April 19, 2023

Designer handbags are a highly desirable accessory that often come with a steep price tag. While investing in a designer bag can be a smart financial commitment, there may come a time when you want to part ways with it. Perhaps you’re looking to make some extra money or want to make room for a new addition to your collection. Whatever the reason, there are numerous ways to resell your designer handbag. From online marketplaces to consignment shops, the options available can be overwhelming.

That’s why we’ll delve into the various avenues available to you, the pros and cons of each option, and provide helpful tips for optimizing your reselling strategy. Whether you’re a seasoned reseller or a first-time seller, this guide will equip you with the knowledge you need to make an informed decision on how to best resell your designer handbag. So, let’s dive in!

Consignment

If you’re considering reselling your designer handbag, consignment is a popular option worth exploring. Consignment shops provide a convenient way to sell your designer handbag without the hassle of managing the sale yourself. By partnering with a consignment store, you can tap into their established customer base, professional marketing strategies, and expertise in pricing and selling luxury goods. 

We’ll take a closer look at consigning as a reselling strategy for designer handbags. We’ll also explore the benefits and drawbacks of consignment, what to expect when working with a consignment store, and how to optimize your consignment experience to get the most out of your designer handbag sale.

What is luxury consignment?

Consignment is a term used to describe a business model where a consignor entrusts their products to a consignee, who then sells the products on their behalf. The consignor is typically the owner of the goods, while the consignee is the seller.

How does it usually work?

The consignor and consignee enter into a consignment agreement that outlines the terms and conditions of the arrangement. The consignment model is commonly used in the resale industry, making it a popular avenue to resell. In these types of stores, the owner of the handbags will allow the store to sell them for a percentage of the sale price, and the owner will receive the remainder.

Luxury consignment is a mutually beneficial arrangement for both parties involved. For the consignor, it offers an opportunity to sell their products without the hassle of managing a storefront or online presence. This is especially beneficial for those who have limited resources or do not have the time to sell their products themselves. Designer consignment allows them to reach a wider audience and benefit from the consignee’s existing customer base.

What are the pros and cons?

Pros

No upfront costs: Consignors do not need to pay upfront costs for renting a storefront or building an online presence to sell their products. Instead, they can rely on the consignee’s existing infrastructure to showcase their designer bags and attract potential buyers.

Wider audience: By partnering with a consignee, consignors can access a broader audience and increase the visibility of their products. This can be especially beneficial for those who do not have a large social media following or a substantial online presence.

Reduced risk: Since consignors are not required to purchase or own a storefront, they are not responsible for overhead costs such as rent, utilities, or insurance. This reduces their financial risk and allows them to experiment with new products or markets without committing to a long-term lease.

Cons

Lower profit margins: Consignors may receive a lower percentage of the sale price than they would if they sold the products themselves. This is because the consignee takes a commission for their services and covers expenses such as marketing, staffing, and store maintenance.

Lack of control: Consignors may have less control over how their products are marketed and displayed in the store. This can be frustrating if they believe the consignee is not presenting their products in the best possible way or at the best price.

Potential for depreciation: Most designer consignment stores include terms for depreciation in the event the item or items sit on their shelves beyond a certain amount of time. For example, after a certain number of weeks a store may have a policy to reduce the selling price to try to entice buyers, meaning a reduced payout to the consignor in the end.

Optimizing your luxury consignment strategy

The best way to optimize your luxury and designer consignment strategy is to do research on the plethora of options available! There’s online designer consignment as well as brick-and-mortar stores, each with their own advantages and disadvantages.

Each luxury consignment shop will set their own prices and rates, based on overall market trends as well as their specific client base, and the prices their clients are willing to pay for designer goods. This means the quotes and contracts you will receive shop-to-shop will vary. Additionally, not all shops have equally rotating inventory, meaning some shops sell items faster and more efficiently than others. 

This takes time and research to get a good understanding of these factors, which is where OpenLuxury’s Sell comes in! Launching later this year, Sell will take all of the guesswork out of the designer consignment process. Click here to learn more!

Buy-now

Selling to stores that offer to buy your designer handbags outright can be an attractive reselling strategy for those looking for a quick and easy transaction. With this option, you can bypass the hassle of creating a listing, taking photos, dealing with potential buyers, or the waiting involved in other resale avenues. 

