Consignment Shop on a Local Main Street

Shoppers looking for good items at lower prices. Consignors (people clearing out items) get paid a share after a sale, so they are your suppliers, not your customers.

You keep an agreed percentage of each sale, often around half, with the rest paid to the owner. Some shops also charge small intake fees or mark down unsold items on a schedule.

• Judging quality and fair resale prices
• Organizing stock and records
• Friendly customer service
• Visual display

• Check whether your municipality requires a business licence for second-hand or secondhand dealers, as some require extra records or ID checks
• Commercial general liability and contents insurance; ask whether your policy covers items you hold for others
• Keep consignor money and records clear so you can always show who is owed what
• Check GST/HST registration once your sales pass the small supplier threshold, and how provincial sales tax applies in your province
• Slow-selling stock and seasonal swings, especially around winter clothing changeovers
• Check rules on selling items that may be recalled, such as some baby gear and car seats

Startup costs are typically estimated at around $8,000 to $40,000, depending on the size of the premises, the shop fit-out, and how much display equipment and opening stock you need. Treat this as an estimate and get local quotes for rent and fixtures.

Monthly revenue is typically estimated at around $3,000 to $15,000, depending on your location, stock quality, pricing and opening hours. Remember that you keep only a share of each sale, because the rest goes to the consignor, so check your costs against that.

Check whether your municipality requires a business licence for second-hand dealers, as some require extra records or ID checks. Also check insurance for items you hold for others, GST/HST registration, provincial sales tax, and rules on recalled items such as baby gear and car seats.