How to Start a Thrift Store: A Step-by-Step Guide for Beginners

Starting a thrift store might seem overwhelming at first, but once I understood how to structure it like an actual ecommerce business, everything started clicking.

Whether you're planning to launch a niche vintage boutique, an online consignment shop, or a general secondhand store, this guide will walk you through every step I followed to set up a profitable thrift store online.

I'll cover sourcing, pricing, platforms, legal requirements, inventory systems, and even marketing strategies.

If you're looking for a side hustle or full-time resale business, here’s how I built mine from scratch—without needing massive upfront investment.

Why Start a Thrift Store Now?

I started my online thrift store during a time when the cost of living was going up and people were hunting for deals.

I saw the shift in buying behavior—especially among Gen Z and millennials—where people preferred unique, affordable, and sustainable pieces instead of buying new.

That’s when I realized there was real money to be made in reselling secondhand goods.

Here’s why this is such a good time to start: Online resale is projected to hit $350 billion by 2028, growing faster than traditional retail. Platforms like Poshmark, Depop, and Shopify make it easy for anyone to start selling online. Thrifting is sustainable, low-cost, and driven by real demand. You don’t need to buy inventory wholesale or risk being stuck with unsold product. Thrift stores are no longer just local businesses

Running a thrift store used to mean having a physical shop, dealing with lease agreements, and hiring staff.

Now I do everything from home—photographing inventory, uploading listings, handling shipping, and running social media accounts to bring in sales. I don’t pay rent, and my margins are much higher.

Go to the top Step 1: Choose a Niche and Target Customer

The most important decision I made early on was choosing a niche. Instead of selling everything, I focused on what I knew best and what people were actively searching for.

Here are some popular thrift niches to consider:

Niche TypeExamplesWhy It WorksVintage fashion90s/Y2K streetwear, Levi’s denim, band teesHigh demand, nostalgic valueBaby & kids itemsBaby clothes, toys, booksParents love discounts on fast-growing kidsDesigner resaleHandbags, shoes, luxury apparelHigher ticket items, big marginsHome decor & furnitureVintage mirrors, lighting, small furnitureSells well locally and on EtsyBooks and mediaVintage books, records, DVDsLightweight to ship, low cost to source How I picked my niche

I chose vintage streetwear because I already knew the brands and styles people wanted. I also noticed it sells fast on platforms like Depop and Grailed.

If you're new, I recommend picking a niche you're familiar with and enjoy—because you'll be sorting through a lot of inventory and fielding questions from buyers.

Go to the top Step 2: Sourcing Inventory

This part took time to figure out. I made the mistake of only buying from Goodwill at first, but once I started sourcing smarter, my profits improved fast.

Where I find inventory: Estate sales – These are great for vintage items, furniture, and books Facebook Marketplace – I pick up lots from people who are downsizing or moving Storage unit auctions – I’ve landed bulk inventory for pennies on the dollar Flea markets – Always a hit-or-miss, but sometimes I find hidden gems Thrift stores – Still valuable, especially on discount days or with coupons Charity shops – Many have donation deals or exclusive items What I look for: Brand labels – Vintage Nike, Levi’s, Champion, Patagonia, etc. Condition – Gently used, no major damage, ideally clean and ready to ship Uniqueness – Graphic tees, limited runs, discontinued styles

When I’m out sourcing, I use the eBay and Depop apps to check sold listings before buying anything. That way, I know the actual resale value and don’t waste money on duds.

Go to the top Step 3: Legal Setup and Business Basics

Even if you're just selling as a side hustle, it’s smart to treat your thrift store like a real business. I registered as a sole proprietor and eventually moved to an LLC for liability protection.

Basic setup checklist: Register your business – Start with your state’s Secretary of State website Get an EIN – Free from the IRS website, used for business banking and taxes Open a business bank account – Keeps finances separate and clean Check resale certificate rules – Allows you to buy items tax-free for resale Get liability insurance – Optional but smart if you sell high volumes or run pop-ups

This part was the least fun, but it saved me from tax headaches later. I also recommend using bookkeeping software like QuickBooks Self-Employed or Wave to track income and expenses.

Go to the top Step 4: Choose Your Selling Platforms

You don’t have to sell on just one platform. I started with Depop and eBay, then built my own Shopify store once I had consistent sales.

