Starting a Consignment Shop

Running a retail store could require a large capital for buying stocks. If you want to run a retail store, but don’t have such capital requirement, you can instead start a consignment shop.

If you are consigning, you only have to pay the consignor for what you have sold. Interested? Here’s a guide to help you start one.

If you are a consignee, consigning means agreeing to have someone else's merchandise sit on your store -- without buying it -- and taking only a part of the proceeds when the good is finally sold. As long as the goods sit on your shelf, they still belong to your consignor. Usually, it is you, the store owner, who determines the price of the merchandise. If you are consigning, you could ask the help of a lawyer in coming up with an agreement to have a guide in your dealings with your consignor.

Consignment Shop Goods and Pricing

Consignment shops are also often understood to be secondhand stores, but they are different from charity or thrift shops in that in a consignment shop, the consignor still gets revenue, whereas charity or thrift shops donate the proceeds -- although, some consignees also often donate unsold items to charity. Most items sold in these shops are clothing, home decor, athletic equipment, antiques, books, musical instruments, toys, furniture, and tools. Consigned goods are typically priced 35% on the average of their retail or original price, depending on factors such as brand, style, age, and demand.

Consignment Shop Startup Needs

Starting a consignment shop doesn't cost as much like a regular retail store because it does not need the purchase of merchandise. For example, a consignment clothing store could have an average startup cost of $6,000. What you basically need for this business is a shop with display furnishings, tables and shelves, packaging items, tags, and cash register. Later on, you can furnish your shop with a computer and printer.

In your projected budget, include costs for advertising, utilities, rent, overhead and renovations. If your store is a specialty shop, the atmosphere of your showroom factors in a lot for the business, and so it is better if you spend some amount to make your shop look clean, neat and stylish. Pay attention to carpeting, wall decoration, and even the smell of your shop. Also make sure that you have enough rack and shelves and your displays are attractive. A classy atmosphere elicits good mood, increasing the likelihood that a customer would buy an item from your store. It would also be advantageous if you and your staff have the eye for quality and sufficient knowledge of the merchandise you are selling, particularly if you are running an antique shop.

Advertising for this business goes the route of the regular ones like radio, newspapers and fliers.

