Reselling vs consignment
Reselling is buying a toy for $2 and selling it for $5. Consignment is when your friend says "sell my toy for me and keep some of the money." You never had to buy it.
| Reselling (flipping) | Consignment | |
|---|---|---|
| Who owns the item before it sells? | You (you bought it) | The original owner |
| Money needed upfront | Yes, to buy stock | Little or none |
| How you earn | Sale price − what you paid − fees | A commission (percentage of the sale) |
| If it doesn't sell | You're stuck with it | It goes back to the owner (or as agreed) |
- Typical online consignment commissions: about 30–40% for standard items and 40–50% for "high-touch" categories such as luxury, vintage and collectibles (per one reseller guide; your local market may differ).
- Wholesale with delayed payment is a cousin of consignment. Example: the wholesale marketplace Faire has offered eligible retailers payment terms (such as 60 days) and free returns on a first order with a brand. Check current terms and eligibility first.
- Draw two columns on paper: Reselling and Consignment.
- Under Reselling write: you buy the item, you own it, you need money first, and you keep sale price minus cost minus fees.
- Under Consignment write: the owner keeps ownership, you earn a commission, and unsold items go back.
- Pick one item you could sell for a friend and work out your commission using the typical 30-40% range as a starting idea (your market may differ).
- Decide which model fits your money and risk today.
- Check: you can explain who owns the item and who is stuck if it does not sell.
Read the video script
[Host] "Two ways to sell stuff you didn't make."
[Text on screen: Reselling = you buy it first] "Reselling: you buy it, you own the risk, you keep the difference."
[Text on screen: Consignment = you sell it for someone] "Consignment: the owner keeps the item until it sells, and you keep a commission."
[Host] "For standard items, consignment commissions are often around thirty to forty percent."
Decide which model fits you better right now (money, space, time). Write two reasons.
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I'm learning "Consignment & Reselling Business" on The Future Market. Lesson 1: "Reselling vs consignment". What the lesson teaches: - Reselling (flipping) - Consignment - Who owns the item before it sells? - You (you bought it) - The original owner - Money needed upfront - Yes, to buy stock - Little or none - How you earn - Sale price − what you paid − fees - A commission (percentage of the sale) - If it doesn't sell - You're stuck with it - It goes back to the owner (or as agreed) - Typical online consignment commissions: about 30–40% for standard items and 40–50% for "high-touch" categories such as luxury, vintage and collectibles (per one reseller guide; your local market may differ). - Wholesale with delayed payment is a cousin of consignment. Example: the wholesale marketplace Faire has offered eligible retailers payment terms (such as 60 days) and free returns on a first order with a brand. Check current terms and eligibility first. The exercise I'm working on: Decide which model fits you better right now (money, space, time). Write two reasons. I'm stuck. Please: 1. Explain the main idea in plain, simple words with one everyday example. 2. Walk me through the exercise one small step at a time. Ask me what I've done so far before giving the next step. 3. Don't just give me the final answer. Help me do it myself, and check my work when I share it.
I'm a parent helping my child (about 8 years old) with a lesson called "Reselling vs consignment" from the course "Consignment & Reselling Business". Here's what the lesson says: Reselling is buying a toy for $2 and selling it for $5. Consignment is when your friend says "sell my toy for me and keep some of the money." You never had to buy it. The activity: Decide which model fits you better right now (money, space, time). Write two reasons. Please explain this so an 8-year-old understands: short sentences, a fun everyday example, and no hard words. Then give me 3 simple questions I can ask my child to check they understood, and a way to do the activity together, one tiny step at a time.
Sources
- List Perfectly, Online consignment selling (commission ranges): listperfectly.com/selling/online-consignment-selling-getting-started/
- Faire, retailer terms: www.faire.com/support/articles/360032132391
- Faire news: news.faire.com/?p=55
What to sell and where
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The consignment agreement
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Listings that sell
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Safety, recalls and legal basics (with Canadian examples)
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Money, records and growing (education only)
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Final project
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Quiz
In consignment, who owns the item before it sells?
The original owner.
Typical online consignment commission for standard items?
About 30–40% (higher for luxury or collectibles).
Why research sold prices instead of asking prices?
Sold prices show what buyers actually paid.
Name four things a consignment agreement should cover.
Any four of: ownership, commission and fees, price floor and price drops, time limit, condition and damage, payout timing, owner's right to sell.
Can you sell a product you know has been recalled?
No (Canada's rule; check your own country).
Where can you check for recalls?
Your own government's product recall and safety site (in Canada, recalls-rappels.canada.ca).
A $200 item sells; your commission is 40%. What does the owner get (no fees)?
$120.
Final exam
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Certificate
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