What 50/50, 60/40, 70/30 actually mean
Quick definitions so we’re talking about the same thing: in this post, the split is written as consignor/seller. So 60/40 means the consignor (the person who owns the item) gets 60% of the selling price, and you keep 40% for your work.
But the percentage alone doesn’t decide what’s fair. The real split lives “after the math.” You have marketplace fees, payment fees, shipping, supplies, cleaning, photography, storage, returns, and your time. Who pays what? Is the split taken before or after fees? If you don’t spell that out, a “70/30” can secretly turn into “80/20” or “50/50” depending on the item and venue.
One more ground rule: set splits per category or price tier, not emotions. Your friend’s designer coat doesn’t get a better rate because you like them. Use written terms, the same way you’d price a sale at your store. Consistency keeps relationships intact.
Which split is better? Use value, work, and risk to decide
There isn’t a single “best” consignment split. There’s the split that matches the reality of the item and the work you’ll do. Use these quick lenses:
Value: Higher sale price items can justify higher consignor shares.
Work: Cleaning, repairs, long descriptions, or slow categories demand more of your time, which justifies a bigger cut for you.
Risk: Fragile shipping, high return rates, or authenticity issues? You’re taking risk—price it in.
Speed: Fast-moving, easy-to-list goods can support a richer payout to the consignor.
Volume: Reliable consignors who bring steady, curated inventory can earn better splits across the board.
When 50/50 makes sense
Use 50/50 for low-to-mid value items that take real work, or anything with higher risk. Think everyday mall-brand coats, small home goods, or bulky furniture you’ll store and maybe deliver.
Example: That $40 thrifted coat. Say platform + payment fees are $6. Shipping is $8 (buyer-paid, but you still have to handle it), and you spend 20–30 minutes on intake, photos, listing, and messages. On a 60/40 to the consignor, your share is $16 before supplies and time. That’s tight. At 50/50, you keep $20—still not a gold mine, but more realistic once you factor your time and materials.
Use 50/50 when:
List price under ~$50–$60
Bulky pieces with storage or local delivery involved
Risk of returns or “not as described” disputes is higher
You’re providing extra services: steaming, stain removal, minor repairs
When 60/40 is the sweet spot
60/40 (consignor 60) fits most mid-value items that are clean, authentic, and easy to move. Good sneakers, solid denim, small furniture with quick pickup, quality cookware, sought-after vintage.
Example: $150 sneakers. Marketplace fee: $18. Payment fee: $2.50. Shipping label: $12. Supplies: $3. Net proceeds after direct costs ≈ $114.50. On a 60/40, the consignor gets $69; you keep $45.50 for your time, skill, and risk. This is healthy for a category that turns fast.
Use 60/40 when:
List price ~$60–$200
Prep is light (quick clean, standard photos)
Category demand is steady (thrift staples with comps you trust)
The consignor brings regular volume so you batch workflow
When to go 70/30 (or use a tiered model)
70/30 (consignor 70) shines for higher-value, in-demand pieces where your work and risk are reasonable. Think authenticated designer goods with clean provenance, mint-condition pro audio gear, or exceptional vintage furniture with local pickup and a waiting list.
Example: $800 authenticated designer bag. Fees and payment total $96. Maybe a $20 authentication check and $15 in packing. Net ≈ $669. On 70/30, consignor gets $469; you keep $200. That’s fair because your hourly time isn’t crushing, and the item likely sells fast if priced right.
Not every $800 item is equal. If it needs deep cleaning, complex authentication, or heavy freight, you can stick with 60/40 or charge a separate service fee. For truly premium pieces ($1,000+), many pros go to a written tier or even 80/20 to the consignor if the item is pristine and demand is hot.
Simple tier many shops use (tweak to your costs):
Under $50: 50/50
$50–$199: 60/40
$200–$999: 70/30
$1,000+: Custom (often 70/30 or 80/20 with service fees spelled out)
Fees, shipping, and returns: set the rules before you quote a split
The ugliest consignment fights come from fuzzy math. Lock these down in writing:
Split is applied to net proceeds, not list price. Net = sale price minus marketplace + payment fees, shipping label, and agreed prep costs.
