Direct Selling vs. Consignment: The Best Way to Sell Your Watch

You may have several reasons to sell your luxury watch. Perhaps you’re collecting funds, have a few pairs of watches and fancy refreshing your collection, or you’ve just fallen out of love with it (we seriously hope that’s not true).

The horological world is full of exciting possibilities, and if you’re really looking forward to selling your watch, we’re here to help.

Without further contemplation, let’s address the basic question.

How to sell your watch?

The million-dollar question is, ‘Which method is the best to sell my watch?’ Contrary to popular belief, visiting a store is not the only way to sell watches; there are actually a few options. But choosing the right method can be a minefield with so many fraudsters around.

Here, we choose the two most prevalent options to sell your watch:

• Direct Sale
• Consign your watch

Both methods offer unique benefits and drawbacks, and the one you choose depends on your circumstances and preferences.

Let us help you understand the concept of directly selling vs. consignment to ease your decision-making.

What is a Direct Sale?

Direct selling means selling your watch to a dealer who buys it directly from you. With an outright sale, you get your money immediately without any delay. It is fast, efficient and ensures instant settlement.

How it works:

• You visit a reputed dealer or watch buyer with your luxury watch.
• The dealer will make you an offer for your luxury watch based on various factors, such as the brand, model, age, condition, material, provenance, rarity, box and papers, and the current market price of the watch. The dealer will also consider the overall costs and business overheads.
• If you accept the offer, the dealer will pay you the full amount immediately.

Please Note: The amount you paid for the watch at the time of buying is kind of irrelevant here. It is all based on the factors mentioned above. A reputed dealer lays out a transparent selling process and offers you cash for your watch or initiates a bank transfer, whichever is feasible for you.

What is Watch Consignment?

In simple words, consignment means a third party is selling your watch on your behalf. They usually deduct a certain percentage as a commission fee or as a percentage for the whole selling transaction.

There’s no money exchange when you hand over the watch at the beginning of the partnership, and you don’t lose control of your watch under consignment. Only when the consignor has set up a successful sale do they charge a commission payment, referred to as ‘fees’. It is generally 10-30% of the sale price.

Here, both of you work towards a common goal—selling the watch for the highest possible price and as quickly as possible. The consignor’s job is to find you the best buyer for your watch and then take a cut of the sale as a commission.

How it works:

• This process involves two parties: the consignee (you) and the consignor (the person who sells the watch on your behalf).
• The professional is responsible for dealing with all the admin necessary to sell the watch from start to finish and takes all the hassles to help you avoid the perils of selling a watch.
• Once you consign your watch to a reputed professional, they will list it on their platform and stores. This exposes your watch to a much broader audience who are most interested. The consignor promotes and markets your watch on their website and social media channels and does the selling on your behalf.
• The experts ensure you get a fair and competitive price for your watch. Once they find the right buyer, they sell the watch on your behalf and charge their commission based on the sale.
• They accept payment only as commission fees and deduct the amount from the sale proceeds.

Please Note: The consignor discusses your options for selling your watch. This includes the prices you’d be willing to accept and the time frame within which you want the watch sold.

Moreover, if they’re unable to complete the sale because your price is too high or the buyer backs out at the last minute, the agreement will be terminated, and you will receive the watch back.

Direct Sale vs. Consignment – Advantages & Disadvantages 

Selling a luxury watch is a crucial decision, and you should be fully aware of the advantages and disadvantages of both methods to choose your best option.

Advantages of ‘Direct Selling’

1. Fast Payment

One of the primary benefits of selling your watch directly to a buyer is the immediacy of the payment. Unlike other forms of selling that may require waiting for funds or dealing with delayed payments, direct selling ensures quick access to funds, which is particularly beneficial during urgent cash crisis.

2. Low Risk Involved

Face-to-face interaction with the buyer eliminates the risk associated with shipping or payment. Communicating directly with the buyer facilitates better negotiation as the dealer addresses your questions or concerns, leading to a more satisfactory transaction. You can be more confident in the legitimacy of the buyer and the transaction process, ensuring a safe and secure sale.

3. Low Hassle

Selling your watch directly is a low-hassle process; you can walk out with your cash in just a few minutes. Moreover, any dispute or issue that may arise can be addressed and resolved immediately. This immediate solution avoids the prolonged communication that can occur with other forms of transaction, making the process faster, smoother and more efficient.

4. Maintain Privacy

A direct sale usually happens in a safe and discreet environment, such as the reputable watch buyer’s or dealer’s location, adding an extra layer of security. Completing the transaction in a private and discreet setting where both parties can feel secure further enhances the trust in the transaction.

5. Straightforward Process

Direct sales offer a simple and straightforward process. If you accept the dealer's offer, the transaction can be completed in a single day, and there is no need for ongoing involvement in the sale.

Drawbacks:

• You may receive a lower value for your watch. Businesses intend to make money from your watches, so they will always knock off a fair bit of value before making an offer.
• Risk of dealing with scammers and the integrity of enquiries
• You lose out on exposure and, therefore, miss out on potential cash and don’t receive genuine financial value.
• It may attract selling fees.

Advantages of ‘Consigning your Watch’

1. Get Higher Return

In some cases, you may find that consigning your watch fetches you more cash for your timepiece than you originally targeted. The experts leverage their expertise and market knowledge to secure better prices. Also, the consignor earns only a commission fee at the end of the day, which is perfect for the discerning seller. After all, who doesn’t like a few extra pounds in the pocket before the payday?

