A guide to selling artwork on consignment

Henri Matisse said it best: “Creativity takes courage”. Well, selling your creative works takes a lot of courage, too! No matter your craft, selling your artwork on consignment can be a great way of getting your work out there, building your brand and boosting your income, without needing to run your own shop or rent your own space. Are you ready to take the leap?

A consignment is a type of sales arrangement involving two parties, where the consignor agrees to deliver works or products to the consignee to sell on their behalf. The agreement will typically involve the owner of the artwork (consignor) receiving the sale proceeds, minus the commission or fee imposed by the consignee for storing, displaying and selling the works. 

The agreement between a consignor and consignee should ensure both parties know their responsibilities and have their interests and rights protected. The agreement might include details like:

• retention of title
• what goods are being sold, and who owns them until they’re sold 
• the length of the consignment period 
• pricing, commission and payment structures
• what happens if there’s damage
• what happens if goods aren’t sold
• termination rights.

As with any contract or legal matter, it’s always best to seek advice from a lawyer.

All sorts of works can be sold on consignment, no matter how big or small they are. Galleries, boutiques and artisan markets will commonly accept a variety of art and hand-crafted items, including:

• paintings, drawings and prints
• hand-made quilts, knitted toys and clothes
• ceramic homewares and sculptures
• functional or decorative wood and metal works
• and more.

It’s all about building connections and looking for the right kinds of galleries or dealers that fit with your style and offering. 

It’s a good idea to register your security interest on your artwork on the PPSR. It can help ensure you’re not left out-of-pocket if a gallery or dealer goes broke and doesn’t pay you and ensures that liquidators know that the unsold artwork belongs to you.

If you do decide to register your artwork, you can create one registration to cover all art consignments with the dealer or gallery you have a contract with. There’s no need to register each artwork individually.