Platform comparison: PlatformBest ForFeesProsConseBayClothing, electronics, books~13%Huge audience, flexible shippingCompetitive, fee-heavyDepopVintage, Y2K fashion10%Great for Gen Z buyersLower average order valuePoshmarkDesigner & name brand clothing20%Easy to use, built-in shippingHigh feesEtsyHandmade or vintage decor6.5% + listing feesStrong for home items & furnitureLimited outside those nichesShopifyBuilding your own brand/siteMonthly + 2.9%+Full control, brand ownershipNeeds traffic + marketing

eBay is the OG resale platform with a massive audience and global reach. It works well for a wide range of categories, but the fees add up and competition is fierce.

Depop is perfect if you're targeting younger shoppers who love vintage and Y2K fashion. It's easy to use and highly visual, but the average sale price is usually lower than other platforms.

Poshmark is a go-to for fashion sellers focused on designer or name-brand items. The shipping is handled for you, but the 20% fee on sales can eat into your profits fast.

Etsy is ideal for vintage home decor, handmade items, and collectibles. It’s not great for clothing unless you’re selling truly unique or vintage pieces from before 2005.

Shopify gives you full control to build your own ecommerce brand. It’s powerful but requires effort to drive your own traffic, especially if you’re just starting out.

I recommend starting on one platform, mastering it, and then expanding. Once I had a Shopify store, I used a tool like List Perfectly to cross-post inventory automatically across multiple platforms.

Go to the top Step 5: Inventory Management

When I first started, I didn’t have a system. That led to duplicate listings, lost items, and messy returns. Now I use an inventory spreadsheet to track everything I source, list, and sell.

What I track: Item name Source (where I got it) Purchase cost Listing date and platforms Selling price Shipping cost Profit margin

Here’s a basic inventory example:

ItemSourceCostSell PriceFeesShippingProfitLevi’s 501 JeansGoodwill$8$55$7$6$34Vintage Nike HoodieEstate Sale$12$70$9$7$4290s Band T-ShirtFacebook MP$5$40$5$5$25

I keep all my inventory in clear bins with SKU labels. That way, when an item sells, I know exactly where it is and can ship it fast.

Go to the top Step 6: Pricing and Profit Margins

Getting your pricing right is everything. Price too high and nothing sells. Price too low and you kill your margins.

My pricing tips: Use sold listings on eBay or Depop to get a real idea of what buyers pay Factor in platform fees and shipping Bundle slow-moving inventory to increase average order value Leave room for offers – I price a little higher than my target profit

Typical profit margins for online thrift stores:

Product TypePurchase CostAverage ResaleProfit MarginT-Shirts$3–$7$20–$4060%–80%Jeans & Pants$8–$12$40–$7065%–75%Jackets & Outerwear$15–$25$80–$15050%–70%Home Decor$5–$15$30–$8055%–70%

I aim for a 60%+ profit margin on every sale. If an item doesn’t sell in 60 days, I either drop the price or relist it on another platform.

Go to the top Step 7: Shipping and Fulfillment

Once sales started coming in, I had to move quickly. Delayed shipping hurts reviews and repeat business. I created a simple system to ship items within 24 hours.

My shipping process: Use Pirate Ship for the cheapest USPS labels Weigh items with a $20 kitchen scale Use polymailers for clothes and recycled boxes for bulkier items Offer free shipping, but bake it into the price

I also include a thank-you note in every order. It’s basic, but it adds a personal touch that gets me 5-star reviews and return buyers.

Go to the top Step 8: Marketing and Growth

Once your store is up and running, you need to drive traffic. This is where most people stall—but I kept it simple and consistent.

What worked for me: Instagram Reels and TikTok – I post “thrift hauls” and “what sold” videos to build followers Email marketing – I offer a 10% off discount in exchange for emails on my Shopify store SEO blog posts – These bring in organic traffic over time. I write content like “Best Thrift Items to Resell” and “How I Made $1,000 Flipping Vintage Clothes” Facebook Groups – I joined resale communities and shared tips (not just self-promo)

The key is staying active, building trust, and reminding people you exist. I didn’t try to go viral. I just posted consistently and let word of mouth grow the brand.

Go to the top Final Thoughts

Starting a thrift store online isn’t just a side hustle anymore. With the right systems, sourcing, and strategy, it can become a full-time business.

I started mine with less than $200 and built it up into a sustainable, profitable ecommerce shop. There’s room in this space if you’re willing to learn, experiment, and treat it like a business from day one.

You don’t need fancy tools or a warehouse to start. You just need consistency, attention to detail, and a willingness to learn from the market.

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