Consignment is one of the lowest-risk ways to start selling. You don’t buy stock upfront — you sell on behalf of others and take a commission. Here’s how to make it work in Australia.
Why Consignment Works
The traditional retail model requires significant capital: you buy inventory, hope it sells, and absorb losses when it doesn’t. Consignment flips this. You only pay consignors when items sell, meaning zero inventory risk.
For Australian resellers, this is especially powerful because:
- Low barrier to entry — No need to tie up thousands in stock
- Diverse inventory — Consignors bring unique items you’d never source yourself
- Sustainable model — Extends the life of pre-owned goods, appealing to eco-conscious buyers
- Community built-in — Consignors become advocates for your store
Setting Your Commission Rates
The standard consignment split in Australia ranges from 15-30% commission for the store. Here’s a typical tiered structure:
| Sale Price | Store Commission | Consignor Share |
|---|---|---|
| $0 - $2,000 | 20% | 80% |
| $2,001 - $5,000 | 15% | 85% |
| $5,001+ | 10% | 90% |
Higher-value items earn lower commission rates because the absolute dollar amount is still attractive, and it incentivises consignors to bring premium stock.
Pricing Strategy
Price too high and items sit. Price too low and you leave money on the table. Here’s our approach:
- Research comparable sold prices — Check eBay sold listings, Facebook Marketplace, and specialty forums
- Price at 85-90% of market — Consignment buyers expect a discount vs. retail
- Implement time-based markdowns — Reduce price 10% after 30 days, 20% after 60 days, 30% after 90 days
- Automate repricing — Tools like TurnGoods can track days-to-sell and suggest price adjustments automatically
Managing Consignor Relationships
Your consignors are your supply chain. Treat them well:
- Transparent tracking — Give consignors a portal to see their items, prices, and sale status in real time
- Fast communication — Notify them immediately when items sell or prices change
- Reliable payouts — Pay on schedule, every time. Late payouts lose consignors fast
- Fair rejection policy — Not everything is suitable for consignment. Be clear about what you accept and why
Technology Stack
Running a consignment store on spreadsheets works for the first 20 items. After that, you need software that handles:
- Inventory tracking with photos and descriptions
- Consignor management and communication
- Automated pricing suggestions based on market data
- Commission calculations and payout tracking
- Sales analytics and reporting
This is exactly why we built TurnGoods — consignment intelligence, not just plumbing.
Next Steps
Ready to modernise your consignment operation? Book a demo to see TurnGoods in action, or join the waitlist to get early access.
TurnGoods — Stop Listing. Start Selling.