Who pays shipping? If buyer pays shipping, great. If you subsidize shipping to compete, call it out.
Returns and chargebacks. If the item comes back, who eats the cost? Many shops reverse the payout or deduct from future payouts.
Markdowns and offers. Set a floor (e.g., “We can discount up to 20% without asking; below that we’ll text you”).
Timeline. Unsold after X days? You reduce price, return, donate, or buy out at a fixed rate. Put it in writing.
Checklist: lock your consignment split and policy in 30 minutes
List your true costs by category: average fees, time per item, shipping, storage, supplies.
Pick a default split per price tier (e.g., 50/50 under $50; 60/40 for $50–$199; 70/30 for $200+).
Decide what counts toward “net”: fees, shipping label, authentication, cleaning. Write it plain.
Set markdown rules and a hard floor per item or category.
Create a one-page agreement. Add your payout schedule (e.g., monthly) and return/donation policy.
Build an intake form that captures seller info, item list, expected price range, service fees, and signatures.
Assign each item a SKU and track it from intake to payout so every dollar has a home.
Test the system with 5 items from a friendly consignor. Fix any confusion before scaling.
Non-obvious mistakes that kill profit
Quoting a split before seeing the item. Condition and comps change everything. Say “estimated split pending intake.”
Taking your cut on gross. Always define net proceeds and calculate from there.
Forgetting your time threshold. If you can’t net $25–$40 per hour on average after everything, your split or intake standards need work.
No discount floor. You approve a juicy offer to move inventory, then realize it pushed the payout below your minimum.
Blending consigned with owned inventory without clear SKUs. That’s how payouts get missed and trust evaporates.
Accepting “project” items without a service fee. Heavy cleaning, repairs, or authentication deserves a separate line item.
Not planning for returns. One INAD on a high-value item can erase a month of profit if your agreement is vague.
How a pro runs consignment splits with ResaleOS
Once you’ve decided your tiers and rules, put them on rails. In ResaleOS you can run the whole consignment workflow without spreadsheets and text threads.
Set a default split per consignor and override it per item or category when needed.
Capture intake on your phone: photos, SKUs, notes, expected price, and signature.
Auto-generate titles and descriptions from photos so intake moves fast.
Track net proceeds per sale after marketplace fees and shipping so payouts are accurate.
Batch-generate payout statements by consignor and export for payment.
If you want clean math and fewer “what’s my payout?” texts, put your next intake through a consignment workflow you can actually trust. Your future self will thank you.
Frequently asked questions
Is 50/50 fair for consignment?
Yes, for low-value or high-work items. If selling, packing, and support take real time, 50/50 keeps you from working for pennies. For mid to high value goods that move easily, 60/40 or 70/30 is typically more attractive to consignors.
Should the consignment split be before or after fees?
After fees—always. Calculate the split from net proceeds: sale price minus marketplace and payment fees, shipping label, and any agreed service costs (cleaning, authentication). This keeps payouts consistent and prevents surprise shortfalls.
What split should I use for luxury items?
For authenticated, high-demand luxury that sells fast, 70/30 to the consignor is common. If you’re handling complex authentication, returns risk, or white-glove shipping, either hold at 60/40 or charge a separate service fee and still use 70/30.
How do I handle returns on consigned items?
Put it in your agreement: if a return happens within the platform’s window, reverse the payout or deduct from the next payout. Spell out who covers shipping both ways for INAD vs buyer’s remorse. Clarity here prevents hard feelings later.
Should I use the same split for every client?
No. Keep your tiers consistent, but adjust based on volume, category, and prep work. A consignor who brings 50 clean, well-described items monthly can earn a better rate than someone who drops off three mystery boxes twice a year. Document the exception so you can repeat it, not guess it.
