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What Is A Consignment Store?
A consignment store is a physical or online channel that holds onto your consigned items until they’re sold to a customer. They act as a third-party vendor, taking a percentage from each sale. Selling on consignment gives you all the benefits of a store without having to build one from scratch!
Physical vs Online Selling
Shopping online is convenient, but nothing beats the customer experience of a brick and mortar store! While you can post your products on websites, an actual in-store display means customers can walk-in and appreciate the items in person. Your goal should be to work towards both channels, so try to have enough inventory to cover a few purchases online and offline.
Selling On Consignment
Consignment can be a win-win situation! As a consignor, it helps you get noticed by potential buyers. As a consignee, the shop benefits from having an array of unique finds and one-of-a-kind pieces for their customers. Let’s break down the basics!
What To Sell
You can sell brand new products, pre-loved clothing, jewellery, used furniture, second-hand cars, and rare art. As long as the goods are authentic, high quality, and in great condition, you’ll find many stores willing to take them in! If you’ve got something of value, call up a local store and have an in-house evaluator authenticate your item. You can even propose a short trial period to test the market and start building a good business partnership.
The Contract
Now it’s time to figure out the details. Determine your stock agreement by discussing how many you’re trying to sell per design and at what price. The shop can take anywhere from 30% to 60% of the profits, so make sure you negotiate! Here’s a list of what to cover:
- Inventory
- Storage
- Profit Splits
- Payment Terms
- Returns
- Damages
- Insurance
- Handling fees
- Restocks
- Timeline
- Display
- Marketing
You can find lots of consignment contracts online for reference, but you can also consult a lawyer or check out LegalVision for help. If the store is making the contract, make sure you read everything and go through all the details before signing!
Payment Terms
Consignment deals are a low risk trade of services: they sell your stuff for free, and they get a slice of the pie. The shop pays you when the items sell, giving you a scheduled payout once or twice a month. However, consignees are not required by law to pay for stocks if they get stolen or damaged. Keep in mind that if your item is highly valuable, it helps to go with a shop that has insurance!
Exchanges Or Returns
If a customer isn’t happy with their purchase, you may need to stand by the shop’s exchange and return policies. So, make sure everything is clear on your end by inspecting for any damages before the turn-over. Whatever items don’t sell are simply returned to you after a certain time frame, depending on what’s stated in the contract.
Finding The Right Shop
The good news is there are a wide variety of shops to choose from! Aussies love a good thrift, which means consignment shops aren’t hard to come by. The toughest part is narrowing them down, so we’ve done our research and listed down some of the best consignment stores in Australia!
Designer Consignment
Fashion consignment allows you to sell anything from a few pairs of your sneaker collection to luxury brands! If you’ve got a designer bag or two that you’re willing to let go of, these shops will gladly take them off your hands:
Furniture & Antique Consignment
Brand new furniture can be crazy expensive, so some people prefer hand-me-downs for half the cost. Antiques are always popular with collectors, and your junk could be someone else’s treasure! Drop them off at any of these stores:
- Home Furniture On Consignment (HFOC)
- Furniture On Consignment Shop (FOC)
- Design Consigned
- House Of Home
- Antiques Wanted
- Southside Antiques
Auto Consignment
Car dealers all over the world have been using the consignment method to sell used automobiles. You can forget about the hassles of putting up ads online or in the paper! Selling your ride is as easy as driving it to these shops:
Art Consignment
To consign paintings and sculptures, you need to talk to galleries and auction houses. They appraise and authenticate your works of art, then sell them to the highest bidding art dealer or collector. You can inquire with these companies for more info:
Starting Small
Now you’re all set for your venture into consignment! Start small, and slowly work your way up. We’ve all gotta start somewhere, and selling limited-edition stuff can help you get the extra cash you deserve!
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