What Is a Fair Percentage for Consignment?

Understanding Consignment Percentages

• A fair consignment percentage is crucial for both the seller and the shop owner to profit from the sale.
• Consignment percentages can vary from 25% to 60% of the sales price.
• Consignment agreements define the rates and terms between consignors and consignees.

Consignment Pricing

• The formula for consignment pricing is based on the agreement between the parties involved.
• The fair commission depends on various factors like expenses, profit, relationship, and item value.

Advantages and Disadvantages of Consignment

• Consignment shops delay payment until the item is sold.
• Sellers can lose control over product marketing and sales in consignment arrangements.
• Determining a fair consignment percentage is subjective between the parties involved.

How Profit is Calculated

• Consignment stores typically charge 25-60% commission on sales price.
• Sellers keep 60% profit on each item sold in consignment.
• Price items at 25-40% of the original price with consideration for brand and condition.