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Free consignment agreement template (Word)

Reviewed by Clausery editors · · 3 min read

An agreement between a consignor (owner of goods) and a consignee (shop/gallery/retailer) allowing the consignee to display and sell the consignor goods in exchange for a commission, with unsold goods returned after a set period.

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A consignment agreement lets you place your goods (art, clothing, crafts, antiques, second-hand goods) in a shop or gallery to sell without transferring ownership. The shop earns a commission when items sell; unsold items are returned to you after an agreed period.

It covers pricing, commission split, discount rules, duration, payment timing, insurance for loss/damage, and who is responsible for stolen or damaged goods.

What to include#

  • Consignor and consignee. Consignor name/address; consignee (shop/gallery) name/address; agreement date and store location.
  • Goods and pricing. List (or attach a schedule) of items consigned, description, SKU, and retail price; who sets price and whether discounts are allowed.
  • Commission and payment. Commission percentage to consignee (e.g. 40-60%), consignor share, how and when consignor gets paid (monthly, on sale), and any fees (setup, marketing, credit card processing).
  • Duration and unsold goods. Consignment period (typically 30-90 days), what happens if items do not sell (returned to consignor, donated, discounted automatically), and pickup deadline for returns.
  • Insurance, loss and other terms. Consignee responsibility for damage/theft while in store, insurance carried, exclusivity (if any) within area, marketing duties, and governing law.

How to fill it in#

  1. Step 1: Inventory everything

    Attach an itemised list with description, price and SKU; both parties initial the inventory list.

  2. Step 2: Set commission and discounts up front

    Agree on commission % and whether discounts reduce consignor share proportionally.

  3. Step 3: Define the consignment period

    Typical 60-90 day cycles; after that items are returned or auto-discounted.

  4. Step 4: Insure the goods

    Consignee should carry insurance covering theft/damage; state responsibility in the agreement.

  5. Step 5: Get paid on schedule

    Monthly payouts with a sales report showing which items sold and net proceeds to consignor.

Bill of sale

Used when items sell outright.

Sales commission agreement

For commissioned sales reps (different structure).

Retainer agreement

Ongoing service retainer (different from goods consignment).

Purchase order

For wholesale purchases (non-consignment).

Free contract templates

Full template library.

Questions

Who owns the goods on consignment?

The consignor retains ownership until sold; unsold goods must be returned.

What if something is stolen or damaged?

The consignee usually bears risk and should insure — state this clearly in the agreement.

Can the shop discount items?

Only as agreed; specify markdown rules (e.g. after 60 days shop may discount up to 20% with commission adjusted).

When do I get paid?

Typically at month-end following a sale, with an itemised sales report.

Do I need an inventory list?

Yes — attach an itemised schedule as an exhibit and update each cycle.

Browse all templates →

These are general templates, not legal or tax advice. Have anything unusual reviewed for your jurisdiction.

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