What does Consignment Mean?

Consignment Definition

According to the Oxford Languages Dictionary, consignment is an arrangement where the supplier is paid only after the goods are sold. In simpler terms, consignment is when a business sells your items for you and you receive a money portion of the sale. Consignment can be a straightforward way to do it if you want to make some extra cash and sell some things. You can try selling your items through an online selling platform, at a store, or an event.

What is the Difference Between Sale and Consignment?

The difference between a sale and a consignment is that a sale is something you have already completely paid for, and the business receives the complete payment immediately. Just a heads up, you’ll receive compensation for your consigned item only when it sells at the store or event. When the item is not sold or picked up by the consigner, it gets donated. Most events also allow the consigners to pick up their items that have not sold.

What is a Consignment Store?

A consignment store is a physical retail establishment that allows individuals to sell gently used or new items. Unlike traditional stores that purchase items from wholesalers, consignment stores sell items on behalf of their clients. Upon arrival, the store will inspect the consignor’s items. Then, they will tell you whether or not they will accept the new or gently used items.

The store then displays the items for sale in their shop and online. When the item sells, the store takes a percentage of the sale price as a commission and pays the remaining amount to the consignor. Consignment stores are a great way to sell unwanted items and earn extra cash without the hassle of managing your store or website.

Include Batteries in Any Toys or Electronics

Consignment stores like to see un-smelly, stained, ripped, torn, or faded items. The store will test them to ensure they are working. Make sure to include batteries!

If the consignment store, like this one, will accept your items, they will have you sign an agreement. Different stores have different payment policies when it comes to selling your items.

Additionally, some stores offer access to an online portal where you can keep track of your sales and earnings. Before selling your items, you must check with each store to understand their payment process.

The online portal lets you see the items and the amount sold. This record-keeping gives you a clear overview of your sales and profits. The consignment store will pay you by issuing a check or store credit.

How can I Sell at a Consignment Event?

Consignment events like this one are an exciting multi-day sale that brings together families from the community to showcase their items in a large venue, such as a gymnasium or event hall. Buyers find unique and high-quality items for less, while consigners showcase their goods. Consignment events provide a one-stop shop with many different things available and can be highly successful. There are tables, clothing racks, and cash registers. To partake in an event, the consigner must complete much preparation.

Consigner sign-ups are held months before the event, which gives consigners ample time to prepare.

Consignment events help the community. However, a lot of preparation is needed by consigners to get items ready to be sold. To prepare your items for the event, you must input the description and price into the event retailer’s website. Then, print out tags and attach them to your items with safety pins or a tagging gun. Everything you bring to the consignment event must have a title, whether it is clothes, books, toys, or shoes.

You also must inspect your items and ensure they have no stains or imperfections. Consignment events are ideal for families with a lot to sell and buy. Employees inspect items for defects and remove any found to a designated spot for later pick-up.

Families save a lot of money by shopping second-hand at these large sales. They can find anything from girls’ and boys’ clothes to maternity and large outdoor toys. These items can be new or gently used and discounted 50% or more.

Signing a Consignment Agreement

Signing a consignment agreement or contract is necessary when selling your items by a consignment store, event, or even online consignment. A consignment agreement is a document that goes over what the consignment retailer will do with your item and how they operate.

Signing a consignment agreement protects you and the consignment store/event retailer. The consignment agreement covers consigned items’ terms, payment, risk, and unsold items.

What is an Example?

Here is a definition of an example of consignment:

Your baby has grown out of her baby swing, like this one. It is in good condition, and there is not much wear. You bring it to the consignment store. The store accepts it. You sign a contract, and they record the sale and your proceeds. The next time you go back to the consignment store, you ask to check your balance, and they let you know the baby swing sold and you have a $20.00 balance. The store will issue you a check or store credit.

Why Do People Consign?

Consignment is a simple and easy way to declutter and make money. People do consignment because they do not have to sell items or worry about dealing with the buyer. Consignment stores take care of customer service.

The consigner does not have to worry about marketing since many people know about consignment stores and events. It makes selling your item quick and easy. Even online selling platforms like Poshmark make selling your articles very easy. List your item with pictures on Poshmark, and let them handle customer service for a fee.

What are the Advantages?

There are many advantages of consignment. Here is a list to help you understand just how great consignment is:

1. Declutter your house – remove unused items without throwing them away.
2. Make money – receive money for items you do not use anymore.
3. Help the community – saves money for families that cannot afford to buy brand new.
4. Reuse, recycle – retailers do not have to store inventory – all inventory is already up for sale.
5. No customer service is necessary for the consigner.
6. Buyers save money since items are highly discounted.
7. Immediate availability of items – some items can be sold out in retail stores but you may find it gently used when buying second-hand.

What Are the Risks of Consignment?

Some risks of consignment include damage and theft. Your items are put out for customers to examine. Especially if you bring your items to a children’s consignment store or event, there will be children in the store and drinks, snacks, dirty hands, etc. There could be stains or other damage done to the item.

However, I have been consigning for years at consignment stores and events and have never had any of my items damaged.

The risk of your item getting stolen should be another concern. This might happen, especially when your item is on display for the general public. Every store accounts for theft, however, when you sign a consignment contract, the consignment store will state that they are not responsible for replacing your item due to theft or damage. It is something that you need to keep in mind when consigning. If you have an item that is sentimental to you, but you would still like to sell it, sell it online.

Check out some of my other blog posts about consignment definition:

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