Consignment has long been a leading source of revenue in the eCommerce space so the 2015 uptrend of business startups is hardly a surprise. These shops are often misunderstood as providing second-hand, low quality used products with inconsistent customer service. That is simply not the case as these businesses are a great way to sell unique high quality, gently used specialty items on eBay. So how does it work? The concept is quite easy. Basically what we are talking about is a trading arrangement in which an owner sends his goods to a buyer who in turn sells the item for the owner. When the item sells, the owner pays a fee to the seller for the service.

Consignment and eCommerce

In 2015, consignment shops have had an impressive run, snapping up millions of sales. According to Julie Wainwright, RealReal CEO, competing with big stores like Amazon (purveyor of new goods and some used) and eBay (the perfect selling market for used goods) requires a unique selling proposition which is generally tied around providing unique, high quality goods to customers.

How Does It Work?

Let’s have a look on how a consignment shop works before moving to its unique features.

  1. The owner, who owns the goods takes his items to be sold to a consignment shop.
  2. Before accepting the goods, the consignee agrees to the fees or profit with the store for the service of selling the goods on the owners behalf.
  3. A consignment sales cycle is also established which usually encompasses a period of 30 days, 60 days or 90 days or a shorter period for online auction sales.
  4. If the goods do not sell in the sale or auction cycle then they are returned to the owner or a new agreement to sell is created and the cycle repeats.
  5. Some shops also offer discount prices if goods are not sold during a sales cycle and a primary reason stores prefer working with profit-sharing strategy.
  6. If the goods are sold within the given time then the store keeps anywhere between 20% to 60% of the sale of the goods and the owner receives the remainder.


“Here are some reasons on why your store can benefit from listing your unique, high quality consignment goods on eBay.”


Its a Unique Business Model

The structure of consignment stores is completely different and unique in functionality than its retail counterparts. Apart from the structure, these stores also offer a unique selection of goods. Consignment stores usually have well-defined policies for their customers. For example, RealReal shows keen interest in super high quality used luxury goods whereas ThredUp, America’s largest online consignment store does not take high-end designer clothes. They believe that the demand of mid-range brands is more in the market than expensive brands.

Tune Your Business with Real Time Sales Data

Online stores leverage thier customer, sales and order data to help drive sales and marketing strategies and use aggregated data to improve product choices by gathering data about style, size and brand. This information helps with improving sales the stores purchase process. SellerVantage helps customers track and identify these metrics with our reporting tools.

SellerVantage provides automated listing services to marketplaces like eBay and Amazon with features like inventory control, shipping integration’s and order management tools. We are an industry leader in the consignment space with one of the only feature sets on the market that allows you to add custom commission plans to consignors along with check printing to your consignees when their items sell. See why SellerVantage is the choice of professional eCommerce and consignment sellers alike. Click and discover the cost and time saving benefits you can enjoy by starting a SellerVantage subscription today.