According to Merriam-Webster’s dictionary, “consignment” is defined as “the act or process of sending goods to a person or place to be sold.” The idea of consignment is essentially an agreement between a shop owner and a seller that stipulates when payment is made and what portions of the sale go to whom. In a traditional sales setting, a store owner, whether it is a brick and mortar store or a website, pays for items that they then add to their store for sale.
The Difference Between Straight Sale and Consignment
Consignment changes the way store owners add items and make money, as well as how sellers make money. In a consignment store the owner of the item offers a product to the store to sell, and waits until after the sale to get the money for it. How much it sells for can be agreed upon in advance, left up to the store owner, or in some cases be the result of an auction.
Once the item sells the original seller gets a percentage of the proceeds, and the store owner gets an agreed upon amount for the use of their store. Consignment can be a great deal for new sellers who do not have an established store front or website that has existing customer loyalty and a lot of traffic.
Better Options with Online Auction Sales
Online auction houses are a bridge between the traditional store front website and a consignment shop. They give sellers multiple options for listing an item on a large-scale site with a lot of traffic and an established company reputation in exchange for a portion of the sales.
The advantage of an auction site consignment agreement is that sellers are not required to accept the price a store puts on their items. In an online auction environment the seller has total control over the listing of each item, and can make all of their items the same style with the same offer stipulations, or change it up among the various products they have and give special incentives on certain products, such as free shipping or buy now options.
At an online auction the seller is still in charge of most aspects of their product. They are the store owner without having to deal with the cost of owning a brick and mortar store front or developing a website.
Online auction companies can also receive consignments from estates, foreclosures, liquidations, and other various contracts. This helps provide the bidder with a great selection of merchandise without having to pay for the overhead costs retail stores have.
Ready To Start?
And when you are ready to make a bid or purchase an item on consignment, visit U.S. Auction Online. Or you can register to view winning bids to get an idea of the value of items that you already possess.