About Consignment Businesses
During tough economic times, consignment businesses are enjoying increased popularity. Running a store on consignment allows an owner to carry a wide range of merchandise without investing significant sums of money, while giving the consumer a way to make a little extra cash and purchase items at a fair price.
-
Definition
-
A consignment shop is a store that sells second-hand items through a process where the original owner of the merchandise retains ownership until it is sold. The shop does not pay outright to purchase the items. Rather, when the merchandise sells, the shop and the original owner split the profits at an agreed upon rate.
Benefits
-
Selling clothing to consignment stores is an excellent way to make a bit of extra cash from items that are no longer being used. Most consignment shops sell clothing, and many specialize in a specific type. Children's clothing stores are very popular, and many offer store credit to allow consignors to trade in their children's outgrown clothing for outfits in newer sizes. Consignment stores typically check over merchandise carefully to assure that it is in excellent, if not totally new, condition and sell the items at a substantial discount off of the original price.
Considerations
-
If you want to sell items around your home, there are several different routes that you can take, consignment being only one of them. You might choose to have a garage sale or to sell on an online auction site, such as Ebay, for example. However, taking your used clothing to a consignment store to sell might be a good choice for you if you don't enjoy negotiating with people or are uncertain of how to price items.
Types
-
Although technically a consignment shop is one that allows consignors to sell clothing while retaining ownership until the sale, the term is often used generically to refer to any type of second-hand store. Second-hand or thrift stores, however, differ from consignment stores in that they either buy or trade merchandise outright. In the case of thrift stores run by charitable organizations, donated items are sold.
Warning
-
It is easy to lose track of your merchandise and money when selling to consignment shops. Be certain that you keep an itemized list of the items that you have left at a given store, and discuss the payment policy in advance. At some consignment shops, checks are sent once per month for whatever has sold, while at others, payments are given when an account meets a certain amount (say $20). Typically, you will sign a contract outlining the terms of the sale and your merchandise will only remain in the store for a certain amount of time, after which--if it does not sell--you will be asked to pick it up or leave it to be donated to charity. If you want your items back, you must be responsible for keeping track of them.
-
