According to the site, there are more than 100 million items for sale on the platform, which consists of more than 60 million community members. At Around the Block, we approach all consignments with professionalism and compassion. Whether you are downsizing, renovating, redecorating, or have an entire estate to manage, we have the consignment percentage expertise to help! We stand by everything we do and ensure that all consignments in our store are cared for as if they were still in your home. Some products may not be suitable for shipping due to size, fragility or high packing and shipping costs. For the sake of simplicity, I’ll leave those situations out of this discussion.

  1. There are also situations when the seller’s percentage might be higher.
  2. The rate is commonly agreed to upon consignment of inventory and is often stated in written consignment agreements (signed by consignors and consignees).
  3. In a shifting economy, individuals and businesses are looking to buy and sell goods on consignment as a way to generate extra income.
  4. The primary disadvantage of the consignment model for producers or owners is that consignment shops typically charge a high level of commission on consignment sales.

A software vendor in Miami, FL actually rigged his software to hide the actual sale price so consignment shops could literally lie about the sale price and pay consignors less. He publicly encourages users of his software to employ the tactic to ‘increase store profits’. (The software name is similar to ‘Consignpo’.) This can be detected by having someone purchase something that you have on consignment. See if the sales price matches the shop’s representation of the selling price.

Even within the store, you need to be sure that your products are right in the line of customer traffic. Your products stand a lesser chance of getting purchased if it is tucked in the furthermost corner of the store where customers hardly ever go. If you can arrange to have your products included in the store window display, so much the better. Another option is that you might be the one to post an item for sale on the website. The company whose website you sold the item on takes a cut of the same.


The consignor is the one who owns the item, and the consignee is the one selling it. In most cases, the consignor will set a price for the product, and the consignee will take a percentage of that sale as their fee. The shop will usually take anywhere from 30 to 50 percent of the sale price of craft consignment items, with 40 percent being typical. A new store owner who needs to be very careful about overhead may be more open to trying an unproven line and accepting items on a consignment basis. However, a new store owner may not have the experience necessary to successfully promote your products or manage the consignment relationship. Most craft professionals will probably want to look at more upscale consignment opportunities.

What is the difference between a thrift store and a second hand store?

If they sell, they make money, if they don’t sell, they don’t lose money. If your products sell, you make money, if they don’t sell, you get the product back and could be taking a loss or incurring more costs to try to sell them on your own. You, the maker, may be able to collect a higher percentage of each sale if you have an in-demand product and have been approached by a consignment shop. If the consignment shop is new, or lesser-known, you may have the upper hand and reach an agreement where you receive the greater commission percentage. Consignment selling can be a welcome strategy for handmade business owners.

The price they pay for this exposure may be to accept a smaller percentage of the proceeds from the sale of their goods. You get $25 per item when the store owner pays for the purchase of your goods. However, if your items sell well, you will likely get repeat orders. Some online shops and a small number of craft shows charge you a percentage of the sale price when you sell your item through their venue.

One method of extending your inventory as a small business without the cost of purchasing the product beforehand is through consignment sales. However, when the item is tagged and placed on the sales floor, it shows a price of $21. If your consignor split is 50%, the consignor receives $10 and you receive $10, plus the $1 Buyer’s Fee. Consignment is based on a percentage of the final sale price of the item. The consignment percentage refers to the portion of the sale that the consignor gets, while the consignee gets the rest.

If you drop off 10 items, they pay you for 7, but only return 2, you won’t eat the cost of that missing product. They signed an invoice agreeing they were given 10 products, which you should be paid for or given back. If you’re not, they should be held responsible for paying for that lost product. If you’ve made their life easy by providing products on schedule and being an organized business owner, and your products have sold well in there store, they should be open to giving you a higher commission. To calculate the Consignment Percentage, divide the share of sales disbursed to consignors by the total sales amount, then multiply by 100.

Advantages of consignment

If your products are featured in a high-traffic spot, that’s an excellent sign the shop owner is committed to promoting them. They can purchase items for less than they’d pay in a traditional retail store. This perk applies to any second-hand shop, of course, not necessarily just consignment shops. Thrift shops and second-hand stores are typical examples of consumer-facing consignment businesses.

Understanding Consignment

The RealReal handles all consignment arrangements, and the pricing, listing, and selling of the items, and consignors receive a portion of the selling price once an item is sold. A consignment percentage split between the seller and consignment shop owner is necessary to ensure that both the sales outlet and the artisan/fabricator can profit from selling the consigned items. There is less risk in “borrowing” products from people or businesses and only paying for them if they sell. When crafters consign their products, they are exposed to a new audience of potential customers. The consignment store allows them to show off their work to people who may not have seen it otherwise. In addition, being in consignment shops and thrift stores allows crafters to build name recognition and establish themselves as credible artists.

So I believe that if the shop or gallery keeps 50% of the retail price, then you should receive your 50% up front by wholesaling your jewelry. When I consign my jewelry to shops or galleries, I don’t go lower than 60/40 (where I receive 60% of the proceeds from the sale). If the retailer doesn’t have a standard agreement, you can find a sample consignment agreement form here. It will provide a solid starting place, and you can adjust any elements of the form to suit your own specific circumstance and agreement. The shop owner will be making judgments that will impact her decision from the initial meeting. Remember, she’s not just assessing whether your products would sell well in her shop; she’s also assessing whether you are a person she would want to work with.

Many consignment shops offer store credit at a higher percentage than if you accept cash. If the consignment shop doesn’t focus on selling handmade products, their commission percentage may again be higher. For example, if they’re selling second-hand goods, they’re likely not dealing with other businesses; they’re dealing with people who want to make a little extra money while getting rid of their old stuff. The consignment shop has more costs to cover to sell those used clothes, than the person who owns the clothes does, so the consignment shop will take a larger percentage of the sale. Most consignment shops have standard fee schedules that indicate the percentage of the sales price that is paid to the shop and the percentage paid to the seller.

Increasingly, retailers are using consignment to supplement their traditional business with resale outlets. A person wishing to sell an item on consignment delivers it to a consignment shop or a third party to do the selling on their behalf. Before the third party takes possession of the good, an agreement must be reached as to the revenue split when the item is sold. Just like every other retail transaction, consignment shops are also going online.

In a shifting economy, individuals and businesses are looking to buy and sell goods on consignment as a way to generate extra income. The distribution of sales revenue often depends on a consignment business’s brand reputation and sales volume. With SimpleConsign, consignors with at least one item in inventory are charged on the last day of the month. There are also online furniture consignment platforms such as Everything But the House, Chairish, and 1stdibs.

Check if the store has fire alarms and water sprinklers to protect the items in case of fire. Choose a store owner who is willing to protect your items, even to the extent of providing locked cases for valuable products. If not, then maybe other people feel the same too, and hence your chances of selling your items are slim at best. Also check merchandise condition, how merchandise is displayed, and the prices of comparable items.