Instead, you can simply bring your designer handbag to the store (or send photos), and if they’re interested, walk away with cash in hand. Now let’s take a closer look at this reselling strategy, including the pros and cons, what to expect in a buy-now offer, and tips for maximizing your payout. So, if you’re considering selling your designer handbag to a store, read on to learn more.

What is buy-now?

A buy-now (also known as an instant-quote) resale store is a reselling option that allows customers to sell their used designer bags for cash on the spot. Unlike more traditional consignment shops, where luxury handbags are sold on behalf of the owner for a percentage of the sale price, buy-now resale stores offer an immediate payout for the items they purchase. These stores typically accept a wide range, including clothing, handbags, and accessories, and use automated systems to quickly assess the value of each item and make an offer to the customer. 

The convenience and speed of the process have made instant-quote resale stores increasingly popular in recent years, particularly among younger consumers looking for a quick and easy way to earn money from their unwanted possessions.

How does it usually work?

Buy-now is pretty similar to the pawn shop model, and often includes them, depending on their particular niche. Some buy-now options have smartphone apps, and some use brick-and-mortar kiosks to physically inspect and authenticate the luxury handbags and accessories you’re selling.

Typically there is a condition and authentication inspection involved, before the store will offer their buyout price in either cash or store credit. This buyout price is the total amount you will receive for selling your luxury accessories.

What are the pros and cons?

Pros

Quick and easy: Buy-now resale stores offer a convenient way to sell designer handbags quickly, without the hassle of creating listings, negotiating with buyers, and waiting for payment.

Immediate payment: Unlike traditional consignment shops, which pay sellers only after their items sell, instant-quote resale stores offer an immediate payout for the items they purchase.

Cons

Lower payouts: Instant-quote resale stores generally offer lower payouts than selling items through other options, since they need to make a profit on the resale of the items they purchase and assume all upfront risk and costs associated with selling your items.

Limited control over pricing: The seller has limited control over the pricing of their items, since the store sets the price they are willing to pay based on their own valuation system.

Optimizing your selling strategy

Optimizing your selling strategy for buy-now or instant-quote venues is similar to consignment shops: do your research! Because buy-now resale stores assume all the upfront risks and costs associated with resale, they tend to have their own pricing models based on internal data, so pricing can vary dramatically from place to place.

Additionally, if you’re truly looking to maximize your return on investment, this may not be the best option for you. If you’re looking for convenience and ease in the selling process, this probably is going to be your new favorite way to resell luxury handbags and accessories!

If you want to take advantage of all the options available, that’s where OpenLuxury’s Sell comes in! Launching later this year, Sell will take all of the guesswork out of the luxury resale process. Click here to learn more!

Auction

Selling your designer handbag at an auction house can be an exciting and potentially profitable reselling strategy. Auction houses offer a platform for your designer handbag to reach a wide audience of potential buyers, including collectors and fashion enthusiasts. 

However, this reselling strategy requires a bit more strategizing than some of the other options available. In this section, we’ll explore the ins and outs of selling your designer handbag at an auction house, including the benefits and drawbacks, how to choose the right auction house, and tips for getting the best price for your luxury handbag. If you’re curious about selling your designer handbag at an auction, keep reading to learn more.

What is an auction?

A luxury handbag auction is an event where some of the most coveted and exclusive designer bags are up for grabs to the highest bidder. These auctions typically feature bags from iconic brands such as Hermes, Chanel, and Louis Vuitton, among others. The bags up for auction are often rare and difficult to obtain, making them highly sought after by collectors and fashion enthusiasts alike.

Luxury handbag auctions are held by renowned auction houses such as Christie’s, Sotheby’s, and Heritage Auctions, who have a reputation for offering exceptional and high-end products. These auctions attract buyers from all over the world who are willing to pay top dollar for their dream handbag. The luxury goods on offer are carefully selected for their rarity, quality, and craftsmanship, and often come with a hefty price tag. 

The bidding process can be fast-paced and exciting, with auctioneers taking bids from multiple sources, including phone and online bidders. Luxury handbag auctions offer an opportunity for individuals to own a piece of fashion history and add a highly coveted designer bag to their collection.

How does it usually work?

