Open Online Consignment Shop

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Consider all of the pros and cons before you open online consignment shops to resell items for others in order to make a profit.

Starting an online business is a serious undertaking.

Pros of Online Consignment Shops

The idea of an online shop versus an actual physical location may appeal to you for several reasons. These reasons might include:

Low start-up costs
No or low staffing costs
Making money online
Ability to keep irregular hours/ability to stay “open” 24 hours
Opportunity to continue working a full-time day job
Option to work as many or as few hours as needed
Appeal of working from home

Experienced eBay and resale buyers and sellers usually have an advantage, in that they know what costs are reasonable for shipping, web hosting and resale price for the goods offered. But you do not have to be a resale genius to learn how to run a consignment shop. Small business experience, entrepreneurial know-how and the desire to be your own boss can also boost your chances of online consignment success.

Cons of Online Consignment Shops

Just because you are running an e-commerce-based business does not mean you can do whatever you want. Sales and income tax laws will still apply to you and your business. Your city, county or state may have laws regarding home-based businesses, so check with your local government offices to be sure your home business is on the up-and-up.

Though your overhead will be much lower to begin with, you will still incur some initial start-up costs. Similar to brick and mortar consignment shops, you will need the following:

Inventory to sell
Storage for products
Written agreement for the consignee
Business software
Sales and small business tax and liability expertise (or the funds to hire someone with the knowledge you need)

Additional skills and resources are also needed when you open online consignment shops. They include:

Internet marketing skills
Knowledge of HTML and computer skills
Packing and shipping materials
Professional camera for placing photos of products online

While anyone who manages a small business needs to be highly-motivated and a self-starter, it is even more important for someone who wants to run an online consignment shop. Being your own boss can lead to failure if you are not motivated or disciplined enough to report into work each day, even if work is just down the hall. A home-based business is not for everyone, so consider whether or not your personality is suited to opening an online consignment store.

Open Online Consignment Shop: Resources

Before you dive into a new business venture that will help you get your finances under control, you should do plenty of research into opening an online consignment shop. Check out these resources for more information:

NARTS: Visit the National Association of Resale and Thrift Shops to learn more about the business.
Consignment Pal: A directory of consignment stores, plus information about the consignment business itself, including ideas and resources for selling your items.
Too Good To Be Threw: A website that offers tips and blogging advice for sellers. Consider purchasing the book of the same name for more help on opening your consignment store.
Auction Bytes: A site devoted to news and resources for people who buy and sell online. Visit the forum or use the tools to help you manage your online consignment business.

You can also open online consignment shops through other established resale companies, like eBay. Or use services provided by proven retailers to set up your online store.

Visit the following webpages to find out more about this online consigning option:

Skip McGrath’s Auction Seller’s Resource: Free Articles and Information for eBay and Home Internet Sellers: The articles provided on McGrath’s site are full of information for online consignment shops, especially eBay Consignment Sellers: Save Time & Money With Automation and How and Why To Get a State Sales Tax Number.
Are you ready to start an eBay Consignment Store?: This article in the eBay guides section gives someone considering opening an eBay consignment operation a lot to think about, from the business plan to inventory tracking.
Sell Online with Webstore by Amazon: Learn about Amazon.com’s e-commerce options for resale items.
Yahoo! Merchant Solutions: Build your own online store with Yahoo!’s small business resources and plans.

Starting your own venture, like an Internet-based consignment store, is a large task. Be sure you have considered all the pros and cons before embarking on your new career path. Use all of the tools and resources available to make the process as easy as possible..

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