Answers to Common Beginner Questions

Top Beginner FAQs for Consignment Shops and Resale Stores

How do I set commission/split for consignors?: Typical splits range from 40/60 (shop/consignor) to 60/40, depending on size, location, and inventory. Check local competitors and set a split that covers your costs and attracts consignors.
How do I collect and remit sales tax?: Apply for a sales tax permit with your state revenue department. Collect tax on all eligible sales, keep records, and remit monthly or quarterly as required.
How much start-up inventory do I need?: Aim for enough variety in each key category (clothing, toys, home...) so shoppers see well-stocked, full displays. Recruit new consignors before and after opening for fresh daily arrivals.
Do I need a business license or permits?: Yes, most cities/states require a business license and sales tax registration. You may also need a resale permit or occupancy/fire approvals; check with your local SBDC or city business office.
What’s the easiest system for tracking sales and payouts?: Shop software like BCSS logs every item, sale, and payout; spreadsheets also work for very small shops. Manual logs are okay for one-person operations but scale poorly.
Should I accept returns?: Many consignment shops have a no-returns policy due to item uniqueness, but some accept returns within 3–7 days for store credit. Post clear policies at checkout and in agreements.
What insurance do I need?: Business liability, property, and sometimes consignment-specific coverage. Shop insurance through local agents, retail associations, or industry groups.
How much should I pay myself?: After covering shop expenses and consignor payouts, set aside an “owner draw” for regular pay. In the first year, plan for a modest (or reinvested) amount as you grow.
How do I find new consignors?: Promote intake drives, partner with local groups, ask for referrals, and list intake details on your website/socials. New consignors are the lifeblood of a fresh shop!
Do I need special payroll/tax help if I hire?: Once you hire employees, even part-time, you must handle payroll and withholdings. Consult an accountant or use payroll software/payroll service to stay compliant.

FAQ: Additional Beginner Shop Owner Questions

Is it normal to feel overwhelmed at first?

Yes! Every new owner hits a learning curve. Use checklists, take regular breaks, and reach out to business groups for support.

When should I invest in software versus free spreadsheets?

Spreadsheets are fine to launch, but upgrade when intake/sales hit 50+ items/week or consignor records get hard to manage. Software saves hours and reduces errors as you grow.

How do I advertise with no budget?

Start with free online listings, local flyers, social media, and word of mouth. Use every touchpoint (receipts, bags, social posts) to mention your shop.

What do I do if I make a big mistake?

Fix it quickly, apologize if needed, and learn. All owners make mistakes growing from them is what counts!

Quick Start Checklist

Set clear policies now update when needed
Track every intake, sale, and payout from day one
Get help when stuck don’t go it alone
Revisit this FAQ as your shop grows!

Next Steps

Review the consignment glossary to master shop terminology
Browse our support & professional help guide
Book a call or demo with BCSS for tailored software help at any growth stage

Best Consignment Shop Software – Trusted Since 2002

From your first sale to your hundredth payout, Best Consignment Shop Software supports every step: intake, payouts, tax reports, and digital organization. One-time payment, lifetime use, and no forced support prepay. Join thousands of new and seasoned shop owners since 2002 BCSS is beginner-friendly and backed by real experts.

Book your free demo or get starter checklists now