How to Handle Your First Consignor Agreement

What is a Consignor Agreement? Why Does it Matter?

Your consignor agreement is a basic contract between you (the shop) and the person leaving items to sell. It outlines who gets paid what, how long you’ll display the goods, what happens to unsold items, and protects both sides from confusion or conflict later. It’s a must even for small or one-person resale shops.

Must-Include Sections for Your First Agreement

• Names & Contact Info: Both shop and consignor (address, phone, email for follow-up or payout).
• Consignment Period: How long items stay in store (e.g., 60 days). Start and end dates clear and visible.
• Commission/Split: Who gets what percent after sale (e.g., “You receive 50% of selling price, shop keeps 50%”).
• Markdown Policy: When and how items are discounted (e.g., “After 30 days, 20% off; after 60 days, remaining items may be donated or picked up”).
• Payout Terms: When and how you pay the consignor (cash, check, store credit, or PayPal; after sale, monthly, or end of consignment period).
• Unsold Items: How long consignor has to retrieve unsold goods; what happens if not picked up (“Items not retrieved within 10 days after consignment period become property of store and may be donated”).
• Condition of Items: State all must be clean, gently used, free of smoke/pet odor, etc.
• Signatures & Date: Both parties sign and date; shop keeps a copy and gives one to consignor.

Sample Simple Agreement Language

“Consignor will receive 50% of each sold item’s price, paid via check within 30 days of sale. Items will be displayed for 60 days. Unsold goods must be picked up within 10 days after consignment period or they become property of store. Items may be marked down at shop’s discretion. All sales are final.”

Tips for an Easy, Positive Signing Process

• Walk through the agreement out loud with each new consignor encourage questions!
• Be honest about condition standards and pricing; politely return anything you won’t accept at intake.
• Discuss what will happen if items don’t sell (returns, donations, markdowns) to set expectations.
• Give each consignor a signed copy with a clear list/description of accepted items (or attach a printed intake report).
• Keep all agreements on file for at least 3 years (digital scan is fine).

Common Agreement Pitfalls for Beginners (and How to Avoid Them)

• Forgetting to address what happens to unsold items leads to confusion or conflict.
• Not stating exact payout timing consignors may expect faster payment if not clarified.
• Using only verbal agreements. Always get a signature (paper or electronic) before accepting inventory!
• Being “too flexible” changing terms for different people without documenting it carefully.

FAQ: First Consignor Agreement Basics

First Agreement Checklist

• Clear, signed agreement for every consignor
• Start/end dates and payout schedule visible
• Status for unsold items (“pick up or donate by X date”)
• Labels/tags tracing each item to the right consignor
• Easy-access file or folder for all agreements

Next Steps and Resources

• Download a free agreement template from your local small business center or trusted software (like BCSS)
• See Creating Simple Store Policies for more on fine-tuning your terms
• Review and update your agreement annually as you learn!

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