How To Build Your Online Consignment Business
- By Chris Malta & Robin Cowie
- Published 08/16/2007
- Business
- Unrated
Chris Malta & Robin Cowie
Product Sourcing Radio is Created and Hosted by Chris Malta and Robin Cowie of http://WorldwideBrands.com, Home of OneSource: The Internet's Largest Source of Genuine, Factory-Direct Wholesalers for online sellers. Visit http://www.WorldwideBrands.com for more FREE E-Biz & Product Sourcing info!
View all articles by Chris Malta & Robin Cowie
Get the Word Out
Consignment is a simple concept — taking other people’s products and selling them for a percentage of the sale. According to renowned eBay PowerSeller Skip McGrath, of http://SkipMcGrath.com, “Consignment selling is the fastest growing phenomenon on eBay. The key to successful online consignment is marketing your services.”
He recommends four techniques to help you promote your business and build up a customer base: advertising, public relations, networking, and creating a web site.
1. Advertising. The market you're in will determine your course of action here.
The Retail Market — selling products for ordinary people:
• Door hangers.
• Classified ads in small- to medium-sized market newspapers.
• Flyers.
• Posters.
• Radio spots.
• Attorneys — estate executors and bankruptcy processors.
The Business to Business Market — selling excess inventory for retailers and manufacturers:
• Classified ads in business journals.
• Direct mail.
• Attorneys — bankruptcy processors.
• Local charities and not-for-profits. Rather than always asking their supporters for money, they can ask them to donate products you know will sell. So you're building relationships that are profitable for everyone.
2. Public Relations.
• Write a press release, print out a copy and mail it to all your local newspapers. Often, they’ll promote a new business in hopes that they’ll advertise wit
h them in the future.
• Community groups — the Lions, the Jaycees, your local chamber of commerce are — especially useful for business marketing. Your chamber of commerce should have a newsletter that you can advertise in and that every chamber member in town will get. However, if you do sign up for a community group, volunteer for something. You’ll make more connections, and be taken more seriously, than if you just show up at the meetings to gain contacts.
3. Networking.
•Implement the McGrath 3-foot Rule. Explains McGrath, “I always have business cards on me, and anyone that gets within 3 feet of me is going to learn what I do.”
•Cold call on potential customers. Walk around the business section of town (for retail, try your neighborhood), and let them know that you can help them liquidate their surplus merchandise. If businesses seem reticent, offer to let them give you one or two pieces as a trial, and then make sure you do a good job selling those.
•Build a database of your customers. Collect business cards and stay in contact periodically. Send an email; send a Christmas card. Retaining customers is easier than finding new ones.
4. Create a website
• Try to include your city and the word “consignment” in the title — these are very popular search terms right now.
• Give your consignors a link to your site so they can check the status of their own auctions.
• Send out emails or a newsletter through your web site to your customer database.
You may find some methods work for you better than others, but the main thing is just to let the world know you’re there.
Consignment is a simple concept — taking other people’s products and selling them for a percentage of the sale. According to renowned eBay PowerSeller Skip McGrath, of http://SkipMcGrath.com, “Consignment selling is the fastest growing phenomenon on eBay. The key to successful online consignment is marketing your services.”
He recommends four techniques to help you promote your business and build up a customer base: advertising, public relations, networking, and creating a web site.
1. Advertising. The market you're in will determine your course of action here.
The Retail Market — selling products for ordinary people:
• Door hangers.
• Classified ads in small- to medium-sized market newspapers.
• Flyers.
• Posters.
• Radio spots.
• Attorneys — estate executors and bankruptcy processors.
The Business to Business Market — selling excess inventory for retailers and manufacturers:
• Classified ads in business journals.
• Direct mail.
• Attorneys — bankruptcy processors.
• Local charities and not-for-profits. Rather than always asking their supporters for money, they can ask them to donate products you know will sell. So you're building relationships that are profitable for everyone.
2. Public Relations.
• Write a press release, print out a copy and mail it to all your local newspapers. Often, they’ll promote a new business in hopes that they’ll advertise wit
• Community groups — the Lions, the Jaycees, your local chamber of commerce are — especially useful for business marketing. Your chamber of commerce should have a newsletter that you can advertise in and that every chamber member in town will get. However, if you do sign up for a community group, volunteer for something. You’ll make more connections, and be taken more seriously, than if you just show up at the meetings to gain contacts.
3. Networking.
•Implement the McGrath 3-foot Rule. Explains McGrath, “I always have business cards on me, and anyone that gets within 3 feet of me is going to learn what I do.”
•Cold call on potential customers. Walk around the business section of town (for retail, try your neighborhood), and let them know that you can help them liquidate their surplus merchandise. If businesses seem reticent, offer to let them give you one or two pieces as a trial, and then make sure you do a good job selling those.
•Build a database of your customers. Collect business cards and stay in contact periodically. Send an email; send a Christmas card. Retaining customers is easier than finding new ones.
4. Create a website
• Try to include your city and the word “consignment” in the title — these are very popular search terms right now.
• Give your consignors a link to your site so they can check the status of their own auctions.
• Send out emails or a newsletter through your web site to your customer database.
You may find some methods work for you better than others, but the main thing is just to let the world know you’re there.