Consignment based selling has existed for a long time in the offline retail sector. The concept is loaded with benefits for both the retailer and supplier. Hence it is important that the most popular channel for selling and buying at present, e-commerce employs this method to sell designer consignment concept.
- TimeWise
The time has a huge significance in the process of sending and receiving. Consignment selling creates a platform on which the retailers and the suppliers have plenty of time to identify their requirements. Online Designer stores are often bombarded by the customer’s interest for a certain product. These demands can be just opposite for a particular design of merchandise or an accessory. The uncertainty can reflect on the delivery and availability of stock, which may hamper the service quality. Consignment based selling can resolve these issues eradicating the loss of time between selling and restocking the new arrivals.
- Inventory Woes
Inventory seems an unavoidable component of the system of sale and purchase. Also it is the most exhausting and daunting between to perform on a regular basis. Under consignment method, the retailer is not bound to spend capital on preparing the inventory. The retailers can hold the payment until the stocks have exhausted. Thereby improving the flow of cash. The feature of designer selling eliminates the obstruction that inventory of goods may pose.
Test Lab: New or Old or Failed
Consignment based selling can be used by the online retail stores like a laboratory. Any new design of a product or any alterations in the previous designs can be tested in the consignment. Retailers may be fear that certain design will not do as good as the others and may not approve the sale of the product on their site. The suppliers otherwise have to pressurise the retailers to buy the stock as it is the newly launched design. This may create a situation of conflict. Like the idea and vision for the new style may be varied. Examining the design can not only reduce the risk failure in terms of sales. It can enable the online retailers to stock up the product if the response is positive. Another benefit is that the supplier company may reintroduce the pattern of merchandise that has earlier failed to impress the customers, keeping in mind the latest trend.
Irrespective of the role of the person or organisations involved in the supplying, selling and buying cycle. There is a potential risk of loss of business and reputation that would result in loss of customers. Theories have suggested a loss of the reputation can yield damaging consequences to an organisation.
- Online Retailing: Redefined
Online retailing that has made the retail stores and markets shopping substitutes. The e-commerce industry is constantly evolving and consignment selling has the potential to redefine the system. It works as per the rules. The is pay for what sells. Meaning that the retailers are supposed to pay the suppliers only for what has been sold. It is for the supplier to ensure all the designs that have been included in the consignment should be appealing to the customers to buy. Therefore, the mental load that is on the online retail stores to sell designer goods is waived off significantly as the supplier takes care of the marketing value of the product in accordance with specific parameters.
Authentic Designer Handbag : Online Designer Consignment Shops
