To Open A Thrift Store: The Ultimate Step-by-Step Guide. Ready to open your first thrift store? Explore our guide to learn everything you need to know.
- Thrift Store Pricing: How To Be Affordable and Profitable. Not sure how to price your thrift store’s items profitably? Discover top tips and tricks here.
- Best POS Systems for Thrift Stores: Our Top Picks. In addition to inventory management software, point of sale systems are another great investment for thrift stores — learn about top options in this article.
