Previously I have written about Why Retail Arbitrage Doesn’t Actually Work (You’re spending way more money than you realize) when you drive from store to store to buy inventory from clearance racks, but today we are going to discuss obtaining inventory from Thrift Stores so you can decide if this method of “Hunting and Gathering” works for you.

PROS

1. Its really cheap, for the most part. Depending which thrift stores you go to you might be able to score some used, good quality Calvin Klein sweaters for $2 - $5 or some decent Victorias Secret bras for $1.50 - $4.

2. Many thrift stores do “Deal Days” where certain items are an extra 40% or more off. If you go on the right day you can knock the price of the merchandise down by a buck or two per piece.  Some thrift stores even do "Dollar Days" or Everything you can fit in this specific bag for $5 or $10. 

3. One of the biggest reasons people like to shop for their own inventory is so they know exactly what they’re buying and can inspect the merchandise before purchasing. They feel this guarantees that they will end up with only perfect items that they feel will sell quickly or for larger amounts. (BTW:  This is an absolutely TERRIBLE business practice, but for now we will leave it as a "Pro")

4. Some people, (typically women) just genuinely enjoy going out and hunting for inventory. Hey, if you can take your toddler out for a day and also get inventory, its a win-win, right?

CONS

1. The odor. Thrift stores have an odor that is unlike any other odor. I’m not even sure what specifically the smell is, but it’s not a nice smell. Of course you can launder the merchandise, but laundering is time and money. Alternatively you can deodorize the item (which we also have a blog post about), but this is also time and money. Additionally, if you are deodorizing, gone are the days of simply spraying it with Febreze because now so many people freak out about “Chemicals” and “Non-Organics”. Heck, when I started selling back in 2005 all people cared about was a “smoke free home”, then by 2007 they wanted “A smoke-free, pet-free home”. By 2010 they also wanted “nut free homes” and now they want to make sure it’s only laundered in organics. Sheesh… how much can ya ask for when you’re buying a used blouse for $6.99?!  Check out our blog posts about Removing Thrift Store Clothing Smells and  Advice on How to NATURALLY Deodorize Clothing

2. There is no way whatsoever to guarantee authenticity. You have no idea where the merchandise came from. This isn’t a big deal if you’re selling unbranded items but it can be a really big deal if you are selling designer brands. However, you can read our guide about Authenticity to help you tell if it’s legit. Regardless, being that you don’t know where it’s from, there’s no sure way to tell.

3. Hear me out on this one - if you always hand select the merchandise that YOU like, your buyer base will become only the people who have your same taste. This is very problematic long term because you’re literally losing out on sales to the majority of the population because we all have different tastes. Think about it, how many potential pieces of inventory do you pass up on at the store because you think it’s hideous? But your “hideous” is the next persons “gorgeous”. It took me a really long time to learn this.  Seriously, that "totally disgusting pea green pair of pleather pants" is someone elses "must have", but you will never know this because you choose to pass by them on the thrift store rack. 

4. Used items typically do not hold value like they used to because the price of things, in general, has decreased. Of course there are exceptions to this, but for the most part, if you shop at a thrift store you will be buying cheap things then selling them for cheap amounts. This isn’t necessarily profitable.  Think about it; if you pay $7 for a new hoodie that you can resell for $25, you are making more than if you pay $1 for a used hoodie and sell it for $8.99.  ALSO...

5. Like we discussed in the Why Retail Arbitrage Doesn’t Actually Work article; the time and costs of driving around to get inventory add up to incredible amounts. The more inventory you find, the longer it takes. The less inventory you find, the more of a bust the trip was. Whether you find a little or a lot you are incurring costs. And this doesn’t include the added steps of laundering or deodorizing.  However if you insist on thrift shopping, be sure to check out our article about Odor Removal. 

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