Whether you are a beginner or an experienced artisan, deciding between wholesale and consignment is an important decision. Neither method is right for every situation. There are benefits and drawbacks to both. If you are new to the craft business, consignment selling may help you build your portfolio before moving on to larger shows. Some upscale craft shows will ask you about previous shows you’ve participated in. Listing these shows will increase your chances of being accepted at better shows.
The advantages of consignment are many. First, you can get a larger portion of the retail sale price and pay less in commissions. Conversely, wholesale puts the risk on the vendor, who is unsure of how much revenue the sale will bring. With consignment, you won’t be compensated for any product shrinkage or loss. But in the end, wholesale is a better option for most stores.
With consignment, you’ll find yourself in a waiting game. In consignment, you’ll be responsible for regularly checking the progress of your pieces at each store and keeping track of their sales. You’ll also have to wait for sales to come in, which can be frustrating for sellers and customers alike. However, consignment provides many advantages to both sides. And as you can see, it’s an excellent option for both retailers and suppliers.
As with any business, you’ll want to look at the risks and benefits of wholesale vs consignment. Wholesalers will often take a greater percentage of the risk. But consignment stock doesn’t always sell – they must sell to consumers for it to be worth their time and money. It can also be risky for consignors because they can end up with dead stock, and retailers may have to hold onto the stock for years.