Running a Consignment Store on Shopify

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New Member
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Hello Shopify Community!

My girlfriend and I are building a consignment store on Shopify and we've been stumped on what is the best way to go about it. 

Our goal is to have it set up so that our consigners can sign in and check to see if they're products have sold, and if possible to have the sale split at the sale (we recognize this may not be feasible, but if it is let us know!). 

If it isn't possible to split the profits at the sale, what is the best route way to pay our consigners after the sale? 
We are thinking we'd pay our consigners on the fourth Friday of every month.

Can you make payments like this through Shopify or is it necessary to use an external app like Pay Pall?

Do you use Shopify and Shopify apps exclusively or is it necessary to have external apps to keep track of inventory and consigners information? 

What is the best way to make it easy for returning consigners? 

If you own a consignment store on Shopify, what are some challenges you've faced or things you wish you knew earlier?

Essentially our sites goal is to be run like an Art Gallery. We going to build a beautiful website where the artist can have us list multiple pieces of theirs and we handle shipping, listing and etc. for 90 days and they get 60% of the revenue at after the sale. 

Teach us! Share your experiences, let's start a discussion! 

Thank you,

Wolf & Kay

 

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Shopify Staff
Shopify Staff
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Hey Wolfgang,

Aria here, I'm on the Social Care team at Shopify. ?

The easiest way to set up a consignment store would be to use a marketplace app. We have the following options in our app store: 

Each one works differently but the potential is there to automatically pay 'commission' to your consigner's. You could also let them set up an account to make it easier for them when they return. 

I don't have any personal experience of running a consignment store but I would imagine one of the toughest parts of an online consignment store is dealing with shipping. Your consigner would be paying to ship the items to you and then you'd ship it to your customer, or possibly back to the consigner if it doesn't sell. Often the stores that work the best only accept local consigners to cut down on shipping costs. 

I would check directly with the app developers with regards to how the commission is paid out. I believe they use Paypal for that but they may not all be the same. 

I don't believe you'd need any external apps for any of this. If you do find there's an important function you can't find a solution for, please let us know so we can help you with that. 

I hope you get some merchants weighing in who have some experience in this department. Let me know how you get on. 

We're always here for support if you need it!

Aria
Social Care Guru
Shopify

Aria | Social Care @ Shopify
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Shopify Partner
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Hey Wolf & Kay!
 
I know it has been almost a year since you originally made this post, but I wanted to chime in incase you guys may still find it hard to make a consignment business model work on shopify!
 
When I was working on a sneaker consignment store I was also looking for some sort of software that would make it easier to manage consignment, exactly like the things you mentioned: 
  • splitting the sale,
  • knowing which consigners to pay and how much
  • a place consigners to be able to see if there products have sold
 
Over the past few months we have decided to build a product that does just that and more. 
 
We have talked to tons of consignment stores owners and are consignment business owners ourselves! 
 
With that knowledge we built a software that helps consignment businesses decrease cost with tools that saves them time, and increase revenue by making it easier to connect to more sales channels (like Shopify).
 
You can view our site here: www.frontflip.co
 
With our Shopify app you will have everything you need to make a consignment model work with Shopify.
 
Feel free to shoot me a email:
 
Always happy to chat!
 
Menan
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New Member
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We use ResaleGlobal.com (who is a Shopify partner) which manages our inventory, POS, consignor accounts and everything.  Its really easy and they have an in house team who sets it all up for you so you don't need to hire an outside consultant.  They are very helpful and customize the software to your needs.  So much better than other software for consignment because it doesn't have to be downloaded and you can access from anywhere in a browser.

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