Typically the process begins with an appraisal well in advance of the auction date, either over email or in person. An appraisal and authentication expert will meet with you and discuss an appropriate auction estimate for sale (typically a price range), along with any applicable reserves (the guaranteed minimum price to start the bidding). 

Once the expert has completed the initial valuation and inspection and all parties agree to the terms of sale, they will take in the items to begin the cataloging process. Auction houses typically photograph the items and create a listing entry to be included in the auction catalog book (or online). The auction house will keep the items in their possession until the auction date and the sale has ended, in order to effectively market the auction and the items included in the sale to their clients.

After the auction has passed, the auction house will clear payments to consignors whose items have sold. The unsold lots will be returned to their respective consignors, or rolled into the next auction depending on the agreed terms.

What are the pros and cons?

Pros

High potential sale price: Auctions attract serious buyers who are often willing to pay top dollar for rare and coveted items like luxury handbags and accessories.

Wide reach: Auction houses often have a global reach, which can expose your handbag to a larger pool of potential buyers than if you were to sell it independently.

Convenience: Auction houses handle all aspects of the sale, from marketing the item to collecting payment from the buyer, which can be a hassle-free way to sell a high-value item like a luxury handbag.

Cons

Commission fees: Auction houses typically charge a commission fee, which can be a significant percentage of the sale price and can eat into the seller’s profits.

Uncertainty of sale price: While auctions can result in high sale prices, there is also the risk that the designer bag may not sell at all or sell for less than expected, which can be disappointing for the seller.

Limited control: The seller may have limited control over the sale process, including the timing of the auction and the reserve price, which may not align with the seller’s preferences.

Optimizing your auction strategy

Typically this option is reserved for luxury handbags that have high resale value, and typically only from the top tier designers: Hermès, Chanel, Louis Vuitton, and only select designer bags from other luxury brands. If your bags match that description, an auction may be your best available option to rake in the maximum value!

The most important thing to keep in mind when it comes to auctioning off your designer handbags and luxury accessories is how volatile it can be. Remember that your estimates are just that, and are not guaranteed ranges of sale. Additionally there is no guarantee that your handbag or accessory will even sell, so it’s important to have appropriate expectations and ask the expert you are in contact with about any questions you may have about your handbags, the auction house itself, or the process involved in selling your bags.

If you want to conveniently see all of your auction estimates for side-by-side comparison, OpenLuxury has the service for you! Launching later this year, Sell will take all of the guesswork out of the luxury resale process. Click here to learn more.

Peer-to-peer

If you’re looking for a reselling strategy that offers a wide audience and the potential for a higher payout, selling to peer-to-peer websites may be the way to go. These platforms have become increasingly popular in recent years, offering individuals the opportunity to sell their designer handbags directly to other consumers.

While this option requires a bit more effort than selling to a store that buys your handbag outright or on consignment, it can also result in a more percentage return on investment. We’ll explore the pros and cons of selling through peer-to-peer websites, as well as tips for optimizing your listings and getting the most out of your designer handbag sale. So, if you’re interested in selling your handbag on a peer-to-peer website, keep reading for all the details.

What is peer-to-peer?

A peer-to-peer (P2P) marketplace is an online platform that connects individuals who wish to buy and sell luxury handbags and accessories. In a P2P marketplace, buyers and sellers can directly transact with each other, cutting out the middlemen that traditional marketplaces often have. This type of marketplace is becoming increasingly popular, with platforms like eBay, Depop, and Vestiaire Collective being some of the most well-known examples.

In a P2P marketplace, buyers and sellers are both considered peers, and they interact with each other on a level playing field. Sellers can list their products, and buyers can browse and purchase them directly from the seller. This model allows for more personalized and unique offerings as sellers can tailor their products to their specific target customer.

How does it usually work?

Selling a designer handbag on a peer-to-peer marketplace is a straightforward process, but it requires some effort and attention to detail. Typically, the first step is to create an account on a popular peer-to-peer platform. Once you have an account, you can begin the process of listing your designer handbag for sale. This process usually involves uploading a few high-quality photographs of your handbag, including images of the interior, exterior, and any tags, labels, or condition issues that might be present. You will also need to provide a detailed description of the item, including the brand, style, material, and any notable features or defects.

