Opening A Consignment Store Business

Things To Consider Before Opening A Consignment Store Business

Starting a consignment store business is a thrilling business adventure if all the necessary steps are taken. If essential steps are skipped when starting a new business, this can be a stressful journey. Consignments shops are becoming increasingly more popular as individuals are now looking for ways to save money on high quality items due to a number of factors, such as a poor economical state.  Individuals are also becoming more “thrifty”, meaning upcycling is the latest rage for turning worn clothing into new and taking unwanted items and making them desirable.  As a result consignment and thrift stores are growing in popularity as consumers are adopting this “thrifty” way of life to save money and to embrace recycling.

Starting a consignment store business is a great way to jump on the recycling bandwagon.  In owning and operating a consignment shop you are directly contributing to the popularity of recycling and reusing. This process is also a great way for individual’s looking to make a few extra bucks to sell some of their brand name items and get a portion of the price the items are sold for.

It is essential before starting a consignment store business you must first understand what consignment means.  A brief overview of consignment can be defined as consigning goods to the consignee (the individual selling the items).  The consignor (the individual bringing the goods to be sold) agrees to the terms and conditions which include how much profit they will receive once the products are sold and the time period for how long the goods will remain for sale.  After the goods are sold the consignee and the consignor split the profit and the process is done.

Other things to consider when starting a consignment store business, include:

• The relationship is the consignor and consignee not the buyer and seller
• The consignor is entitled to all expenses in connection with consignment
• Consignee is not responsible for any damage to the goods
• Goods are sold at the risk of consignor

Ensure the Success Of Your Consignment Store Business

Before starting a consignment store be sure that you thoroughly understand the consignment process and have made a thought out decision to start this business.  Planning is everything when it comes to starting a new business.