How to prevent consignment payout disputes before they start
Most consignor disputes come from vague terms and missing records. What to agree at intake, how to handle fees and returns, and what every statement should show.
A consignor messages you: "My bag sold for $300, so why did I only get $195?"
Your number may be completely correct. But if you need 20 minutes and three spreadsheets to prove it, you have a dispute on your hands, and the consignor has started to wonder what else might be off.
Consignment runs on trust, and the trust rests on small records. Nearly every dispute comes down to something that was never agreed or never written down.
The fee question causes the most arguments
"25% commission" sounds clear until a sale carries $30 in selling fees. Here is one $300 sale settled three ways, all of them perfectly common.
Illustrative: 25% commission and $30 in selling fees on a $300 sale.
| How the terms are written | Commission | Fees paid | Consignor receives |
|---|---|---|---|
| Commission on sale price, shop absorbs fees | $75.00 | $30.00 | $225.00 |
| Fees deducted first, then commission on the rest | $67.50 | $30.00 | $202.50 |
| Commission on sale price, consignor pays fees | $75.00 | $30.00 | $195.00 |
That is a $30 swing on a single item, using illustrative numbers. None of these is wrong, as long as the consignor agreed to it. Put a worked example like this in your own agreement, because it is far harder to misread than a sentence.
Agree these seven things at intake
State the percentage, and what it is calculated on.
Say who pays channel fees, card fees and shipping, using a worked example.
Record the lowest price you may accept without asking the consignor.
Say whether, when and how far you can reduce the price as the item ages.
Set how long you will hold the item, and what happens at the end: return, renew, or donate.
Say when a sale becomes payable. Many shops wait until the return window has closed.
Record the condition with photos and notes while the consignor is still in the room.
Plan for the return after the payout
This is the case most shops have no answer for. An item sells, you pay the consignor, and the buyer returns it a week later. You now hold an item you do not own and have paid out money you never earned.
There are two clean ways to handle it:
- Day 0Item sells
- Return windowBuyer can still return it
- Window closesSale becomes payable
- Next payout runConsignor is paid
- Hold the payout until the return window closes. This is simple and makes a good default.
- Pay on sale and offset later, taking the amount from the consignor's next payout. This suits high-volume consignors who are comfortable with it.
Pick one, write it into the agreement and apply it the same way for everyone.
What a good statement shows
A consignor should be able to check a statement without calling you. Each line needs the item, its sale date, sale price, commission, any fees charged to them, and the net amount. The statement should also list unsold items and how long they have been with you, because a consignor's second most common question is "where's my stuff?"
Keep the history behind each figure too. When someone questions a payout, you want to show the price changes, the sale and the calculation in one place.
How StackKnack helps
StackKnack Console keeps the item, its owner and the payout obligation in one connected record, from intake through settlement.
- Record the owner, condition and terms when the item arrives.
- Track the exact unit until it sells, with its location and time in stock.
- Connect the sale to the consignor's balance, so you can see what you owe and to whom.
- Pay consignors without a spreadsheet, and keep an activity trail behind each number.
When that message about the $300 bag arrives, the answer sits on one record, ready to send.
Running consignment on spreadsheets today? Bring us one item's journey from intake to payout, and we will show how Console records it.