At a Glance
- Consignment profit splits in cannabis are set per product category, per vendor
- Common split range: 50/50 to 70/30 vendor/retailer depending on category
- Category-specific splits override the default; 50/50 is the system fallback
- Split changes are logged and take effect on the next settlement cycle
- Every split is visible on the weekly settlement report
How Consignment Profit Splits Work in Cannabis
Consignment profit splits determine how sale revenue is divided between you and your vendor. On ShelfSpace, splits are configured at the category level — flower might be 60/40 (vendor/retailer), while edibles are 55/45. This gives you precise control over margins across your entire consignment program without negotiating product-by-product.
Every split is defined as a vendor percentage. The retailer's share is simply the remainder. When a $50 unit of flower sells at a 60% vendor split, the vendor receives $30.00 and you keep $20.00.
Category-Level Splits vs. Default Splits
Each vendor partnership can have a default split that applies to all categories, plus category-specific overrides for individual product types. The system resolves splits in this order:
- Category-specific split — if flower has its own percentage, that's what gets used for flower sales
- Default split — if no category match exists, the partnership's default split applies
- System fallback — if neither is set, ShelfSpace defaults to 50/50
This layered approach means you can set a single default for most categories and only define overrides where the economics differ — like giving a higher vendor share on high-margin concentrates to attract premium brands.
How Splits Are Negotiated
During onboarding, you tell us your preferred split ranges for each category. We configure those in ShelfSpace and present them to the vendor through the vendor portal. Both sides can propose adjustments through a negotiation log that tracks every change.
Common starting points in the cannabis industry:
- Flower: 55–65% vendor
- Concentrates: 55–60% vendor
- Edibles: 50–55% vendor
- Pre-rolls: 55–60% vendor
- Accessories: 45–50% vendor
These ranges vary by market, brand strength, and volume. A vendor moving high volume might negotiate a better split; a new brand testing a market might accept a lower share. The terms are part of the consignment contract.
How Splits Appear in Settlements
The settlement report breaks down revenue by category, showing the split percentage, gross sales, vendor share, and retailer share for each. This makes it easy to see which categories are driving vendor payouts and where your margins are strongest.
If splits are updated mid-cycle, the new percentages take effect starting with the next settlement period. Historical settlements are never recalculated — the split that was active when a sale happened is the split that stays on record. Every change is timestamped in the negotiation log for full audit transparency.