2. Work with Trusted Professionals

The watch consignors have extensive knowledge about the watch market and understand the dynamic market trends and conditions like no other. They use their network links and honed selling skills to get you a potentially higher selling value for your luxury watch.

3. No hassle on your part

A lot of hassle and headache come with selling watches on your own. But, dealing with a consignor makes it easy and hassle-free for you as the professionals take care of the watch sale throughout. This includes marketing, negotiating with the buyers, managing transactions, sorting out delivery and other annoyances involved in the selling process, saving you time and effort.

4. Maximum Exposure

When you partner with a reputable consignor with industry links and connections, the risk of securing a low value for your watch is almost eliminated. They have connections with a wide range of people and companies, as well as collectors and enthusiasts, who may be readily interested in your watch and offer the best value possible.

5. Retain Ownership

Unlike direct sales, where you lose ownership of your watch as soon as the transaction is completed, consignment ensures you retain ownership of your luxury watch throughout the selling process.

Drawbacks:

• It can be a lengthy process with no guarantee that your watch will sell
• Risk of being partnered with an unreliable consignor
• Waiting for sale before settlement
• Consignment shops charge a commission fee ranging from 10% to 30% of the sale price. Research and compare to select the one with a reasonable fee structure.

Direct Sale vs. Consignment – Which Should You Consider?

Both methods have unique advantages and potential drawbacks. Therefore, it’s up to you to decide which option is best for you. Assess your priorities, comfort, and timeline with the watch-selling process to determine which options suit your situation.

You can consider things like:

Time

A direct sale is obviously faster than a consignment, which may take weeks or months to complete.

Payment

Direct sale provides immediate cash payment, while consignment involves waiting for the sale before receiving the payment. However, with consignment, there are higher chances of receiving more value if the consignor finds a buyer offering a higher price.

Risk

With direct sales, the risk transfers to the buyer immediately once the transaction is complete. On the other hand, with consignment, the consignor holds the risk until the watch is sold, and the partner must return the watch to the consignee if it is unsold.

Ease of transaction

With direct sales, you need to find the right dealer and handle the transaction. With consignment, your selling partner is responsible for promoting and marketing the watch, including negotiating and handling the transaction. 

Choosing the Best Dealer for Direct Watch Sales or Watch Consignment

Regardless of the channel you choose to sell your watch, it’s important to trust a reliable source to ensure your transaction goes smoothly. Here’s how you can do that:

Check for the dealer’s reputation

Whether you are consigning your watch or selling directly, it’s imperative to look for the dealer’s online reviews and ratings on platforms like Google to ensure they have a solid reputation. You can also seek advice from your friends or fellow watch enthusiasts to make an informed decision.

Research Expertise and Experience

When selling something as valuable as luxury watches, it’s important to prefer dealers with years of experience and expertise in the industry. Choose a dealer specialising in watch consignment or watch sales to ensure you make the best deal.

Assess Transparency

The dealer should be willing to provide detailed information about the selling process, including pricing, marketing strategies, and mode of payment or extra fees involved. It’s important the dealer is upfront about their commission or pricing strategy to avoid discrepancies later.  

Check Payment Options

Ensure the dealer practices safe and secure transaction methods to protect your personal information. Understand the payment method and also how long it will take for the dealer to offer the funds after the sale.

Read the Terms & Conditions

Carefully read any agreement or terms and conditions before agreeing to the sale. Review the pricing, fees, comission or any other condition. Check if the dealer has a return policy for unsold watches and understand how you can retrieve your watch.

Evaluate the Marketing Strategy

This is specifically true for watch consignments, as the dealer will promote your luxury watch on various channels and platforms. To reach a broader audience, enquire about the dealer’s advertising strategies, including social media promotion, online listings, and in-store promotion.

Visit the location

It is advisable to visit the dealer’s location or store to get an idea of their professionalism and business operations. Moreover, meeting your dealer in person will ensure the transaction's legitimacy and help you gauge the dealer’s expertise and trustworthiness.

After Sales Service

While many of you might not prioritise it, choose a dealer that provides full support even after the sale. A reputed dealer is always willing to offer good after-sales support and address any concern you may have after the sales or consignment period.

Sell Your Watch Directly or On Consignment with the Luxury Hut

Want to sell your watch directly? The Luxury Hut offers a same-day watch selling process, ensuring you get your cash instantly. Our watch specialists will assist you throughout the process, and provide complete comfort and confidence from the moment you walk into our safe and secure Hatton Garden store in London. You can also get a FREE valuation for your watch by filling in our online form.

Alternatively, sell your watch through consignment with The Luxury Hut. This means that our experts will effectively market your timepiece through our established London store and our online sales channels, ensuring maximum exposure to potential buyers.

We offer a seamless watch consignment service, ensuring you can count on our excellent service while we sell your timepiece at the best sale price for you. As the seller, you can trust us completely with funds, and our commission fee becomes payable only when and if the watch is sold.

Whether direct sales or consignment, The Luxury Hut provides a high-quality service to secure the best price for your valuable timepiece.

Please contact us on 0207 242 9160 for more details.

PARTING THOUGHTS..

Choosing between direct sales and consignment is an individual decision that depends on your needs, circumstances, and preferences. So, start by evaluating your priorities.

A direct sale offers the benefits of instant payment, making it ideal for those who need quick money. On the other hand, consignment can yield higher returns but requires more time and involvement.

Therefore, it’s advisable to carefully weigh the pros and cons of each method and choose the option that best suits your goals.