What is an account balance?
An account balance is the total amount of money a consignor has earned from sales that haven't been paid out yet. Every time one of their items sells, their share of the sale (determined by the consignor split) is added to their balance.
Why does an account balance matter?
For consignors, their account balance is the clearest measure of how well their items are performing. It's often the first thing they check when they log in or call the store.
For stores, account balances represent a real financial liability — money you're holding on behalf of consignors that you'll eventually need to pay out. Tracking them accurately isn't just good customer service; it's essential bookkeeping.
How does an account balance work?
The balance updates as sales happen. Here's the basic flow:
A consignor brings in items and they're added to your inventory
An item sells at $50, and your store has a 50/50 split
$25 is added to the consignor's account balance
The balance accumulates until the consignor requests a payout — or until your store issues one on a scheduled basis
Once paid, the balance is reduced by the payout amount
Many stores pay out on a set schedule or set a minimum payout threshold — a floor below which balances aren't paid out automatically. This reduces the overhead of cutting checks or processing payments for small amounts. What that threshold is varies widely by store.
Consignors can often choose to spend their account balance as a form of payment (also known as store credit).
Account balance FAQs
Can a consignor's account balance go negative? It depends on your system, but yes — it can. If your store charges consignor fees (such as intake fees or cleaning fees) that are deducted from the balance, and those fees exceed what a consignor has earned, the balance can dip below zero. Specifics around how you handle that should be spelled out in your consignor agreement.
How often should I pay out consignor balances? It depends on your store's model. Some stores pay on a set schedule — monthly is common. Others pay on demand, whenever a consignor requests it. Either approach works; what matters is that your policy is consistent and clearly communicated upfront.
What happens to a balance when a consignor's items expire off the floor? The balance only reflects what has sold. Expired, returned, or donated items don't affect it — any earnings already in the account stay there.
How do refunds and returns affect a consignor's balance? If a customer returns an item before the balance has been paid out, the consignor's cut of that sale should come back out of their balance. Otherwise stores may have to absorb the loss. To avoid paying out earnings that might still be reversed, some stores wait until a return window is closed before allowing sales to be paid out. Many stores also operate on an all sales final policy, which eliminates the return issue entirely.