Your consignors are your suppliers. The terms you set — the split, the payout, what happens to unsold items — decide whether they come back. Here's how to get them right.
The split is the consignor's share of the sale price when an item sells. It's tempting to treat it as a fixed policy, but it's really part of your pricing: the split you offer determines the price you can list at and still hit your margin. Set it so both sides come out ahead at your typical price points, not just your best ones. Some stores vary the split by price band or by how quickly an item sells — just keep it simple enough that a consignor can understand it at a glance. It pairs directly with your pricing rubric (see how to price used clothing for resale).
Nothing loses a consignor faster than being unsure when — or whether — they'll get paid. Decide and publish the basics: when payouts happen (on a schedule, or on request above a threshold), how they're paid (store credit, cash, transfer), and any minimum. Then pay reliably. Predictable payouts are the single biggest driver of repeat consignors, and repeat consignors are the cheapest, most relevant inventory you'll ever get.
Every consignment relationship needs a clear answer to "what if it doesn't sell?" Set a consignment period, a markdown schedule during it, and a rule for the end: returned to the consignor by a pickup date, or donated/converted to store ownership if unclaimed. Spell it out up front so there's no dispute later, and track each item's age so you can act on the schedule instead of letting stale stock pile up.
A short, plain consignment agreement protects both sides. At minimum it should cover: the split, how prices are set (and that the store sets the final price), the payout terms, the consignment period and markdown schedule, the unsold-item rule, and how loss or damage is handled. Keep clear records of who brought what, what it sold for, and what's owed. (This isn't legal advice — have a local professional review your template.)
Fair splits, reliable payouts, and clear terms compound: happy consignors bring you more and better items, and tell others. The operational job is to make consigning with you easy and transparent end to end. That starts at intake — when sellers can submit by photo, see their items screened against your rules, and know exactly what you accepted and why. That's the front door Tag to Rack builds: a clean, consistent intake with a full record of every approval, so the relationship starts on trust. See how it works.
Sellers submit by photo, items are screened against your rules, and every approval is logged — so terms and records are clear from the first item.