Virtual Entrepreneur

Tips When Selling Through Consignment

By George Rodriguez - PowerHomeBiz:

Consignment opens a new sales outlet for your products, without the overhead, rent and other expenses of having your own store. Before you let others sell your products for you, know the steps to take to protect your business.

If you are looking for another sales outlet for your products, consider selling through consignment. Many retailers are accepting consigned goods, as this arrangement allows them to get inventory without shelling out their own cash.

Consignment allows you to sell your products without having to pay for rents, overhead, or salaries of people to staff the store. It also allows you to reach different locations and markets, and enables you to strengthen the quality of your brand.

It’s possible to make quite a bit of money consigning, particularly if you are selling more high-end pieces. By selling to individuals outright (through ads in papers, out of your trunk at work etc), you may be able to do better, but the work and expense involved often is not worth it.

In consigning your products, you are basically lending your products to the retail storeowner. The retailer displays your wares and includes them in their line of products. If the merchandise sells, the store owner pays you less the agreed percentage and other costs. The percentage share of the retailer ranges from 25 to 50%, depending on the store and the type of merchandise.

However, before you go into consignment, you should take note of the following…