Yes, you can deduct the cost of purchasing items that you resell via consignment.
If you are handling the inventory, you would choose this option under the self-employment expenses. Keep in mind that you may need to scroll through the other expenses, and at the bottom click on the "Less Common Expenses" at the bottom of the page.
You should enter the total of sales in the Income Section, and then enter the expenses (including inventory) against the income.
Any sales taxes that you paid when purchasing your items should be included in its cost. For sales tax at the time you sold, you will need to examine the documents that the web site sends you. If you are being charged for the sales tax you should take it as an expense, if they are handling the sales tax on their side, you should leave it off the return.
You can find more information about self-employment here.
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