Starting a Consignment Store Part 6: Inventory Management and Pricing

Inventory Management and Pricing

Effective inventory intake and pricing are crucial for a healthy consignment business.

Start by establishing clear processes for recording each new item: enter it into your tracking system with details like brand, size, and an initial price. Tag items during intake by condition, category, or season so you can filter and move them easily on the floor. We advise adding tags at entry (e.g. “Condition: new”) rather than retroactively, since tagging early is far more efficient. Tags let you quickly sort and analyze inventory later – you can filter by tag in your POS to see all “new” items, seasonal goods, or clearance stock. This upfront organization helps ensure each item is correctly priced, shelved, and tracked through its lifecycle.

Consignment software makes inventory intake and tracking simple. As shown above, each item record can include fields like size, tag price, and custom tags. This lets staff view all items in a grid and filter by attributes. Using software or even a shared spreadsheet, note down every item’s details immediately upon arrival. Bulk-edit features (e.g. adding a “Holiday 2025” tag to many items at once) speed up labeling and pricing when you receive seasonal inventory. A solid inventory system (from a spreadsheet to a consignment POS) ensures you know exactly what’s in stock, what’s sold, and what’s due to be returned.

Pricing Strategies

Consignment stores generally use two methods: tiered pricing and market-based pricing.

Tiered pricing groups brands and item types into levels with set price ranges (for example, mid-tier brands at 30–40% of retail, discount brands lower, and luxury brands higher). It’s fast, consistent, and easy for staff to apply, though you’ll want to adjust tiers over time as trends shift.

Market-based pricing sets values by researching each item individually, especially luxury or rare goods. It’s slower but ensures you capture maximum resale value for high-end pieces.

Most stores use a hybrid approach: tiered pricing for everyday items and market-based pricing for designer or unusual inventory. This balance allows you to process volume quickly without leaving money on the table.

Tips: include your commission in every price, track sell-through by tier, and review your guide every 6–12 months to stay current.

For a more in-depth look at these pricing methods, check out a fuller exploration of tiered pricing and market-based pricing in this blog.

Markdown Cycles and Promotions

Seasonal sales and markdown events can help move inventory. For example, stores often put seasonal markdowns on display (see sign for a spring consignment sale). A planned markdown cycle keeps items fresh: hold them at full price initially, then apply bigger discounts over time. A typical strategy is 0–30 days at full price, 31–60 days at ~20% off, 61–90 days at ~40% off, and clearance pricing after that. This approach rewards early shoppers and helps clear older stock later on. In addition to percentage discounts, consider “fill-a-bag” or bulk pricing events for slow items. Clearly tag sale items and promote these deals with signs or online ads to ensure customers notice them and help you rotate stock quickly.

Tracking and Organization

Keep your inventory organized by category and location. Use a structured layout (e.g. grouping by men’s, women’s, season) and mirror that in your storage. For instance, back-of-house organization should match the sales floor sections for quick restocking. Within your system, organize items by status (pre-intake, on-floor, clearance, etc.) so every piece is handled properly at each stage.

• Use a tracking system: Whether a spreadsheet or consignment POS, make sure you can see what’s in stock, sold, or due to be returned.

• Stay organized: Attach clear price tags and sort items by type or season on the floor. A tidy layout makes it easy to find things and spot overstock.

• Audit regularly: Perform periodic inventory checks. This reveals slow sellers or discrepancies so you can apply markdowns or remove items in time. Regular reviews help you adjust buying and stocking to match customer demand.

By combining disciplined intake, consistent pricing rules, and careful tracking, your consignment store will run smoothly, maximize sell-through, and keep consignors happy.

If you want to learn how to keep inventory organized and analyze sales, see how to do it using tags.

How ConsignCloud Supports Stores with Location, Layout, and Online Presence

ConsignCloud enhances both the look and the efficiency of your store. With customizable price tags and labels, you can create a professional, branded appearance that matches your store’s layout and merchandising strategy. You can also track and organize inventory with powerful filtering and tagging features, so you can rotate stock and set up discounts with ease. On the digital side, ConsignCloud integrates with Shopify, keeping your online presence just as organized as your physical store. That means customers browsing your website see accurate inventory in real time, and your store staff don’t need to double-enter product details.

Part 7: explore marketing and customer engagement strategies for resale stores — releasing soon!