How Does a Consignment Work?

How Does a Consignment Work?

Consignment is a service arrangement in which an organization, likewise described as a consignee, consents to pay a vendor, or consignor, for goods after the thing offers. consignment house [รับฝากขายบ้าน, which is the term in Thai] is commonly stores that specialize in a specific type of customer product. The business approves items available for sale as well as consents to pay the seller a percentage of the profits if and when the goods do market.

Usual items sold through consignment, or second-hand, stores consist of:

  • Footwear
  • Garments
  • Baby furnishings as well as accessories
  • Sports equipment as well as gear
  • Antiques as well as antiques
  • Toys
  • Furniture
  • Music instruments

Organization Version

Each retailer establishes its own rates setup; however, the typical split between the business and the private seller ranges from 50/50, 40/60, or 60/40. Who gets the mass of the profits relies on how well established and successful is the store?


The English word consignment is from the French word “shipper,” which suggests “to deposit,” as in to hand over things offer for sale.


The advantages of the consignment design to the business owner are:

  • No demand to compensate front for inventory to offer, as most retail stores require to
  • Any items that don’t market can be gone back to consignors or disposed of
  • Can develop solid customers who return consistently to extent out the transforming goods
  • Repayments can be made days/weeks after the thing markets, boosting capital

The benefits to the consignor, or vendor, are:

  • No demand to hang out developing listings on to sell items, or establishing a retail shop
  • No requirement to deliver or deliver offered items


The major drawbacks of the version to business proprietors are:

  • Reliance on sellers to give a consistent stream of inventory
  • Disposal charges if there is a lot of merchandise left over, which can be lowered by giving away leftovers to charity
  • A demand for a software package that makes tracking products less complicated

The major downsides to sellers are:

  • Obtaining less than could be made by selling straight to buyers online
  • Needing to await repayment


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