How Do I Sell a Product on Consignment?

Introduction to Consignment Stores

• Consignment stores sell goods for consignors who pay a fee for the service. They may sell furniture, clothing, or specific items.

Consignment Process and Benefits

• You bring items to shops to display and sell, splitting proceeds 50-50. Consigning is selling through a third party taking a commission.

Industry Overview and Profit Factors

• In 2018, the consignment industry generated $17 billion. Profit depends on revenue minus expenses.

Key Factors for Success

• Poor location can cause failure. Consider rent, overhead, demographics, habits, and patterns. Online shops in high traffic areas can be profitable.

Financial Considerations

• An online shop costs $2,500, a physical store costs $13,000. Owner salary averages $42,000 but varies.

Pricing Strategies and Display Tips

• Price items based on their condition. Popular items sell fast. Display neatly for easy viewing to convert traffic and turnover inventory.

Opportunities and Income Potential

• With passion and experience, consignment opportunities appeal. The income potential is unlimited given revenue and margins.