The Upsurge Of Online Consignment Shops

Online sales of second hand goods is experiencing steady growth, which stands to reason since many brick and mortar stores of all kinds are now going online. The sales pitch for those who want to clean out their closets, and turn expensive designer purchases into cash – is an attractive concept.

Consignment sales have many legal and accounting parameters the average person may not be aware of. As a collector myself, I have always stayed away from consignment sales. I found the items were not old enough to be vintage, and often just old enough to be outdated.

However, if an item is authentic and made by a luxury brand designer (not a licensed label made in China and passed off as authentic) – then the chances are pretty good it will retain value, or may even increase in value over time.

But if you have a closet full of stuff to sell, the selling options are limited, therefore consignment might be the option you choose to go with. The consignment contracts are lengthy, and may not reflect the best interests of the sellers. The other thing to consider is the shipping.

Logistically, how are you going to ship a blouse to Toronto, then have them authenticate it, photograph it, list it on their website, go through all the parameters of the agreement with you, and then put a retail price of $50.00? If it does not sell, eight months or a year later, are they going to ship it back to you? That means the shipping cost alone will be as much as the listed retail price, without selling anything.

In addition, the accounting for large consignment stores is an absolute nightmare. The consignment agreement typically specifies a time period to keep the items listed. If they do not sell, they claim they will return them to you. There are various commission rates, based on price or other factors. The consignee or seller does not pay for or purchase the items, yet they take possession of the items, examine, authenticate, photograph and list them. Surely there is significant cost associated with doing so. Managing inventory like that has to be labour intensive and easy to lose track of.

When you factor in the complexity of accounting, the care of inventory, storage, photography, and listing – as well as dealing with customers, potential returns, and the consignor, it could easily be a recipe for disaster.

If you are considering selling on consignment, the main objective is getting paid of course. You are being offered a platform, visibility, and a vehicle for the sale of items. Nothing will sell unless it is put in front of people so they can see it, evaluate it, and decide if the price is right, or how badly they want it, regardless of the price. Therefore, on the surface, it seems like an understandable and rational choice to make, if you have a range of expensive designer items, and want to cash in on those purchases at a later date.

The first mistake many of us make is in thinking the original retail price is a reflection of what the item is actually worth. What you paid, and what it is worth, may be two very different numbers. Some things increase in value over time. Other things – not so much.

In my opinion, the biggest problem with consignment is embodied in the old adage that possession is nine tenths of the law. Does anyone really believe a flailing consignment store, in the quagmire of filing for bankruptcy – will individually package and return all items to the original owners?

This is a topic for lawyers, but common sense would tell us the original owners could easily lose what they have consigned, if the seller goes bankrupt. After all, the consignment store will have other debts to pay. In essence, they end up having possession of a huge inventory they do not own. People tend to take greater care of a business and/or inventory if they actually own it.

The buyer of consignment goods has less to worry about than the consignor, because once the item is sold, there is a legal transfer of ownership. If the item is shipped promptly, it should be fine. But due to the accounting, inventory complexities, and difficulties for large consignment stores to manage it all, means it is guesswork, as far as estimating how long they will stay in business.

If you go to the large Canadian consignment online stores, and are considering selling your goods, you are looking for a platform that does not have one-sided legalese in their contract. Plus, you want to know if they can set up and manage a long term evolving website, since that is their method of reaching the public.

If you walked into a brick and mortar consignment store and saw a disorganized mess, you would turn around and walk out. Yet, there is no way of telling how organized or capable an online store might be. Is there?

One way to tell how organized and user friendly an online store has been set up – go to the website performance site called GT Metrix. All you have to do is type in the specific web address of any website, and it will give you a detailed performance rating.

If a website is fairly new, but carries a large amount of inventory, and scores very low on the GT Metrix analysis – what is going to happen to them as things evolve and get more complex? They are likely to become exponentially convoluted as time goes on. Quite frankly, I don’t think increasing entropy creates a sustainable website model.

