Business Idea

Start An Online Consignment Shop Business

About

Starting an online consignment shop business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell online consignment shop service, or selling online consignment shop service online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$12.6B
starting costs
$13.7K
gross margin
40%
time to build
210 months

About

Starting an online consignment shop business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell online consignment shop service, or selling online consignment shop service online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$12.6B
starting costs
$13.7K

 

gross margin
40%
time to build
210 months

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $7,000
Inventory Expenses $350 $14,750
Software Expenses $150 $2,794
Website Costs $13 $215
Advertising & Marketing Costs $0 $2,450
Total Startup Costs $513 $27,209

Successful Businesses

Business URL Rank
Shopify myshopify.com #28
thredUP thredup.com #9,038
Tradesy tradesy.com #12,114
Chairish chairish.com #17,182
Fashionphile fashionphile.com #22,673
Rebag rebag.com #46,570
LePrix leprix.com #130,532
Swap.com swap.com #133,157
Yoogis Closet yoogiscloset.com #138,390
Luxury Garage Sale luxurygaragesale.com #191,110
MyResaleWeb.com... because your business is important to us! myresaleweb.com #244,135

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Little startup costs required The cost to start a online consignment shop business costs significantly less money than most businesses, ranging anywhere from 12 to 27,209.
Rewarding work Starting a online consignment shop business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Traffic to your website A online consignment shop business gives people a reason to visit your website and to keep coming back to you!
Cons Description
Crowded Space Competition is high when it comes to your online consignment shop business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Security Issues With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Lack of benefits With a online consignment shop business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Isolation Often times, as a online consignment shop business, you typically work alone and do not have much face-to-face interaction with other team members.
Taxes As a online consignment shop business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.