Consignment vs Peer-to-Peer Resale: The two dominant resale business models compared

Consignment vs Peer-to-Peer Resale refers to the fundamental structural divide in secondhand fashion platforms. Consignment models (used by The RealReal, ThredUp) involve sellers shipping items to the platform, which handles photography, pricing, storage, authentication, and fulfillment, taking a commission (typically 20 to 80 percent depending on item price). Peer-to-peer models (Vinted, Depop, Poshmark) let sellers list and ship directly to buyers, with the platform providing marketplace infrastructure and taking smaller fees (usually 10 to 20 percent). The distinction determines capital requirements, scalability, quality control, and unit economics. Consignment demands significant upfront investment in warehousing and operations but offers consistency and brand control. Peer-to-peer requires less capital and scales faster but sacrifices quality oversight. Many platforms now blend elements of both, offering managed services alongside direct selling options to optimize margins and seller experience.