The commission split is the single number consignors care about most — and getting it wrong in either direction has a cost. Set it too low and you'll struggle to attract inventory; set it too high and your margins won't cover overhead. Here's how shops typically approach it.
The flat-split model
Most new consignment shops start with a flat split, commonly somewhere in the 40/60 to 50/50 range between shop and consignor, though the exact number varies widely by category, region, and local competition. A flat split is easy to explain and easy to bill, which makes it the right starting point if you're not sure yet.
Sliding scales based on price or tenure
Some shops shift the split as an item's price rises, giving consignors a larger share on higher-ticket pieces since those are harder to source. Others slide the split based on how long a consignor has been with the shop, rewarding loyalty with a better rate after a set number of consignment cycles.
Category-based splits
Shops that carry a mix of categories — say, furniture alongside apparel — often set different splits per category, since sourcing difficulty and price points differ so much between them. A category split needs software that can apply the correct percentage automatically per item, rather than per consignor, since one consignor might bring in items across several categories.
What to put in the consignor agreement
Whatever split you choose, write it down. A signed consignor agreement should spell out the percentage, how long an item stays on the floor before it's marked down or returned, and how payouts are scheduled. This avoids the single most common source of consignor disputes: a disagreement about what was promised.
Automating the math
Once you're running more than a handful of consignors, calculating splits by hand becomes the bottleneck. Consignment-specific software can apply the correct split automatically per item or per consignor and roll it straight into a payout run, which is the difference between a monthly payout taking an afternoon or taking five minutes. See how Consign Sprocket's payout tools handle recurring fee schedules and mixed payout methods automatically.