CONSIGNMENT 101

The Pros & Cons of Consignment

 Many creative business owners approach me and ask if I will stock their products. Often, the conversation starts with enthusiasm and optimism:
“It’s free stock!”
“Just take it for a week or two.”
“Try it out and see how it goes!”

There’s a common assumption that taking products on consignment is easy or risk-free for a shop owner. Some are genuinely surprised—and occasionally offended—when I explain that I don’t take any products on consignment and won’t consider it.

This decision isn’t made lightly, and it certainly isn’t personal. It’s rooted in experience, sustainability, and a deep respect for creative businesses.

What is consignment, really?

Consignment is the practice of loaning products to a store to sell on your behalf. No money changes hands upfront. If the items sell, the store keeps a percentage of the retail price and the creative is paid the remainder.  The key word here is if.   There is no guarantee that the work will sell. And when it does, the creative is only paid for the items that move. It’s entirely possible for a maker to hand over stock worth R3000 and receive only R100 at the end of the month.

The potential advantages of consignment

To be fair, consignment can offer benefits for both creatives and shop owners, particularly early on:

  • It can help you get your foot in the door with a potential stockist.
  • Your products are visible and accessible to new customers.
  • You only need to restock as items sell, creating smaller, incremental income.
  • There’s no upfront financial outlay for the shop, allowing them to “try before they buy”
  • For some businesses, in some situations, this can feel like a gentle starting point.

Why I choose not to take products on consignment

At The Ruby Orchard, I’ve made the conscious decision not to accept consignment stock. These are the reasons why:

  • If an item is stolen, who carries the loss?
  • If an item is damaged, shop-soiled, or mishandled while on display, who is responsible?
  • Tracking stock, sales, and payments can become confusing, leading to misunderstandings or disagreements.
  • With consignment, almost all the risk stays with the creative, while the shop owner carries very little. I want creative businesses to flourish, not flounder
  • Consignment stock can be unintentionally neglected—left on a shelf, tucked into a corner, or forgotten altogether.
  • When a shop owner has invested their own money into a product, they are motivated to sell it. They’ll style it, move it, photograph it, post it, talk about it, and actively promote it.
  • A store that can purchase stock upfront demonstrates healthy cash flow—and that tells you a lot about the stability of that business.
  • Shop owners cover rent, staff wages, card machine fees, electricity, internet, packaging, and many more expenses. A typical 15%–30% margin on consignment sales simply doesn’t cover these overheads.
  • Consignment can sometimes translate to: “I’m not quite sure this will sell.” When a shop owner truly believes in a product—and the person behind it—they commit time, money, and energy to making it succeed.

A shared goal

If you’re a creative business owner, these are just a few important points to consider when approaching potential stockists. Consignment isn’t inherently bad—but it’s not always fair, balanced, or sustainable.

At the end of the day, both the creative and the shop owner share the same goal:
to stock, support, and sell a beautiful product that everyone believes in.

When that belief is mutual, wonderful things can grow.