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How does a consignment shop work for sellers?

Asked by sitecontributor|Consignments

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BidBuySmart

A consignment shop sells your items for you and keeps a share of the sale price. You bring in items, the shop accepts the ones it thinks will sell, and it prices and displays them. When an item sells, you receive your share, usually on a set schedule or when you check in.

You still own the items until they sell, which is the main difference from selling to a resale shop that buys outright. Most shops have a set consignment period, after which unsold items are marked down, returned, or donated, depending on the agreement.

Read the consignment agreement carefully. It should explain the split, the length of the consignment, markdown policies, how and when you are paid, and what happens to items that do not sell.

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