Consignment Fees and How to Use Them
July 12, 2021
There’s plenty of ways to make money from your consignment fees or even have certain features pay for themselves. There’s a lot of opportunities to make money from your features. You just have to know the consignment fees and how to use them.
Consignor Access Fee
Consignor Access allows consignors to have online access to their accounts. You decide the information they see. Consignor Access will help you have easy communication with your consignors and keep them updated. Since this is something extra you offer for the convenience of your consignors, you should charge them a fee. Your consignors who had at least one item would be charged on the last day of the month. It’s easy to make a good amount of extra money just by charging each consignor $1.
Check Fee
If you are paying your consignors with checks, you really should be charging them a fee. It’s a great opportunity to charge a fee since checks aren’t free. This wouldn’t make you more money, but it would cover the cost of your checks, which can add up really quickly. The consignor will be charged at the time of sending the payout check.
SimplePay Fee
If you’re already charging for checks, you might as well charge for ACH payouts or SimplePay. You are already paying for this feature, and if you charge your consignors, instead of eating the cost, use this as another opportunity to use consignment fees.
Credit Card Processing Fee
A credit card processing fee only makes sense, considering you are already paying a fee for that. Reimburse your business by adding a certain percentage to earn for every credit card transaction.
Buyer’s Fee or Item Fee
A buyer’s fee can be either a fixed dollar amount or a percentage. The marked price would show the total amount, including the buyer’s fee, but the system will say the price excluding the buyer’s fee. The consignor would then get their part which depends on what the system says. For example, if an item is priced at $10 and you charge a $1 buyer’s fee, the price tag will say $11, but you keep the extra dollar with the store split when they check out.
An item fee works similarly. The item fee is taken out of the consignor’s split after an item sells. If you price an item at $10 and the split is 50/50, and you have a $1 item fee, the store receives $5 the consignor gets $5 minus the $1 item fee.
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