Rugs remain a basic element of home decor, and attractive used rugs appeal to budget-conscious shoppers. Selling rugs on consignment helps you avoid time-consuming yard sales and flea market booth fees. It also helps you avoid negotiating sales with strangers met through online or offline bulletin board ads. Consignment selling involves turning the rugs over to a consignment retailer and receiving a payment, minus the store's commission, for any sales.

Acquire Rugs to Sell

Moving sales and yard sales can be a good source for inexpensive rugs. View each rug you consider buying from the consumer's perspective to determine whether you can offer it at a bargain price. Avoid rugs with significant wear, stains or damage. Buy used rugs at a reasonably low price to ensure a profit after the shop commission subtracts commission after a sale. The profit margin helps cover your shopping time and the expense incurred picking up rugs from sellers. Dealing in several sizes and types of rugs, such as runners for hallways, entry rugs and area rugs, increases your sales.

Prepare the Rugs for Sale

Clean and deodorize your rugs. Quality consignment shops typically do not accept merchandise in poor condition. Before taking the rugs to a consignment shop, check the prices of similar rugs to know how much to ask for your rugs. A used rug may sell for less than 50 percent of a comparable new one, unless it is something special such as a hand-woven rug. However, the condition and desirability of each rug ultimately determines its price. If you plan to sell antique or one-of-a-kind rugs, such as Navajo or Persian rugs, consider seeking an expert appraisal.

Select Consignment Shops

Match your rug inventory to consignment shops. If you have average, inexpensive machine-made rugs, for example, they may sell faster at moderate- or low-priced consignment stores. Costly, handmade rugs in good condition are more likely to find buyers at high-end consignment retailers. Additionally, busy consignment stores in high-traffic areas tend to move merchandise more quickly than those located in low-traffic areas.

Review the Terms of Sale

Contact local consignment stores and review their contracts carefully. Consignment commissions typically range between 40 to 60 percent of the final sales price. Ensure that you understand all the terms of the contract before signing it. Some consignment contracts, for example, specify that you could forfeit the rugs if they don't sell and you don't pick them put by a certain date. If you move, provide the stores with your change of address ahead of time to ensure that you receive payment when your rugs sell. Get a receipt from the consignment store owner that lists each rug, its price and the terms of the consignment agreement.

Consignment Selling Tips

Consigning rugs to more than one store may increase your odds of making sales and growing your business grow. Talk to shop owners and sales people about popular rug sizes, styles and colors to guide your future selections. As the rugs sell, buy more rugs with at least half of your proceeds.