What are Consignment Shops?
Consignment businesses are usually small quaint shops that sell items that have not yet been paid for--the supplier is only paid when a sale has been made. There are also large consignment shops, which are usually set up in the form of eBay drop-off stores and other online businesses.
A consignment shop owner doesn't just sit at the register and ring up sales or sit in the back room and count money. He has a variety of duties.
Take Care of Money Issues
The most important daily activity that consignment business owners must take care of is financial in nature. Consignment shop owners have to be well versed on bookkeeping responsibilities. Bills must be paid on time and in full. Since consignment owners get their products from suppliers with no upfront cost, they constantly need to stay on top of their books. When products are sold, consignment shop owners are responsible for calling the suppliers to give them their portion of the sale. If the owners do not take care of these duties on a daily basis they jeopardize their supply of clothing.
Take Care of Customers
When operating a consignment shop, maintaining customer relations is one of the top concerns. Since consignment businesses are usually small stores, there is a great opportunity to build strong relationships with customers that will have them returning time and time again for more merchandise. In the case of online consignment businesses, owners must still build customer relationships in other ways. They are responsible for maintaining contact with customers through email to assure them that their orders are taken care of. In the case of eBay businesses, a consignment business owner must also take time out of his day to provide and solicit relevant feedback on the customer's experience.
Maintain the Shop and Inventory
For a consignment business to be run properly, it must be properly maintained on a regular basis. In the case of brick and mortar shops, the consignment business owner will have to take inventory to assure that the products are properly stocked. If an item is running low or the shop owner discovers that the physical inventory does not match that enumerated in the computer, these problems must be resolved immediately. The consignment business owner also must keep the store clean so that customers can easily navigate the store. So a business owner will have to constantly take runs through the store to assure that everything is in its proper place and possibly sweep and clean up areas to keep things tidy. Online consignment business owners must also keep an accurate accounting of inventory to be shipped and assure that the items are kept in tip top shape.
Track and Pay Employees
Finally, if a consignment shop hires people to ring up sales or help with these duties, they will be responsible for keeping track of their employees on a daily basis. Owners will have to make sure that employees are showing up on time and that they are minding the money and goods. On payday, the consignment shop owner must write employee checks and ensure that the money is in the bank to cover the payments.
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