If you’ve made it to this page, it means you’re interested in more of the nitty gritty of becoming a member of the Handmade in CA collective. Please make sure you read through EVERYTHING below carefully.

Yeah, we know it's long, but we’ll provide you with all the information you need to make an informed decision. Let’s get started!

Vendor Collective FAQ

Thank you for considering joining our Vendor Collective at Handmade in CA! We know that starting a new venture can be overwhelming, so we’ve put together this FAQ to answer some common questions about consigning with us.

What is the Handmade in CA collective?

The Handmade in CA retail shop features products from a diverse community of unique and interesting local small businesses to form a “vendor collective”.

Our beachfront shop attracts customers and tourists who are looking for one-of-a-kind, locally made products. We believe that by supporting local businesses, we can help strengthen our community and promote sustainable consumerism.

Our goal is to create a supportive and inclusive environment for small and micro-business owners to sell their products in a high traffic, upscale boutique setting that would normally be out of reach for many small businesses.

Key Benefits for Vendors

Joining our Vendor Collective comes with a host of benefits designed to make your consignment experience as smooth and profitable as possible. Here’s what you can expect:

• Hassle-Free Sales: We run the cash register and checkout process, so you can sell items without being present.
• Convenient Labeling: We provide and print barcode labels for your products.
• Sales Tax Management: We collect and pay sales tax on your behalf.
• Operational Costs Covered: We take care of store bills like water, electricity, property tax, liability insurance, and more.
• Staff Management: We hire and train cashiers and staff to ensure smooth operations.
• Marketing Support: We promote and advertise the store to drive traffic.
• Special Events: We host special events to attract more customers.
• Vendor Portal: We provide a robust vendor portal to view sales, manage inventory, and more.

Membership Process

1. Thoroughly read through this information page and confirm your interest:

2. Check out our space and ask us questions:

• We’ll have you tour our little shop in person and choose the space you’d like to showcase your products in. We can discuss terms, conditions, expectations, and chat about anything else that floats our boats.
• To save time, and get sales going ASAP, you may want to consider bringing your products with you along with an inventory list and pricing (even better if you mark each product directly with it’s price on a little stickie or sticker too).
• Even if you don’t decide to leave them right away, it could help you decide how much space you need or in which space they could look best in!
• If everything looks good, we can sign your lease right then and there and get you started that same day with payment!

3. Sign the Vendor Agreement and Pay Your Starting Costs:

• Sign an agreement outlining the consignment terms, including percentage split on sales, consignment period length, and other relevant details.
• Pay your first month, setup fee and security deposit to begin your journey with us. This can be done via Zelle, CashApp, Cashier’s Check or Cash only.

4. Deliver Products with a Price Listing:

• If you haven’t already, start delivering your products to the collective.
• In order to have your bar code labels printed and ready so you can apply them and display your products in your space as you would like, you’ll need to provide us with a list of products, a description and pricing via email at least 3 days before coming into the store.
• If you want to just drop and go and don’t mind if we arrange your products within your space for you, then you can just bring the list with you. If you do this, please mark each product directly with it’s price on a little stickie or sticker so it is easier for us to match it with the list. We’ll create your official bar code label, and get them ready for sale for you – no problem!

Answers to the Most Common Questions

We understand that joining a vendor collective can raise many questions. Here are some of the most common ones:

Where are you located?

We are so excited about our amazing new location in the heart of Downtown Hermosa Beach. Our shop is located in a prime beach and tourist location at 116 Pier Avenue – on the main drive street and pedestrian walkway to all the action on the famous Hermosa Pier as well as the restaurants along Hermosa Avenue.

What are the space rental rates and commission fees?

We charge a monthly rent for the space and a small commission on sales. These depend on which space you choose. Our rent + commission combination is very competitive, especially considering our high foot traffic location.

We want to ensure that both our vendors and customers are satisfied with their transaction, so we strive to find a fair balance between space rental rates, commission share splits and pricing.

We also offer a "Drop & Go" option which is strictly consignment based with no monthly rental fee but is assessed at a higher commission per sale. This is closest to the traditional retail wholesale model, except you get paid after your product sells.

How and When are Rent and Payouts Made?

Rent is due on the 1st of each month. Handmade in CA will deduct the rent payment and commission from the previous month’s sales. After those deductions, payment via check, Zelle or Venmo will be made to the vendor. If a payout occurs on a holiday or day the store is closed, payment will be made the following business day.

If there is a balance owed to Handmade in CA, we will attempt to run the credit or debit card on file. In the event the credit or debit card declines, vendors will be emailed an invoice for the remaining balance and will have a 5-day grace period to pay the invoice. Payment of the invoice can only be made via check, Zelle, Venmo or cash.

If the invoice is not paid within the 5 day grace period, the vendor’s products will be removed from display in the store and held for pickup. There will be an early termination fee equal to one month’s rent.

What is the lease consignment period, and what happens when it ends?

Each space rental lease consignment period is 4 months. At the end of the period we may mutually decide to renew for another 4 months. At the lease renewal period, Handmade in CA reserves the right to increase rent up to 3%. (This does not apply to our Drop & Go vendors)

What are the startup costs, and what is due at lease signing?