On the weekend I compared some large Canadian online consignment store websites. One of them has a current performance score of 27% translating to an F. The other has a score of 35% and also gets an F. It does not bode well for the longevity prospects of those websites. At the time of this writing, the quietwest.com website is over 6000 pages, and has a GTMetrix score of 98% or an A.

When you shop on a site where all inventory is owned outright by the store owner, there is much more flexibility. Prices and shipping can be adjusted. Offers can easily be made and accepted without any legal issues. Any dissatisfaction on the part of the customer can be remedied according to what the customer thinks is fair, and so on.

When dealing with a collector who has invested time and money into their products, without stringent timelines or convoluted accounting requirements, you are dealing with a seller who has flexibility as an integral part of the transaction.

Furthermore, an online store that owns all the inventory – will not go bankrupt. A well designed website requires a great deal of time and effort. When it comes to online sales, the website is a foundational cornerstone for the stability, longevity and resale of quality products.

Most of us who embark on business ventures must persevere through a number of challenges. Those challenges are compounded for women, due to a lack of financing and resources. You have to learn to do most things on your own. Research is the best and cheapest resource.

One major advantage of building and promoting individual web shops, is to expand the niche market. We are saturated with mass produced fast fashion items. It is a breath of fresh air to see some old fashioned quality and attention to detail. The online marketplace can be like an Avenue Montaigne, or Fifth Avenue, if there is enough to attract people.

Online boutiques provide endless browsing, nostalgia, obsolete designers, textiles, and one of a kind items. A collection carries the stamp of the owner in whatever it is we choose to put into our store.

I realize 1980’s ladies suits with big shoulder pads are not likely to sell. At the same time, the exhibit of what we actually did wear then, is so much a part of the arts, culture and fashion of a particular era. The individual design elements of each time frame carry a certain intrigue and attitude. At the time, those big-shouldered jackets seemed to be quite fashionable. Whether we liked them or not, such extremes have to be part of the whole.

Images of vintage and luxury brand fashion creates a resource for those in the film industry, who may have a project set in a certain time frame. One thing about vintage – there is nothing quite like the real thing.

The good news for Quiet West, other than getting an A+ on the GT Metrix performance score, is that I managed to trouble shoot a non-functioning favourite camera lens. It has had an ERR message for at least two years, so I had to switch to a mid-range Sigma lens and set the Nikon fixed portrait lens aside.

In googling possible causes for the error message, I learned the lens is not communicating with the camera. If you switch to a different lens and the other one works, you know it is a problem with the lens, not the camera. Then I read the most likely cause, is a need to clean the camera mounts. Since I have used the lens a lot, it made sense. I carefully followed the directions to clean the camera mounts, but still got the error message.

Anyway, it went back in the camera bag. The Nikon online repair site has a huge long list of things to fill out. So I finally decided to take it to London Drugs. They have a really good camera support and repair section at the London Drugs on West Broadway in Vancouver. I think all London Drug camera departments will send the lens out for repair on the customer’s behalf.

The online repair estimate was high, because of shipping, technical expertise required, assessment, etc. The Nikon 50mm lens is not a very expensive lens compared to most, so it did not seem worth it to spend 90% of the replacement cost to fix it.

One of the amazing things about DSLR cameras is that a $300.00 lens might be as good, or better than a $1600.00 lens. Overall, I do admit to being a Nikon fan, and use a Nikon camera. I would highly recommend the Nikon 50mm fixed portrait lens at the cheaper cost. Not only is it cheaper, it is much smaller, and seems to have more creative flexibility. It is also better than most other lenses in low light. I am no pro, but those are observations based on trial and error in taking product photos.

Just yesterday, I decided to google the error code on that particular lens one more time. Lo and behold, there was more info now than the last time I checked. There was more to it than just cleaning the camera mounts. Within one minute the answer was right in front of me, and I immediately knew it was the solution to my lens problem. So pathetically simple too.

Apparently, on that particular lens, you cannot have the outside aperture ring set at a certain number. Sure enough, it was dialled onto that particular number from experimenting with bokeh imagery.

After doing without that nifty little lens for two whole years, I plucked it out of the case, turned the aperture dial to a different number, and that was it. Job done. Lucky too. I love that lens. It works like a charm!