Consignment lets you sell items without buying them upfront, reducing risk while building relationships. Whether you're accepting consignment from others or placing items with consignment shops, understanding the model is key to profitability.
Two Sides of Consignment
Accepting Consignment: You take items from owners, sell them, and split the proceeds. No upfront cost, but you invest time and platform fees.
Consigning Items: You place your items with consignment shops or services. Less work, but you give up a percentage.
Typical Consignment Splits
| Item Value | Consignor Gets | You Keep |
|---|---|---|
| Under $50 | 40-50% | 50-60% |
| $50-$200 | 50-60% | 40-50% |
| $200-$500 | 60-70% | 30-40% |
| Over $500 | 70-80% | 20-30% |
💡 Pro Tip: Higher-value items command lower percentages for you, but the dollar amounts are larger. 25% of a $1,000 sale ($250) beats 50% of a $100 sale ($50).
Essential Agreement Terms
- Split percentage: What each party gets after sale
- Who pays fees: Platform fees, shipping, PayPal fees
- Pricing authority: Can you lower price? By how much?
- Consignment period: How long before item returns to owner
- Unsold items: Return to owner, donate, or discard?
- Payment timing: When do you pay the consignor?
- Loss/damage: Who's responsible?
Finding Consignors
- Word of mouth - friends, family, their networks
- Social media announcements
- Estate attorneys handling liquidations
- Senior move managers and downsizing services
- Local classifieds: "I sell your stuff on eBay"
- Your existing customers often have items to sell
Qualifying Items
Not everything is worth your time. Evaluate:
- Is it worth at least $30-50 after sale?
- Is it sellable as-is?
- Can you find comparable sold items?
- Does the consignor have realistic expectations?
⚠️ Red Flag: Consignors with unrealistic expectations create conflict. Either educate them upfront or pass on the items.
Consignment Services
| Service | Your Split | Best For |
|---|---|---|
| Local shops | 50% | Clothing, home goods |
| The RealReal | 55-85% | Designer fashion |
| Rebag | 70-80% | Designer handbags |
| Chairish | 70% | Furniture, decor |
Record Keeping
- Consignor contact information
- Item description and photos at intake
- Agreed minimum price and split
- Sale date, price, and payment date
Scam Awareness
- Stolen goods: Get ID, have consignor sign ownership declaration
- Fake items: Authenticate luxury goods before accepting
- Price manipulation: Some try to get items back after seeing high interest