How thrift stores are adapting to the rise of the online re-seller

Selling used clothing, shoes and other tchotchkes on websites such as eBay, Poshmark or Facebook Marketplace has becomede rigeurin the modern internet economy, with those sites serving as the digital version of the traditional second hand store.

But one thrift shop in Calgary is pushing back against a new trend ofindividuals re-selling the secondhand goods they purchased in store and then listing them online with asignificant price markup for personal profit.

The trouble for 17th Avenue Thrift wasonline "re-sellers" would come into the store and purchase a large number ofitems at typical thrift store prices in the single digits. They would then list those items for double or triple-digit prices online.

"I've noticed that some re-sellers, not all of them they would come in and they wouldjust absolutely clear me out of everything thinking they're doing me a favour. But they're really not," said 17th Avenue Thrift owner Sue Ghebari in an interview with CBC Radio'sThe Cost of Living.

"When you're buying all those fantastic pieces that I have priced below market value, you're leaving me with nothing for my regular customers. They don't have a reason to come in at that point."

As a charity shop that accepts donations, and donates store proceeds to local animal shelters, Ghebari's retail operation cannot justify charging the same prices as re-sellers can get away with online.

According to Ghebari, she cannot price items at the same high level in her store. They would not sell in that context.

So, Ghebariimplemented a new policy. Online re-sellers would be limited to two items from her store per transaction, with the only enforcement being the honour system. The pushback has been minimal.

"I have had reallyjust some very positive feedback, and a lot of support from the re-sellers themselves expressing that they respect that I've put up these boundaries and they understand where I'm coming from," said Ghebari.

Ghebari's store relies on donated goods to both operateand facilitate its own donations to local charities.

When asked why she just doesn't play the re-selling game herself, she said there isn't enough staff time and resources to do that without compromising the store's mission.

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"I feel that the purpose of our shop is that things generously donated to us, we turn around and sell [them], pay our bills, pay our overhead, pay my staff as close to a living wage as I can.The rest goes to animal rescues and shelters. I just feel that setting up an online account, it's maybe just a little too too much for me to take on," said Ghebari.

Re-selling can get you cash but it's not fast or easy

The art of re-selling thrift store bargains online is old hat forAghogho Oyearone. It's a lot more than just buying cheap goods in a store and re-selling them online though. The full-time accountant and mother of twospends enough time on what she called her "side hustle" to make it a second job.

"Each day, I spendmaybe four to five hours, like when my kids are going to bed, I try to pack things and I try every night, at least to find a new thing [to sell online]," saidOyearone, who lives in Sherwood Park, Alta.

As an accountant,Oyearoneis careful with financial figures and didn't have specific numbers on her 2021 sales. But she estimated that she net anywhere from $25,000 to $30,000 profit on $50,000 of sales. Expenses for re-sellers include transportation and shipping costs.

The profit she makes isall from re-selling goods she finds for cheap, or for free,on Facebook Marketplace or in thrift stores.

Item limits, like the one at Calgary's 17th Avenue Thrift, aren't a concern for re-sellers likeOyearone and her friends. They target individuals giving away or selling items themselves, or the larger institutional second hand shops.

"I go to more the ones I know that are for profit, which is Value Village. Don't think it's like some charity organization, they are hustlers just like me. They are also hustling," saidOyearone.

Even empty boxes sell! (If they are Tiffany boxes)

One example of a hefty profit forOyearone was a batch of empty, blue jewellry boxes from Tiffany & Co.

A woman was offering them on Facebook Marketplace for free, andOyearone took advantage.

"Itwas someone who was giving it away on Facebook I asked that, please, is this available? Can I come pick it up? And she's like yeah, please come take it off my hands," said Oyearone.

After some quick research on eBay,Oyearone realized empty Tiffany boxes were selling for just under $20. Five free boxes, minus the cost of gasoline and time, net her some easy profit.

This type of effort and research is why re-sellers likeOyearonebelieve the thrift stores need them. Shops such as Value Village or Goodwill cannot put this level of effort into researching prices and marketing donated items.

"If reselling was easy, they'll be doing it just the way we're doing it.But they can't do it the way we're doing it,because we put in work into the picture taking, the shipping. Stuff like that, they can't do. That's why they're not doing it. So it's a win-win, right?" saidOyearone.

Goodwill has goodwill toward resellers

That message is echoed by one of the heavyweights in second-hand sales.

"It contributes to our mission, it's a win-win for everybody," said Doug Roxburgh, manager of marketingfor Goodwill Industries of Alberta.

Roxburgh toldThe Cost of Livingthere's no trouble with re-sellers taking advantage of Goodwill's product offerings.

"Power to them," said Roxburgh, who represents a chain of non-profit thrift stores operating across Alberta.

Goodwill even sells items by weight (as in, per kilogram or per pound) at one of their locations in Edmonton and said the company is fully aware re-sellers visit and take advantage.

$90 for a motorized mattress remote

That's good news for re-sellers likeAghogho Oyearone, who relieson keeping an eye on all the stores she can. She even has a group WhatsApp chat with her fellow re-sellers to flag opportunities.

"Weuse the word BOLO. Be on the look out."

When asked to share some of her trade secrets,Oyearonementioned hitting up thrift stores in the United States while on vacation.

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"Seattle, those rich areas. Silicon Valley. I go to those thrift stores," she said.

But there's a local spot she checks as well: St. Albert, Alta.

"Oh, St. Albertis fancy. Sherwood Park too. But you never know, you can find a hidden gem in the nastiest of places just by having an open mind."

As for the itemthat can make the most money? Apparently, it's the remote controls for Sleep Number beds.

"If you can find those remote controls, well, those are money...because some people throw them away when they are getting their beds. You can sell them for $90," saidOyearone.

Written and produced by Anis Heydari.
Find him on Twitter @RadioAnis or email anis@cbc.ca.