Consignment vs Marketplace Models
Who owns the goods, and who carries the risk.
Consignment and marketplace models differ on a single decisive question: who holds the goods and who bears the risk if they do not sell. In consignment, the operator holds the item and earns a commission. In a marketplace, the seller keeps the goods and the platform just enables the sale.
That difference drives everything else. Consignment demands warehousing and operations but controls the experience. Marketplaces stay capital-light but depend on sellers for quality and fulfillment.
The right model depends on inventory value. High-value goods justify the cost of consignment's control and trust. High-volume, low-value goods suit the light, scalable marketplace approach.