Regardless of the type or segment of your business, every company has the same goal in common: to increase its revenue. And in this time of crisis that we are going through , companies are seeking this more than ever. But how can you increase profitability without drastically increasing costs and risks? Consignment sales can be a great option. Come with me and I will show you the advantages of this model and how our system can help you.
What is a consignment sale?
Consignment is a sales method where the retailer or supplier leaves their products in the care of another company or person, who is then responsible telegram data for making the sales. If the merchandise is sold, the seller receives a commission (previously established between the parties); if not, the products are returned to the supplier, without any costs or fines. Practical, right?!
What are the advantages of consignment?
Working with consignment sales brings advantages to both sides, both for the retailer who supplies the merchandise and for the seller. In short, the following happens: for the supplier, the advantage is being able to take their product to a larger number of consumers business productivity: how the secrets of “a+ students” can inspire your company. without increasing costs with employees, rent, among others. For the sellers, it is having an extra income (or even the main income), without the need to invest in inventory and almost no losses.
Of course, the advantages are not limited to this and we will talk about some of them now:
For the supplier:
You don’t need a physical store or e-commerce to chile business directory display your products. Or invest in larger spaces and more robust platforms. Of course. These are also ways to increase revenue and should be considered. Everything will depend on the style of the business;
There is no need to bear extra costs related to the exchange of defective or expired goods.
Possibility of having products on several purchasing fronts.
No worries about production, development, inventory and other processes involving the product;
No need for storage space if necessary. Just clear what has already been sold and get a new batch of products.
Not to suffer losses if the product is not sold.
>Even the consumer benefits from this sales model. As they will have the product more easily available, at reasonable prices and with a purchase guarantee.
What about the disadvantages?
Compared to what has already been explained in this article, the disadvantages of selling on consignment are much lower. The main disadvantage for suppliers will be in cases of working. With products that have a latent expiration date and consumption. For sellers, on the other hand, it is having to depend on third parties to have the products. The ideal is to work with trustworthy people/stores.
One concern that some of our clients report when they decide to work with consignment. Sales is how to carry out reliable management. In these cases, we put their minds at ease by showing them how our solution does this with excellence .