How Do Op Shops Work? The Journey from Donation to Purchase (2026)

Op shops are a popular part of the Australian retail market. The op shop model is a circular process: they receive donated goods from the public, which are sorted and priced by volunteers, and then sold to customers to raise funds for a charitable cause.

This cycle allows organisations to fund their community work. From the moment you drop a bag of clothes into a donation bin to the point a shopper finds an item, every step is part of a method for social good. This guide breaks down the journey your donations take.

Step 1: The donation

The entire process begins with a donation from the public. As we defined in our guide on what an op shop is, these stores rely on freely given goods. People can donate in a few ways:

• In-store donations: Dropping off your pre-loved items at a local op shop during business hours.
• Donation bins: The metal bins you see in shopping centre car parks or outside stores.
• Collection services: Some charities offer to pick up large items like furniture directly from your home.

It’s important that donations are clean, in good condition, and suitable for resale. To understand what’s appropriate, read our upcoming guide on what not to donate to op shops.

Step 2: Sorting and processing

This is the most labour-intensive part of the process. Once donations are received, they are taken to a back room or a central sorting facility. Here, a team of staff and volunteers sorts through every item.

The sorting process involves:

• Quality control: Items are checked for damage, stains, or missing parts. Unsellable goods are separated for recycling or disposal. This is why donating quality items is so important.
• Categorisation: Items are grouped into categories like women’s wear, men’s wear, homewares, and books.
• Pricing: Volunteers and staff assign a price to each item. Pricing can be a complex task, especially when it comes to pricing designer goods, but most items are kept at affordable levels.

Step 3: Merchandising and selling

After being sorted and priced, the items are moved to the shop floor. This is where the retail happens:

• Stocking the shelves: Volunteers display the goods, keeping the store organised and well-stocked.
• Customer service: The team on the floor assists customers, manages the checkout, and keeps the shopping environment pleasant.
• Stock rotation: Most op shops rotate stock regularly (e.g., every few weeks) to ensure there is always something new to see.

Step 4: Reinvestment of funds

This is the final step in the cycle. Profits from the sale of goods are funnelled back into the parent charity. This money funds their community programs, from homeless shelters and disaster relief to youth work and aged care.

The work is made possible by a network of people, many of whom are volunteers. Their contribution of time and effort is why the impact of these organisations is significant. If you’re interested in helping, learn more about how to volunteer.

Ultimately, the op shop model is an example of community-powered sustainability, where your pre-loved items are transformed into help for those in need.