Channel Tool 11

Consignment
vs WS Break-Even

At what sell-through rate does consignment beat wholesale? Compare net revenue, cash flow timing, and inventory risk across both models. Know before you place the product.

1Product & Pricing

Unit COGS ($)

Wholesale Price ($)

Retail / MSRP ($)

Units Placed per Location

Units on consignment per retail location

Number of Locations

2Wholesale Model

Net Terms (days)

Days to payment after shipment

Expected Fill Rate (%)

% of placed order actually shipped

Returns / Allowance (%)

% of invoice backed out later

WS Net Revenue (per placement)

WS Net Revenue (all locations)

3Consignment Model

Consignment Split - Brand (%)

% of retail sale to brand

Expected Sell-Through (%)

% of units placed that sell

Avg Days to Payment

Consignment typically slower

Return Shipping Cost ($/unit)

Unsold units returned to brand

Consignment Net (per location)

Consignment Net (all locations)

4Break-Even Analysis

Break-Even Sell-Through (%)

Consignment = wholesale at this rate

Consignment Advantage at Target ST

Net Revenue Delta - Consignment vs WS - at current sell-through assumption

WS Net
All Locs

guaranteed

Consign
Net All

Break-Even
Sell-Thru

Wholesale Revenue Build

Units per location × WS price -

× Fill rate -

− Returns / allowance -

WS Net / Location -

× Locations -

Total WS net revenue -

Consignment Revenue Build

Units placed × MSRP × brand % -

× Sell-through rate -

− Return shipping (unsold) -

Consignment Net / Location -

Sell-Through Sensitivity

Sell-Through	Cons Net/Loc	vs WS/Loc	Verdict

Consignment math.When is it worth saying yes?

Consignment math.
When is it worth saying yes?