Once your listing is live, potential buyers will be able to see it and make offers or ask questions. You will need to be responsive to these inquiries and be prepared to negotiate the price of the item if necessary. When a buyer decides to purchase your handbag, you will need to arrange for shipping and payment. Most peer-to-peer platforms have built-in shipping options, and you can choose to use a shipping service of your choice as long as it provides tracking information. Payment is typically handled through the platform’s payment system, which may take a small percentage of the sale price as a fee.

What are the pros and cons?

Pros

Access to a large audience: Peer-to-peer marketplaces often have a large user base, which means your designer bags have the potential to reach a wider audience than if you were selling locally.

Low overhead costs: Unlike opening a physical store or even an online store, selling on a peer-to-peer marketplace requires little to no overhead costs. You don’t have to worry about rent, utilities, or hiring staff.

Flexibility: You can sell on a peer-to-peer marketplace on your own schedule and at your own pace. This makes it an ideal option for those who are looking to sell items part-time or as a side hustle.

Opportunity for extra income: Selling designer handbags and accessories on a peer-to-peer marketplace can be a great way to earn some extra cash, particularly if you have items that are in high demand.

Cons

Fees: Most peer-to-peer marketplaces charge fees for listing items and/or taking a percentage of the sale price. This can eat into your profits, particularly if you’re selling items that are priced lower.

Competition: With so many sellers on a peer-to-peer marketplace, it can be difficult to stand out from the crowd. You may need to price your items competitively and/or offer promotions to attract buyers.

Limited control: You don’t have complete control over the transaction process on a peer-to-peer marketplace. The platform may have rules and policies that you must follow, and there’s always a risk of fraudulent activity from buyers.

Shipping and handling: As a seller, you’re responsible for shipping and handling the item once it’s sold. This can be time-consuming and requires you to have the necessary materials on hand. Additionally, there’s always a risk of damage or loss during transit.

Optimizing your peer-to-peer strategy

It’s important to note that selling a designer handbag on a peer-to-peer marketplace can be competitive, and it’s important to price your item fairly and competitively to attract potential buyers. You may also want to consider offering free shipping or running promotions to help your listing stand out from the crowd. Overall, selling a designer handbag on a peer-to-peer marketplace can be a great way to earn some extra cash while decluttering your closet. However, it’s important to be diligent in your listing and responsive to potential buyers to ensure a successful sale.

OpenLuxury

Selling your designer handbag through OpenLuxury is not only a convenient way to part ways with your accessory, but it can also help you sell it for more money. By tapping into OpenLuxury’s network of resale partners, you can fetch more quotes faster than you would submitting to a bunch of websites and brick-and-mortar shops individually. It’s the best of all worlds, while avoiding the downsides!

Now let’s dive deeper into how OpenLuxury can help you sell your handbag for more money, including the factors that can affect the value of your handbag. So, if you’re looking to maximize your payout when selling your designer handbag, keep reading to learn more about how OpenLuxury can help.

What is ‘Sell’ by OpenLuxury?

Sell is an upcoming service being launched this year, which aims to help you get the most money for your luxury bags and accessories by fetching multiple quotes from our network so you can side-by-side compare and choose the best offer available!

This means no more shopping your bag around to different shops or sending photos to multiple places. We do the work for you, and return a result so you can easily select the best quote without lifting a finger.

How does it work?

Using Sell is easy! Just create an account at openluxury.io, fill out the form and upload some photos of your designer handbag or accessory. In three days or less, we’ll get back to you with quotes from at least three resale partners (usually more) who want to buy your item.

OpenLuxury optimizes your selling strategy for you

There’s no need to research the market, prepare listings, meet with anyone, or be unsure of exactly what you’re getting into with Sell. All of that gets avoided, and you get a simple way to sell each handbag, guaranteeing you’ll get the best deal out there.

So, how will you resell designer handbags?

Reselling a designer handbag can be a lucrative way to earn some extra cash or make room in your collection for new pieces. With the multitude of options available, it can be challenging to know which avenue is best for you. By weighing the pros and cons of each option and optimizing your reselling strategy, you can maximize your return on investment.

Whether you choose to sell your designer handbag online, through a consignment shop, or to a reseller, be sure to do your research and take the necessary precautions to ensure a smooth and successful transaction. With the tips provided, you can confidently navigate the reselling process and get the most out of your designer handbag.