Jan 10

Jan 10 Wholesale or Consignment?

2022

Wholesale and consignment both allow your products to be sold by a retailer, The big difference is with consignment you only get paid if the product sells as opposed to wholesale, in which you get paid for the entire order no matter if it sells. Many retailers will ask makers to consign their products rather than place a wholesale order. If you are a maker, what should you do? Here are some differences that we hope will help you in your decision-making.

CONSIGNMENT:

When you consign your products you are basically loaning your product to the shop.

Consignment gives shop owners a way to have many vendors in their store without paying for them all at once. They place the items in their stores and if they sell they pay the maker. If they do not sell then the maker is expected to pick the items up within the time frame agreed upon.

Many retailers will ask a maker if they will consign to see how their products do. That is ok with the understanding of if the product sells well, the next order will be a wholesale order. Many new makers will try consignment first and use it to test out their market. It can give you valuable information about your audience and product line.

WHOLESALE:

Of course, since we are a wholesale platform we think it is the smarter choice. So let us tell you why.

A major difference between selling wholesale as opposed to consignment is the risk. Once a retailer places the order with the maker, pays them and the order is shipped, that is it, you are done. If the items do well in their store then good chance there will be a reorder. If it doesn’t, you have been paid and it is time to concentrate on new orders and other retailers.

In the end, it takes less time to sell your product all at once than one at a time or two at a time. When you are receiving big orders from retailers, you are only packing up one or two big boxes as opposed to many small ones. Also, you do not have to go back to the retailer and pick up items that didn’t sell.

Wholesale grows your brand! Think about being in many stores across USA and Canada! That is exciting and a huge way to grow your brand. Soon homes all over will be using your mug, wearing your jewelry, or displaying your art.