What is “buy outright”?
Buy outright is a resale model in which a store purchases inventory directly from sellers at the point of intake. The store pays a set amount upfront, takes ownership of the item immediately, and resells it at a markup. Unlike consignment, there's no revenue split after the sale: the store assumes all the risk and keeps all the proceeds.
How does buy outright work?
A seller brings items in. Staff evaluate them based on condition, brand, demand, and potential resale price. The store makes an offer—typically a fixed percent of what they expect the item to sell for—and the seller either accepts the offer or keeps their items. If they accept, the transaction is completed on the spot.
Most buy-outright operations pay sellers around 30–40% of the intended resale price in cash or store credit. Independent stores vary, but the logic is the same: the offer has to leave enough margin to cover overhead and turn a profit after the item sells.
Once purchased, the store prices, displays, and discounts the item however it sees fit, and keeps all the proceeds when the item sells.
Buy Outright vs. Consignment
The buy-outright model and the consignment model serve different sellers and create different dynamics for the store.
A seller who wants cash as soon as possible will likely prefer buy outright. A seller who wants to maximize their return and is willing to wait will generally do better on a consignment basis, assuming the item is likely to sell.
For the store, the tradeoff is control vs. risk. Buy outright gives stores full ownership and flexibility. They can discount aggressively, bundle items, or pull inventory whenever they want. The downside is that the store has also paid for everything in the stockroom, sold or not, meaning inventory costs are higher. Consignment shifts the inventory risk back to the consignor so that if something doesn't move, the store only loses floor space and labor—not the actual cost of the item.
Neither model is inherently better, and some hybrid resale stores successfully use both methods.
Buy Outright Best Practices
Price offers consistently. Develop a clear internal guide so staff can evaluate items quickly and fairly. Inconsistent offers erode seller trust and create friction at intake.
Know your resale market. Your offer is only as good as your read on what the item will actually sell for. Stay current on comparable prices: what similar items are selling for in your store, on online platforms like eBay or Poshmark, and in your local market.
Be transparent with sellers. Be able to explain how you arrived at your offer. Sellers who understand your logic are more likely to accept it and come back in the future.
Offer store credit as an option. Many stores offer a higher purchase price in store credit than in cash. It costs less out of pocket and brings the seller back as a customer.
Set clear intake criteria. Because you're buying outright, rejecting an item means you simply don't buy it, so there's no consignor relationship to manage. Use that freedom to keep intake standards high.
Common Buy Outright Mistakes
Overbuying without tracking sell-through. It's easy to acquire more inventory than your floor can move. Without a close eye on sell-through rate and days on shelf, you can end up with capital tied up in dead stock.
Paying too much to fill the floor. Urgency is the enemy of margin. Buying aggressively when inventory runs low leads to overpaying and margin problems downstream.
Inconsistent pricing after purchase. Once you own it, be strategic with the price. Stores that don't have a clear pricing strategy after intake often leave money on the table or hold items too long at the wrong price.
Ignoring the seller experience. Buy outright transactions are fast, but they're still relationships. A seller who feels low-balled and unheard won't return.