What is a consignor split?
A consignor split is the percentage of a sale price that a consignment store pays out to the consignor — the person who brought in the item — versus the percentage the store keeps as its commission.
By convention, a consignor split is expressed as consignor percentage / store percentage — so a "60/40 split" means the consignor gets 60% and the store gets 40%. While this convention is the standard, you should always specify to avoid confusion.
Why does the consignor split matter?
Set your split too generously — say, 70/30 — and you may not be covering your overhead, especially on lower-priced items. Set it too lean — say, 40/60 in your favor — and you may struggle to attract quality consignors, particularly if competitors in your area are offering better terms.
The split also shapes consignor behavior. A consignor who feels fairly compensated brings back better inventory, refers friends, and is more forgiving when things don't go perfectly. One who feels shortchanged might move on.
Beyond the individual relationship, your split structure affects the economics of every sale you make. Because consignment stores don't buy inventory upfront, the split is where your gross margin is determined. Understanding what your split needs to be — not just what's conventional — requires knowing your actual costs.
How does the consignor split work?
The split is applied to the final sale price of an item — what the customer actually paid, not the original asking price. If an item was listed at $60 but sold during a sale at $48, the split applies to $48.
Some stores calculate the split before deducting any fees; others take fees off the top first. The latter is increasingly common and generally fairer to both parties, since neither side controls costs like credit card processing. Whatever your approach, it needs to be spelled out clearly in your consignor agreement — ambiguity here is a common source of disputes.
Splits Compared:
Sale Price | Split | Consignor Gets | Store Keeps |
|---|---|---|---|
$100 | 60/40 | $60 | $40 |
$100 | 50/50 | $50 | $50 |
$40 | 60/40 | $24 | $16 |
$40 | 50/50 | $20 | $20 |
Typical consignor splits by category
Splits aren't one-size-fits-all — they vary meaningfully by what you're selling. Higher-value categories tend to command more favorable terms for the consignor, both because the dollar amounts justify it and because consignors of premium goods have more options and more leverage.
These are general ranges, not rules. Your local market, overhead, and store positioning all matter. Use these as a benchmark, not a ceiling or a floor.
Category | Typical Consignor Split |
|---|---|
Clothing (value/thrift) | 40–50% |
Clothing (mid-range) | 50–60% |
Furniture | 50–70% |
Sporting goods | 50–70% |
Luxury goods & collectibles | 60–90% |
Consignor split types
Flat split
One split applies to all items, all consignors, all the time. It's easy to explain, easy to manage, and sets clear expectations.
Tiered split by item value
Some stores offer consignors a better percentage on higher-value items called a Tiered Split. A store might pay 50% on items under $50, and 60% on items priced above $50.
Category-based split
Stores that carry multiple product categories — say, clothing and furniture — sometimes apply different splits by category. Furniture might get a 50/50 split to account for the extra floor space and handling while clothing runs at 60/40. This makes sense when different categories have meaningfully different cost profiles.
Brand-based split
Some luxury and high-end stores offer more generous splits for high-demand brands like Chanel, Louis Vuitton, and Hermès. These brands often have strong resale demand and can sell at high prices which means even a smaller store cut adds up fast. And consignors who feel fairly compensated on their items will keep coming back with more.
Negotiated or VIP splits
Some stores offer individual consignors a better deal based on volume, loyalty, or the caliber of what they bring in. This is more common in higher-end or specialty shops. It works, but it requires careful management — if consignors ever compare notes and discover inconsistent terms, you'll have a trust problem. If you go this route, keep it systematic rather than ad hoc.
Store credit bonus
A common variation: offer consignors a slightly higher effective payout if they take their earnings as store credit instead of cash. A 60/40 cash split might become 65/35 if the consignor spends the balance in-store. This costs the store less than the percentage difference suggests (since that credit is spent on merchandise with its own margin) and encourages repeat engagement.
How to set your consignor split
The industry benchmark for clothing and general consignment is a 60/40 split favoring the consignor. A 50/50 split is also common, particularly at higher-volume or value-focused stores where lower price points compress margins. For luxury or high-value items, consignors often expect — and can negotiate — a larger share.
That benchmark is a useful starting point, not a mandate. Here's how to think through your own number:
1. Know your costs. Add up your fixed overhead — rent, utilities, staff, software, supplies — and divide by the number of items you sell in a typical month. That gives you a rough cost-per-item floor. Make sure your split clears that floor with room left over.
2. Check your market. What are other consignment stores in your area offering? If competitors are running 60/40 and you offer 40/60, you'll need a compelling reason why consignors should choose you. If you're the only game in town, you have more flexibility.
3. Consider your price point. The higher your average selling price, the more room there is to be generous. A 60/40 split on a $200 item leaves the store $80. A 60/40 split on a $12 item leaves the store $4.80 — which may not even cover the cost of processing it. Lower-priced inventory often justifies a tighter split or supplemental fees.
4. Factor in any fees you charge. If you charge a listing fee, item fee, or deduct credit card processing before splitting, those affect the consignor's effective take. Be honest with yourself (and your consignors) about what the full picture looks like.
5. Put it in writing. Your split isn't real until it's in your consignor agreement, signed at intake. Don't assume consignors will remember the number you mentioned at drop-off six weeks ago.
Common consignor split mistakes
Setting the split based on convention alone. "Everyone does 60/40" isn't a business analysis. Run your numbers. A split that doesn't cover your costs is a slow leak in your business model.
Applying the split inconsistently. If your system isn't calculating splits automatically, human error creeps in. Miscalculated payouts — especially underpayments — damage consignor trust fast and are hard to recover from.
Not specifying what the split applies to. Does the split apply before or after credit card fees are deducted? Before or after a discount? If your agreement doesn't say, you'll have this argument with a consignor eventually.
Changing the split without notice. If you need to adjust your split structure, give consignors advance notice and honor existing agreements through their current consignment period. Changing terms retroactively — even with good intentions — reads as a breach of trust.
Assuming one split fits all categories. If you sell both a $10 blouse and a $900 vintage coat, the same flat split may be serving one category well and the other poorly. It's worth revisiting as your inventory mix evolves.