How Does Consignment Work?

Consignment works in five steps: you bring items in, the shop accepts the ones it can sell, it prices and displays them, it marks them down over a set period, and it pays you a percentage of whatever sells.

Step 1: bringing items in for consignment

Most shops take items by appointment or on set days. Bring things clean, pressed and in season. Expect the shop to turn down a third or more; that is normal and not a comment on you.

Step 2: how consignment shops price items

The shop prices items, usually at 25 to 40 percent of retail for clothing and higher for furniture and designer goods. Some let you set a floor price on expensive pieces.

Step 3: the consignment contract

The contract states the split, the consignment period, the markdown schedule and what happens to unsold goods. Get a copy. The details vary a lot between stores, and that variation is why it pays to compare shops in your city.

Step 4: consignment markdowns

Typical schedules cut the price 20 to 25 percent after 30 days and again after 60. The shop wants turnover; a slow-selling item costs it shelf space.

Step 5: the consignment payout

You get paid after the sale, by check, transfer or store credit, on the store’s cycle. Store credit often comes with a bonus percentage. Ask how you will be told when something sells.

Ready to try it? Start with the consignment stores near you, or read about how to consign clothes and furniture.