Sourcing inventory can be a fun but challenging process. What if there aren’t many cheap thrift stores near you? What if garage sales are low-end and/or sporadic? What if you just don’t have enough money on hand to invest in inventory to resell?
For these people, consignment is a great option that I’ve used with a lot of success.
What is consignment?
Consignment is specifically an agreement to pay a supplier of goods after the goods are sold.
It’s typically done in a store setting, where someone goes into a store and strikes a deal with the shop-keep, however, a person will give you their items to sell online too.
In principle, the owner of the item and the seller of that item will agree on final price. Once the item sells, the seller will pay the (now) former owner, and in turn the seller will get a previously agreed upon percentage of the sale.
How does the item owner get paid?
There are two main ways for item owners to get paid, and there are pros and cons to each method.