15 things to include in a jewelry consignment agreement

jewelry consignment agreement

Things to consider before allowing a store to sell your jewelry on consignment


So you think you want to sell your resin jewelry?  There are lots of online and offline venues to consider.  At some point, you have probably thought about trying to get stores and boutiques to sell your resin jewelry.  Have you thought about all the details that go along with it?  I started selling my jewelry in stores in 2004 and here the details that I find are very important when consigning your jewelry for sale to a shop:



1.  Where is the jewelry going to be sold?  No, I’m not talking about a physical location in the store, but any and all locations in general.  Is this store in multiple locations?  Is this store also going to try to sell your jewelry in their online store?  Be specific about where your jewelry can be sold.

2.  How long will they try to sell your jewelry?  Is there a time limit after which you need to remove the unsold items?  Is there an expectation as to how often you need to rotate stock?  Do you have to make an appointment to take care of your jewelry inventory or can you stop in without notice?  What if you need to pick up inventory on short notice (say you’re going to a craft show)?  Make sure you are clear as to how you can get your jewelry if necessary.

3.  Who is going to be your point person?  Will you deal with an owner, assistant, stock clerk, etc.?  Limiting the number of people that you have to deal with will make sure you (hopefully!) get the same answer every time.

4.  Who is going to pay for jewelry going to and from the store?  If you live local to the establishment, the store is most likely going to expect that you deliver the merchandise yourself.  What if you don’t live locally?  Who is going to pay shipping costs?

5.  What about damages or theft?  (This is a biggie!)  Will the business pay you if one of your resin jewelry creations gets stolen or broken by a customer?  (As a side note — don’t expect to get anywhere near what the agreement says you will get paid when the piece sells.  Generally, businesses will only pay 50 percent or less of what the item is worth if it gets lost or stolen in a consignment situation.)

6.  Who prices your work?  More than likely, the business will let you set the price, but what happens if they want to put your work on sale?  Will you give them permission to do that as well?



7.  What is your commission going to be?  This is another important one to nail down.  You want to make sure it is clear what you will paid when your work sells.  Make sure there aren’t also any ‘hidden’ expenses that you are expected to cover, such as special events, customer mailings, etc.

8.  When are you going to get paid?  Will you get paid monthly?  Is there a minimum you have to sell before you can expect to receive the funds? Be prepared to not get paid until any return/exchange period have expired on your item.

9.  Are there any store policies that you will have to abide by?  e.g. maybe their return period is longer than what you normally offer or maybe they offer free sizings.

10. What happens if someone purchases one of your pieces of jewelry only to defraud the business of payment?  If someone pays with a stolen credit card, will you still get your money even if the business loses?

11. How will they represent your jewelry on social media channels?  Do you want them adding your work to their Facebook page, Pinterest boards or Twitter stream?  (This is a tricky one here — many pros and cons either way.)

12. What if you want to terminate the agreement?  How much notice do you have to give?  (Thirty days is what I agree to — from both parties)

IRS tax return


13. How will sales be reported to the IRS?  Just a warning, if you have more than $600 in sales from this establishment, they will most likely issue you a 1099 for your income from them.  Let this be a warning, if you haven’t set up your resin jewelry business (and all the licenses and fees that go with it), you should definitely do that before ever selling your jewelry.

14. Will the business be remitting the appropriate sales tax?  Take a moment to verify that the store will be submitting all the sales tax on purchases of your jewelry in your store.  It will impact what you include and how much you will pay on your sales tax returns.

15. How will the business furnish you records about your sales?  This is also a way to make sure you’re aware of their accounting methods and that the store can account for all your sales and returns.

The last bit of advice I can give you is to get it all in writing.  While things may seem good in the beginning, if they turn sour, you want to make sure you are clear as to what you’re entitled to and what recourse you may have.

And one more bit of advice, while these points are guidelines and have worked for me, please consult your attorney to see if there any laws and regulations in your area that you should be made aware of.

What else do you consider when selling your resin jewelry on consignment?

(and by the way, if you would like to copy this for your blog, you are welcome to do so, but you may only post the first five points without changes, then direct your readers with a hyperlink to this blog post to read the rest.)


Unpublished Blog Posts of Resin Obsession, LLC © 2013 Resin Obsession, LLC



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