28 Comments

  • renalla said on May 11, 2009
    in need of hair care products for my new shop.
  • Ken said on May 21, 2009
    I need men's clothing for consignment. Starting the first week of June, I will be offering consignment clothing in my men's clothing store in the Hill District. The store name is Urban Zone at corner of Centre & Kirkpatrick. Thanks in advance.
  • lynsey said on June 14, 2009
    I need clean and current wedding dresses for my consignment bridal shop located in Pittsburgh.
  • Brian & Abby said on July 24, 2009
    my husband and i are opening up a consignment shop, we will offer paintings, jewelry, home decor and so fourth our question is the rest of our building will be on consignment...Should we just charge per square footage or square footage + a percentage of the sells we make for our vendors?
  • Jessica said on January 25, 2010
    Great tips! Two years ago I started selling clothing and stuff that had accumulated in my attic, online. It took off and so I started looking elsewhere for items to sell (free for me of course!), over 3 months my business took off and I couldn't keep up with the online selling anymore and my husband converted our garage to a store, and business is great. I now share my experiences and tips with others interested in running a resale/consignment/vintage/thrift store at my blog http://running-resale.blogspot.com I've had such a great time with it!
  • Ken Lucas said on June 18, 2010
    I will be retiring in September and used to work part-time for a person that owned a mens consignment store. She has since changed directions and is doing something totally different. I like the idea of selling on the internet because it keeps the overhead to a minimum. I have a number of things I could sell to get started. Could use some advice and smart tips on how to get started. Thanks.
  • Danielle said on February 4, 2011
    I need teen apparel for a consignment store in North Carolina.. Brand names Please email me at dmorenick714@yahoo.com if you know where I can get some cheap or free
  • wanda said on March 30, 2011
    I need display furniture, racks, and name brand hand bags and shoes if possible. I had this dream for 6 years. I'm a single mom with 4 kids. Finally I step out on faith and felt I could make it happen. And I feel I will open the doors May 1st. Thanks.
  • Gwen said on May 24, 2011
    Wanda, did you open your store? I hope so. Good luck to you. Where are you located?
  • Grace said on August 9, 2011
    Located in NY, I have original handcrafted artwork that I'd like to place on consignment but I don't know how to get started. Any ideas please? Thanks.
  • Antoinette said on September 21, 2011
    My husband and I are researching to open a consignment store in North Carolina, we're looking for any suggestions and ideas. Can we start online first while we're building our inventory? can it be done while we are still working, and do open up on the weekend? All ideas are welcome. thanks,
  • heather said on December 11, 2011
    a year and a half ago i opened a ladies consignment fashion boutique and business is very slow. i price everything about a quarter of the regular retail price which is low. i have spent a fortune on advertising. the location is pretty good with available parking. i really need suggestions on how to bring in new customers , thanks
  • Tanya Hudson said on January 29, 2012
    I am opening a consignment store for teens! I need name brand clothes that all teens want but cant afford!
  • ravi pal said on July 7, 2012
    i want to make consignment shop in jammu. please tell me about this shop & give me complete knowledge.
  • caron said on August 10, 2012
    I am looking to open a consignment shop close to St. Louis on the IL side. I was wondering if starting an online consignment shop would be beneficial before attempting a brick and mortar building. Any thoughts from those who have an online consignment shop?
  • Tina said on October 2, 2012
    Hi, everyone, I live in Tampa florida and for some time now I have really been thinking about opening a consignment shop. I would really love it if any one of you wouldn't mind sharing some advice and experiences...
  • abhijeet said on October 15, 2012
    i have a ready shop just need stock on consignment. i have shop at kolhapur, maharashtra, india. 9822844428
  • Amit Gupta said on October 29, 2012
    I have my shop in New Delhi I need block printed on thick fabric or on silk if someone is interested in giving there products on consignment can contact me on my no. 9555354505 or can write to me at my email id amithi.map@gmail.com. If you are related to handloom or handicraft sector and are willing to give your product on consignment you can please contact me. Further, we can meet and discuss the terms and conditions. Thanks and regards, Amit Gupta
  • c.underwood said on November 20, 2012
    Need contacts for big men clothes on consignment will b north carolina 2524699306, please call me asap
  • kagiso thobejane said on February 8, 2013
    i'm in south africa at pretoria willing to work with u guys on consignment merchandise. we can make this things happen big time
  • HENTIE VAN DER WALT said on March 9, 2013
    WE ARE STARTING UP A NEW STORE AND WANT TO SPECIALIZE IN AGRICULTURAL PRODUCTS. THE STORE IS SITUATED ON A VERY GOOD SPOT AND THERE IS A LOT OF FLOORSPACE AND OFFICES. OTHER PRODUCTS IS WELCOME TOO. WE WILL LIKE TO GET PRODUCTS TO SELL ON CONSIGNMENT BECAUSE THE START UP COST WAS A LOT OF MONEY. HE STORE IS IN HENNENMAN NEAR FREESTATE GOLDFIELD AND IN THE CENTRE OF THE AGRICULTURAL HOTSPOT OF THE FREESTATE. HENTIE VD WALT TEL: 083621376 OR 0739933115
  • simone said on April 13, 2013
    I am a wholesale supplier of ladies quality reclaimed apparel and accessories with an emphasis on larger sizes. Located in Michigan, servicing primarily the Great Lakes states, I am interested in supplying markets in Japan, England, India, Australia, Canada, Sub Saharan African and Mexico. We supply theater groups, entertainers, consignment shops and resale boutiques 734.276.6276
  • Courtney said on April 22, 2013
    Hi, Simone and Kagiso from a post in February, I am currently in Johannesburg and looking for consignment opportunities here, which could really take off since because of the market. do you have website...
  • Sharina said on April 25, 2013
    I'm situated in East London, Eastern Cape, South Africa and would like to start a consignment boutique store specializing in home sewn ladies clothing. Let me know if you are interested in supplying quality goods.
  • shawn said on August 16, 2013
    need unwanted stock. furniture appliances and much more. let us sell it for you. we are located in germiston and have a large warehouse. we sell second hand goods and need more stock please help if you can. thank you, shawn
  • Vikas said on January 24, 2014
    Hello, We are manufacturer of ladies designer embroidery long Kurtis from Jaipur (India) Please contact us for more information. Mobile number is +919929869706
  • Kelli said on March 28, 2015
    I need name brand shoes for my consignment hopefully I'll be open in June1/2015
  • Gaurav said on March 29, 2017
    Hey guys, i want to start a consignment store in gurgaon india. Can anybody suggest me how to open this store. If anyone is there please contact me on 8053712340

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