What is a store credit bonus?
A store credit bonus is an incentive that makes store credit worth more than its cash equivalent. Resale stores use it to incentivize sellers and consignors to take store credit over cash.
Store credit bonuses work a little differently depending on the store model. In consignment stores, the bonus typically applies when a consignor spends their balance at checkout. In buy-outright stores, the bonus applies when a seller is paid — they're offered more in store credit than they'd receive in cash.
Why should you use a store credit bonus?
In both store models, a store credit bonus keeps money in your store. A seller or consignor who walks out with cash is gone. One who chooses store credit will spend that money at your store.
For the store, it's a cost-effective incentive. The bonus is paid in goods rather than cash, which typically costs you less than its face value. You're not writing a bigger check — you're offering more purchasing power inside your own store.
Store credit bonus types
Consignment store credit bonus
In a consignment store, the bonus applies at checkout when a consignor pays with their store credit balance. Rather than debiting the full purchase amount from their account, the system debits less — essentially their store credit is worth more than face value. For example, around $91 in store credit could cover a $100 purchase.
Buy-outright store credit bonus
In a buy-outright store, the bonus applies at the point of purchase. When a store makes an offer on an item, the seller is presented with two numbers: a cash offer and a higher store credit offer. The seller chooses which they'd prefer. The spread between the two offers is the bonus.
A store might offer $20 cash or $30 in store credit for the same item. The seller usually only sees two clear options, but the percentage difference is a store-side calculation they don't need to see. Bonus rates vary widely by store (from 10-20% to even 100% or more) — what matters is that your store uses a consistent internal rate so your margins stay predictable.
How does a store credit bonus work in consignment?
Your consignment software should automatically calculate a consignment store credit bonus for you, but if you're curious about how the math works, read on!
When a consignor pays with their store credit balance, the bonus works by asking the question: what amount, when you add X% of itself, equals the purchase price? That amount is what gets debited from their account. The difference is the bonus.
Say a consignor uses their balance to pay for a $50 purchase, and your store has a 10% bonus configured. Rather than debiting the full $50, the system looks for the amount that — with 10% added on top — equals $50:
debited amount × 1.10 = $50
debited amount = $50 / 1.10 = $45.45
So only $45.45 is taken from their balance. The consignor was able to make a $50 purchase with only $45.45 worth of credit. The $4.55 difference is the bonus.
Why the effective rate is slightly less than the stated rate
You might notice that $4.55 is not exactly 10% of $50 (which would be $5.00). That's because the bonus is calculated as 10% of the debited amount ($45.45), not 10% of the purchase price ($50). Since the debited amount is always smaller than the purchase price, the effective bonus is always marginally less than the stated rate:
Bonus Rate | Effective Rate |
|---|---|
5% | 4.76% |
10% | 9.09% |
20% | 16.67% |
At typical bonus rates the gap is small. It's not misleading to tell consignors you offer a 10% store credit bonus — that's the rate you've configured and it's a fair description. But it's worth understanding when you're deciding what rate to set and how to talk about it.
Store credit bonus best practices
Use a consistent internal rate. Whether you're running a consignment or buy-outright store, your bonus should follow a predictable percentage — not gut feel at the counter. Consistency protects your margins and makes the incentive easier to explain.
Pick a rate that's worth noticing. A 5% bonus is technically an incentive but may not change behavior. Something in the 10–20% range tends to feel meaningful. If sellers aren't choosing credit over cash, the rate may not be compelling enough.
Explain it in plain terms. In consignment, explaining "Your store credit is worth more than cash here — $90.91 covers a $100 purchase" lands better than quoting a percentage. In a buy-outright store, showing two clear numbers ("$20 cash or $30 in store credit") is usually all the explanation a seller needs.