Consignment: Definition, Formula & Why It Matters
Consignment is an arrangement where a supplier or owner places goods with you to sell while retaining ownership until they sell. You pay only for what sells and return the rest. The consignor carries the risk of unsold stock.
Example
A local player consigns an amp; you list it, and when it sells you keep an agreed cut and pay them the rest.
Why it matters for Reverb sellers
Consignment lets you expand selection without tying up your own capital, common for music shops. The trade-off is lower margin and the bookkeeping of tracking what you own versus what you hold.
How Verbstack helps
Verbstack tracks cost and payout per item so consignment and owned inventory stay clearly separated.
Track this on every order, automatically.
- ✓ Real fees, margins, and profit on every Reverb sale
- ✓ COGS and inventory tracked for you, no spreadsheet
- ✓ Full history and a live monthly P&L
Free forever to get started. No credit card required.
See this number on every order.
Connect your Reverb shop and Verbstack tracks your fees, margins, and profit automatically.
Get started freeFree forever to get started. No credit card required.