How to Write a Consignor Agreement for 2026
Samuel Dickison
Intro
Robert Frost, the famous American poet, wrote, “Good fences make good neighbors.” We’d echo that: good consignor agreements make good consignors. And if the word “agreement” makes you think of lawyers, the IRS, and reams of 8 point font, fear not. The reality is that a good agreement is simple, easy to write, and can usually fit on one sheet of paper. Below, we’ll walk through exactly how to create an agreement for your store that improves your inventory pipeline, reduces friction, and keeps happy consignors coming back for more.
Essentials for Any Agreement
Think of your consignor agreement as the rules to a game; everyone has more fun when they know what to do. (It’s tempting to quote Robert Frost again here—he once compared writing free verse to playing tennis with the net down. But we won’t.) Here’s what we recommend your agreement include at a bare minimum.
Consignment Split
Spell out exactly what your split is with consignors, and if there are any variations (for particular categories, conditions, etc.). We recommend having a standard baseline split and keeping variations as simple as possible (we have more thoughts on pricing here). Standard splits range from 60 (store)/40 (consignor) to 50/50. Be sure to spell out whether there are any fees that affect the split, i.e. a cleaning fee, surcharge, or shipping cost that may be taken from the consignor’s portion. We’ll go into more detail on fees later on, but the overarching principle is to be upfront. No one is happy paying a fee—even a small one—that they didn’t anticipate.
Consignment Period
Be clear about how long your store holds on to items. Ideally, new inventory flies off your shelf. But you certainly don’t want to become a free attic for unwanted goods. Most stores have a 30-60 day window in which they’ll display something before they return it to the consignor. Spell out exactly how long consignors have to retrieve their goods once that window closes (a ‘grace period’) and their items become the store’s property.
The simplest solution is often to donate unsold items to a local thrift store or nonprofit. But beware of false hope. It can be all too easy to hang onto old inventory once something is “yours.” The reality is that if something hasn’t sold in the first 60 days it’s unlikely to sell in the next 60. Not only will it continue to take up otherwise profitable space, but you run the risk of discouraging shoppers if they continually see the same thing on your shelf.
Pricing
Dictate who sets the price of items. Most consignors will assume this is the store (as will most stores), but it’s worth setting the expectation. Reassure consignors that you too want their goods to sell, that you keep a close eye on the market, and that you’re out to make a profit for both parties.
Payout Terms
It’s always good to explain clearly how and when your consignors can expect to be paid. We recommend including:
Timing: how frequently payouts are issued or if they are only on request.
Method: what the default is, and what the other options are (ACH, cash, check, store credit, etc.). If there are fees associated with any, list them. Many stores incentivize payment via store credit, either increasing the amount or giving bonuses for credit spent in-store.
Minimum payout thresholds: if there is a minimum balance before a consignor is paid out.
Expiration: what happens to an unclaimed balance after a certain period.
Very Helpful Additions
If you’ve covered the bases above, chances are good that you have a solid agreement in place that will cover 99% of all your needs. Below are a few less common areas that are also worth considering when writing your agreement.
Marketing Rights
Let consignors know that you reserve the right to use images and descriptions of their items in marketing and promotional material. You never know how possessive someone might be at an odd time.
Liability and Damage
It’s always good to protect yourself from other people’s careless behavior. It could be as innocent as a busy mom flinging coffee all over a dress, but stuff happens. Consider adding a clause to your agreement that waives your store’s liability for damaged or stolen items. Alternatively, some stores will commit to paying out the consignor portion of a stolen item which can be a great way to establish trust and good will for what’s (hopefully) a very unlikely scenario. Realistically, most consignors who bring their goods to you already trust you on some level. However you word this clause, do your best to be fair and reasonable.
Discount Schedule
Many stores will discount items after a certain period before removing them outright. Let consignors know when that discount is applied (in case they’d like to retrieve their items first), how much it will be, and whether that affects the split.
Fees
The best place to flag fees is where they would normally apply (i.e. as part of the consignment split), but given the varied nature of fees it may be worth giving them their own section. Common fees could include:
A buyer’s fee: a fee applied before a split often as a way for the store to cover credit card processing.
A processing fee: a fee taken from the consignor’s portion if a credit card was used for the purchase.
A cleaning fee: for, well, cleaning (although many stores only accept items that are already clean).
A shipping charge: for items sold online, some stores may share the shipping cost with consignors, or pass it on entirely.
A payout fee: consignors who receive payouts via ACH will often be charged a small fee.
Conclusion (and a Downloadable Template!)
Ask any consignment store owner who’s been around the block and they’ll likely tell you they’ve never had to fight over their agreement. In fact, that’s largely the point of having one: laying out your policy on the front end heads off the vast majority of conflict. The very act of signing an agreement will actually increase your consignor’s trust and appreciation. You’re a professional! You have rules! And to speed you on your way, here’s a free template. Good luck out there, and as always, we’re happy to talk should you have any questions about setting up your shop.
