In some cases, consignment shops or dealers buy items outright, and the
relationship ends with the exchange. This is rather rare but can be one
scenario. In most cases, the seller makes less on a quick and guaranteed cash for
merchandise exchange. After all, the seller is making the investment and also
taking on the risk if he or she simply buys the items for resale. This type of
arrangement really isn’t consignment, but some sellers may run across this type
of set up with some shops/dealers.
Generally, consignment means that you leave your goods with the seller and
then make money only if the item or items sell. In some cases, the seller is
contacted immediately when a sale is made and the deal is completed. Usually
this would be in the case of something in the high dollar range and usually if
you’re dealing with only an item or two and not multiple items. Again, this is
rare in the field. More often, you have an ongoing account listing all items
and then those sold and those not. Most are happy to let you check such account
listings. Just remember that the more time the seller spends on such details,
the less time he or she has to sell items (the bottom line).
While some shops may pay on demand, most have specific days when all
consigners are issued checks. In some cases, checks are mailed. In other cases,
sellers drop by and pick these up. Again, it’s important to know how the shop
or dealer works.
Some shops also offer price breaks on in-stock consignables charged against
the account. If you have a favorite shop and spend a lot on secondhand, it may
be more cost effective to go with a semi-barter exchange with some incentives
for shopping versus cashing out.