Boost your success with 'on consignment' sales: 5 tips for retailers
- Cirquly
- Jun 17, 2024
- 2 min read
Updated: Feb 24
1. Know your costs
Before entering into a consignment agreement, it’s crucial to fully understand your costs. Consider:
The commission rate you charge or negotiate with the seller.
Any additional fees or expenses associated with the agreement.
Understanding your costs ensures you set up agreements that are financially beneficial for your business.
2. Negotiate the terms
Make sure all the terms of the consignment agreement are clear from the start. Negotiate conditions that work in your favor, such as:
Clear definitions of commission percentages.
Specific details on payment terms and responsibilities.
The duration of the consignment period.
Solid, favorable terms form the foundation for a successful consignment arrangement.
3. Keep accurate records
Accurate record-keeping is key to managing your on-consignment sales effectively. Track all critical details, including:
Selling prices for each product.
Agreed-upon commission percentages.
The duration of each consignment agreement.
Maintaining comprehensive records helps you monitor performance and make informed decisions.
4. Communicate regularly with sellers
Regular communication with your sellers is essential to ensure smooth operations. Stay in touch about:
The status of your products.
Any changes to the consignment agreement.
Updates on sales and revenue figures.
Consistent communication helps prevent misunderstandings and strengthens the business relationship.
5. Evaluate your performance regularly
Take the time to review and analyze your on-consignment sales performance periodically. By doing so, you can:
Identify strategies that work well.
Pinpoint areas for improvement.
Adjust your approach to maximize profits.
Regular evaluation allows you to optimize your sales processes and boost overall performance.
Conclusion
By applying these best practices and leveraging our consignment software, you can streamline your on-consignment sales process, maximize revenue, and take your retail business to new heights. Ready to optimize your consignment sales? Contact us today to learn more about how our software can help transform your store.