Pros And Cons Of Starting A Consignment Store


1. Low startup costs – When opening a consignment store, you can minimize many costs associated with starting up a business because you are not buying the products outright. You will only purchase what customers bring in to sell, so your initial investment should be minimal.

2. Turnover of products – A consignment store allows you to continuously update your stock with new and interesting items, keeping customers excited about coming back to see what’s available.

3. Recurring income – Because you are taking a percentage of the sales for each item, you can count on having a steady stream of income even after you have sold the items.

4. Low overhead – Because you don’t have to maintain a large inventory, your costs associated with storing, packing and shipping products are minimized, which in turn will keep your overhead low.


1. Risk of not selling items – You may be taking on more risk in a consignment store because you aren’t able to control the quality of items that customers bring in. There is no guarantee that an item will sell and if it doesn’t, you may be stuck with it.

2. Financial losses – If there are any damages or losses of items that occur while they are in your possession, you may be liable for any financial losses.

3. Limited control – As with most consignment stores, you have limited control over the pricing and promotion of items that come in. Unless you have an agreement with the customer who is selling the item, it can be difficult to get them to lower prices or promote their item more aggressively.

4. Competition – As with any business venture, you can expect to face competition from other consignment stores in the area. You may have to be very creative with your promotions and pricing strategies in order to stand out from the crowd.