60 Second Ideas - Hi Tech Consignment

Today's Show Links:
http://cutxpaste.com

Micro fashion brings together some of the hippist and chic fashion businesses to be found. Dominated by creative, crafty and fashion obsessed young women, Whether it's Reconstructed or vintage clothes, hand crocheted purses, cute beaded hula girl earrings, these young entrepreneurs are capitalizing on one of the hottest trends around. But what if you don't sew, crotchet, craft or otherwise simply don't have the aptitude to design and produce to die for one of kind products?

Can you still capitalize on the micro fashion trend? The good news is Yes!

Meet Jenny Kwok. A twenty something California native turned New Yorker who runs a site called cutxpaste at http://cutxpaste.com - A small e-commerce Web site selling clothes and accessories. But what makes Jenny's site different is that she focuses on unique handcrafted goods and offers a consignment program for other crafters and designers. Note that Jenny does not make products to sell on her site herself. Launched in in the summer of 2002, Jenny didn't expect a huge response. She simply put the site up to sell some cool stuff from a designer or two but then started meeting other young women who made amazing things and didn't have a Web site or a venue to sell what they made. So a few months after her launch, she started offering consignment. The site gradually picked up steam as more and more people heard about it and today Jenny has now offered unique handcrafted products from some 70 consignment partners. Most of which have sold at least one item with many selling out and adding additional products.

Why would micro fashion and accessory designers go to cutxpaste rather than eBay if they wanted to sell something on the web?

The short answer is price and convenience.

According to Jenny, Most people who go to eBay are looking for bargains. People who go to cut + paste are willing to pay extra when they realize that extra work went into the construction of a garment and it's different from anything else they've seen in stores.

Another reason is that cutxpaste is highly specialized and smaller, making shopping for that one of a kind handcrafted fashion item or accessory easier and less time consuming. Jenny reports ultra dedicated customers who continually visit her site, driving up traffic and sales. Regular site visitors check out new the new stuff and many give feedback on items that are currently on sale. All of Jenny's consignors are female and most of the customers are female. And most consignors and customers themselves are Generation Xers in the 18 to 30 set.

Here is how cutxpaste's consignment option works.

Jenny charges a 40% consignment fee on the price of the items that a partner will sell. The potential consignment partner fills out a form and sends digital photographs of their items for approval. Jenny then selects whatever she thinks will do well on the site and upon approval, the consignor ships the products to Jenny where she takes photographs and puts them up on the site for two months. The consignors sets the price of their own products and gets 60% of that price if one of their items sell. anything that does not sell in that two month period is sent back to the consignor, so nobody ever loses.

The opportunities here are exciting to say the least. If you are a designer or crafter, try applying for consignment on http://cutxpaste.com to test your wares. If you are successful you can put up your very own site. If you are not cut out to be a designer or crafter and would like to profit from the micro fashion trend, try this simple and low cost small business idea which is perfect for stay at home moms and young women.

While Jenny Kwok's cutxpaste is national in scope with consignors from all over, think local here, at least to start. Take a look at http://www.buyolympia.com. While not exactly a consignment site. Buy Olympia features all sorts of products that are either made in or related to Olympia, Washington.

Why not build a website dedicated to local products in your neck of the woods, giving designers, crafters, and artists an online venue to sell their wares through a consignment option similar to Jenny Kwok at http://cutxpaste.com. Print flyers and take them to craft fairs, supply stores, and boutiques that feature local products. Send out some local press releases, submit your site to the search engines and local directories and I am convinced you will have a winner.

The start-up costs are low, the risk minimal, and the profit potential high.

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