Consignment Shop With a Small Storefront

Bargain-minded shoppers pay for the goods. Sellers get a share of the sale price, and you keep the rest.

You keep a commission on each sale, often around half of the price, set by your consignment agreement. Some shops also mark down unsold items over time and donate or return what never sells.

• Eye for quality and pricing
• Organizing stock and records
• Customer service
• Basic social media and photos

• Check with your city or county for a business license and zoning for retail use
• Register with your state for a sales tax permit and check how sales tax applies to consigned goods
• Some states or cities have secondhand dealer rules, so check with your local police or licensing office, especially for jewelry, electronics or secondhand goods that need records
• Get general liability and property insurance, and check how items on consignment are covered if stolen or damaged
• Keep careful records of what each consignor is owed, and be careful with recalled items such as child car seats and cribs
• Rent and slow-selling stock can tie up cash for months

Startup costs are estimated at typically around $8,000 to $35,000, depending on your rent and deposit, how you fit out the space and how much stock you take in. Slow-selling stock can tie up cash for months.

Monthly revenue is estimated at typically around $3,000 to $15,000, depending on your location, the quality of your stock and how quickly items sell. These are estimates only, and rent will take a share of what comes in.

Check with your city or county about a business license and retail zoning, and register with your state for a sales tax permit. Also check secondhand dealer rules, insurance for consigned items, and rules on recalled items such as child car seats and cribs.