The startup costs for leasing a space at Handmade in CA include first month’s rent, a one-time non-refundable setup fee of $25, and a refundable security deposit of $100. (Drop and Go vendors do not need to pay a security deposit). These costs will need to be paid within 48 hours of lease signing.

Failure to do so will result in the lease being null and void and your space being given to the next vendor on the waitlist.

How is sales tax handled? Who pays and reports it?

Handmade in CA will collect and pay all applicable sales tax on behalf of its vendors. If you have a sellers permit or have an entity and are required to file monthly sales tax reports, you will report $0 in sales for the portion of goods sold at Handmade in CA.

Will I need to pay income tax on my share of the commission earnings?

As an independent vendor, you will be responsible for reporting and paying income tax on your share of the commission earnings from sales at Handmade in CA. At the time of lease signing, you will also need to submit a W9 form to us. You will then receive a 1099 from Handmade in CA reporting your total sales commissions earned at the end of each year.

We recommend consulting with a tax professional to properly handle any tax obligations related to your consignment business. Please note that Handmade in CA is not responsible for collecting or reporting any personal income taxes for its vendors.

Are there any restrictions on what products can be sold at Handmade in CA?

We welcome a variety of handmade and locally sourced products at Handmade in CA. However, we do have some restrictions on certain items and we reserve the right to turn down items we feel aren’t a fit with our vibe. These may include but are not limited to:

• Counterfeit items or items protected by trademarks or copyrights
• Electronic devices
• Weapons (real or fake)
• Sexually explicit items
• Items that endorse or incite hate and/or violence of any kind
• Used items

Am I guaranteed to be the only vendor selling my type of product?

We want every vendor to have the best opportunity to make incredible sales in our shop. While we can never guarantee that you’ll be only one selling your type of product (whether it be jewelry, or hats, or tumblers), we do our best to make sure we have a wide variety of products presented to our customers and make every effort to limit duplicate and similar items being sold at the same time.

What are the store’s operating hours?

We are currently open 7 days week, 10am to 6pm for the busy summer tourist season. The shop is otherwise closed two weekdays a week, the week of Thanksgiving, and two weeks for Christmas and New Years. Store hours and open days may be altered at the discretion of Handmade in CA, without notice.

Is this a temporary space?

Nope! We are locked in for at least 2 years so you can look forward to calling Hermosa Beach home to your products for as many 4 month lease periods as we mutually agree too!

Can I bring in my own shelving, displays, or hardware?

In order to maintain a consistent aesthetic and cohesive shopping experience for our customers, we provide all the necessary shelving, displays, and hardware for vendors to use. If there is a specific display or piece of hardware that you would like us to consider providing, please let us know and we will do our best to accommodate your request.

You can of course bring your own small displays, decor and risers to use within your provided shelving space.

Can I share my space with another vendor?

Due to limited space and safety considerations, each vendor is allocated their own designated area within the store. Sharing spaces with other vendors is not permitted at this time. However, if you have a partnership or collaboration with another vendor, we can arrange for your products to be displayed in close proximity. Please contact us for more information on how we can support collaborations between our vendors.

What are the responsibilities of the vendor in terms of restocking and updating information?

You will receive access to our online vendor portal for managing inventory, viewing sales, and updating product information. It is your responsibility to maintain your product inventory and keep it adequately updated based on sales.

During high-traffic seasons, we will make every effort to work closely with you to ensure that we stay on top of restocking your products in a timely manner to meet customer demand. Your cooperation in managing inventory is greatly appreciated as it helps us provide the best shopping experience for our customers.

How is security and loss prevention handled for consigned items?

The security and protection of your consigned items is a top priority for us. Our store has security measures in place, including 24 hour surveillance cameras and trained staff, to prevent theft or damage to your products.

In addition, we have strict protocols for handling inventory and sales transactions to ensure the accuracy of product information and pricing. We also conduct regular inventory checks to track any discrepancies and address them promptly.

Handmade in CA is not responsible for any lost, stolen, or damaged goods. Any product that is lost, stolen, or damaged will be recorded by Handmade in CA in the vendor portal system. Vendors should deduct these items as inventory lost on personal business taxes or report them to their insurance provider.

Do I need business insurance?

While we have liability and property insurance for the store itself, along with security measures in place to protect your consigned items, we are not responsible for any lost, stolen, or damaged vendor goods, regardless of cause.

Therefore, we highly recommend that you have your own business insurance to cover any potential losses. it is always a good idea for vendors to have their own business insurance. This can provide extra coverage and protection in case of any unforeseen circumstances or incidents.

Having business insurance not only protects your products but also provides financial security for your business. It is important to understand the coverage and requirements of your insurance policy to ensure adequate protection for your consigned items.

If you need a recommendation on a very affordable annual plan (usually just a couple hundred dollars for the whole year with unlimited locations) that allows you to add your pop up markets too, we are happy to point you in the right direction – just ask!

 

We hope this FAQ has addressed your concerns and provided valuable insights into joining our Vendor Collective.  

Ready to get started? Or if you have any additional questions or need further clarification, please don’t hesitate to reach out to us at hello@handmadeinca.com.

Happy selling,

Jeana, Founder of Handmade in CA