Using Consignment to Increase Your Product Offerings

A lot of people are considering consignment as a viable means of finding merchandise for an online business. It makes sense. You have access to ready-made products with no cash outlay. And if they don't sell, you simply return them to the owner. What could be simpler?

Before you accept items on consignment, however, you'll want to have the seller sign a Consignment Agreement to protect you both. Here is a sample agreement that will help ensure your consignments are profitable for your business, you are protected from potential liability and your seller's needs are taken care of as well.

Be sure to customize the form to meet your business needs. Other than the form title, items in uppercase typically need to be changed to meet your individual needs.

=> BEGIN FORM <=

CONSIGNMENT AGREEMENT

To sell your ITEMS through COMPANY, you must sign and complete this Consignment Agreement. Drop off each item to be sold along with the completed form to:

   COMPANY NAME
   ADDRESS
   CITY, STATE ZIP
   PHONE
   EMAIL (optional)

Date of Agreement: ______________________________________________

Seller’s Name: __________________________________________________
Address: ________________________________________________________
City: ____________________________ State:_____ Zip Code:_________
Phone Number: ___________________________________________________

Consignment Shop:
   COMPANY NAME
   ADDRESS
   CITY, STATE ZIP
   PHONE
   EMAIL (optional)

Commission to be received by COMPANY: TWENTY-FIVE (25) percent of the original asking price.

Price to be determined by Seller.

Conditions of agreement:
• Term of Agreement - 60 DAYS.
• Item(s) to be sold on consignment will be stored by COMPANY.
• Each item to be sold will have a separate contract (i.e., if you are selling A NECKLACE AND EARRINGS for $25 but you are willing to sell each piece individually, this requires two separate contracts).
• A ONE DOLLAR ($1.00) registration fee must be paid up front for listing on the COMPANY Website (optional). Each item listed requires the $1.00 fee, (i.e. if you are selling a NECKLACE AND EARRINGS and you are willing to sell each piece individually, this requires two listings and two fees of $1.00 each to have both items listed online). This fee may not be deducted from the return of Seller's portion of any sale.
• Items may only be contracted for consignment at COMPANY TWO (2) times.
• Items left for THIRTY (30) days beyond the term of the contract become the property of COMPANY. There will be no calls made to have the item picked up. If the item does not sell, it is the responsibility of Seller to keep track of the agreement dates. Seller may call the shop to check the status of the consignment during regular business hours. Do not rely on call- backs from messages left on the answering machine to ensure pick-up. Seller MUST speak to a live representative of COMPANY.
• Listing on the Website will be updated on FRIDAY of each week.
• If Seller is listing an item on the Website, the contract does not take effect until the item is placed on the Website.
• Each item listed will have TWO markdowns available to it, the first after 28 DAYS and the second after 49 DAYS. (These markdowns are not mandatory, but highly recommended.)
• Seller will provide a self-addressed, stamped envelope to COMPANY for return of any funds due to Seller when the item on consignment sells.
• If the item does not sell and it is shipped to Seller, it will be shipped directly to Seller C.O.D. for the cost of said shipping at the address provided by Seller. Items returned to COMPANY by the shipper after they have been shipped once, become the property of COMPANY.
• Payments due for items sold will be mailed on MONDAY of each week.
• COMPANY is not responsible for fire, theft, or damage to any item left on consignment.

Item: ______________________________________________________

Description: _______________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________

Starting Price: $__________________________
28 DAY Markdown $__________________________
49 DAY Markdown $__________________________

Seller’s Signature: ________________________________

Date: ________/________/________

Company Representative: ________________________________

Date: ________/________/________

For Office Use Only:
   Date Item Received: ________/________/________
   Received By: ___________________________________
   Date Contract takes effect: ________/________/________
   Post on Website: (yes/no)
   Date Posted: ________/________/________
   Date Contract ends:________/________/________
   Posted by: _____________________________________
   Date Sold: ________/________/________
   Final Selling Price: $__________________________

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Download a copy of this form in Microsoft Word format at http://sensiblesitesolutions.com/files/consignmentform.doc.

Consignments can be a positive experience for both you and the seller. By ensuring your consignments are handled efficiently and professionally, you can create a fabulous business offering products you couldn't otherwise afford while providing a terrific service for others needing an outlet for additional sales.

Article copyright © 2005 by Darlene Bishop. All rights reserved worldwide.

Darlene "Dee" Bishop is a writer and creative designer with decades on online experience and the owner of Bishop's Corner, an online/catalog shop offering hundreds of quality gifts, home decor items, toys, housewares, furniture and more with nearly 1,000 products under $20. Visit her online store today at http://BishopsTN.com.

NOTE: Feel free to use this article in your ezine or on your website provided you leave it entirely intact, including the resource box and copyright statement above. A courtesy copy to is appreciated.