InvoiceFlow for Handmade Crafts Sellers: The Complete Billing Guide
Billing for consignment, wholesale, custom commissions, craft fairs, and online sales
Handmade craft sellers operate across more billing models than almost any other small business: consignment settlements with monthly inventory reconciliation, wholesale orders with MAP policies and net-30, custom commission deposits with cancellation terms, craft fair retail receipts, and platform supplemental invoices. InvoiceFlow handles all of these from one Android app — with templates for each billing type, deposit tracking for commissions, and the wholesale invoice format that retail buyers require.
Consignment Settlement Invoices
Consignment is the arrangement where your products sit in a retailer’s shop and you get paid only when items sell. Monthly settlement invoices track what sold, at what price, and your share.
Consignment Settlement — [Retailer Name] — [Month Year]:
Account Details:
- Retailer: [Business name] | Consignment agreement date: [Date]
- Settlement period: [Start date] – [End date]
- Terms: [N]% to maker | [N]% to retailer (typically 60/40 or 50/50)
Sales This Period: | Item | Retail Price | Qty Sold | Maker % | Per-Piece | Total | | [Product 1] | $[retail] | [N] | [N]% | $[amount] | $[total] | | [Product 2] | $[retail] | [N] | [N]% | $[amount] | $[total] |
- Total remittance this period: $[total]
- Inventory on hand at period end: [N] pieces (see attached inventory log)
- Inventory notes: [Any damaged, returned, or missing pieces]
- Payment due: Within [N] days of this settlement
Always attach an inventory log. The log should list every piece currently in the shop by item name, SKU (if you use them), and the retail price tag on it. Without an attached log, you’re trusting the retailer’s count entirely.
Managing Consignment Risk
Consignment ties up your inventory capital indefinitely. To manage this:
- Set a maximum consignment period (e.g., 90 days) after which unsold items are returned at the retailer’s expense
- Document the return policy in the consignment agreement and reference it on every settlement invoice
- Photograph your inventory before consigning — condition documentation for any damage claims
Wholesale Order Invoices
Once a consignment retailer has proven sell-through, transitioning to wholesale is better for your cash flow — you get paid regardless of what sells.
Wholesale Order — [Retailer Name] — [Date]:
Account Details:
- Customer: [Business name] | Account #: [####]
- PO Number: [PO-####]
- Resale certificate: On file | Certificate #: [####] | Expires: [Date]
- Billing address: [Address] | Ship-to: [Address]
Order Items:
- [Product name] — [SKU if applicable] | Qty: [N] | Wholesale price: $[rate] | Extended: $[total]
- [Product name] — [SKU] | Qty: [N] | Wholesale price: $[rate] | Extended: $[total]
- Subtotal: $[total]
- Shipping and handling: $[amount]
- Tax: $0.00 (resale certificate on file)
- Order total: $[total]
Payment Terms: Net-30 MAP Policy: Wholesale pricing assumes items will be retailed at no less than [N]× wholesale (minimum advertised price policy). Violations may result in loss of wholesale eligibility.
Wholesale Pricing Formula
Most handmade makers use a cost-based wholesale formula:
- Materials cost × [multiplier] = production cost
- Production cost × 2 = wholesale price
- Wholesale price × 2–2.5 = retail price
If your retail price is $60, your wholesale is approximately $28–$30, and your materials and labor should be $14–$15 or less per piece to maintain margin.
Document the pricing in your wholesale terms — not on the invoice, but in the account agreement. Retailers appreciate understanding why your pricing is what it is.
MAP Policy Language
Include MAP policy on every wholesale invoice:
“Wholesale pricing assumes items will be retailed at no less than [N]× wholesale price. [Studio name] reserves the right to discontinue wholesale pricing for accounts found retailing below MAP.”
For online retailers, extend the policy to online listing prices: “Includes online/marketplace pricing.”
Custom Commission Invoices
Custom Commission — [Client Name] — [Date]:
Commission Details:
- Commission: [Description — e.g., set of 8 stoneware dinner plates, custom celadon glaze, monogram stamp]
- Specifications: [Dimensions, glaze color, finish, quantity, specific requirements]
- Reference images: [Attached or referenced]
- Estimated completion: [Date range]
- Shipping: [Pickup / shipped to address]
Pricing:
- Commission fee: $[amount]
- Rush surcharge (completion within [N] weeks): $[amount]
- Shipping: $[amount]
- Total: $[total]
Payment Schedule:
- Deposit (50%, non-refundable, due at order confirmation): $[deposit]
- Balance (due at completion, before pickup or shipment): $[balance]
Cancellation Policy:
- Deposit non-refundable upon confirmation
- Cancellations after production begins: full commission fee charged
- Custom pieces may be offered for general sale if commission is cancelled after production
Commission Specification Documentation
The specifications section of the commission invoice doubles as the production record. Be specific:
- Glaze name and reference number (if you track glazes)
- Dimensions: height × width in inches
- Firing temperature and cone (if relevant to the finish)
- Any references or inspiration images attached
The more specific the invoice, the less room for disagreement about whether the finished piece matches what was ordered.
Craft Fair and Market Retail Receipts
Retail Receipt — [Studio Name] — [Date]:
- Event: [Craft fair name, location]
- Total: $[price]
- Payment: [Cash / Card / Venmo]
- Note: Handmade [medium] — [Studio name, city, state]
- Contact: [Website, email]
Send receipts to the customer’s email immediately. Interior designers, gift buyers, and business buyers often need receipts for expense reports.
Platform and Online Marketplace Invoices
For Etsy, your own website, or other platforms, supplemental invoices are sometimes needed:
- International buyers (customs declaration support)
- Business buyers (expense reporting)
- Wholesale inquiries initiated through the platform
Online Sale Invoice — [Customer] — [Date]:
- Platform order #: [####] | Platform: [Etsy / Website]
- Item: [Description] — $[amount]
- Shipping: $[amount] | Total: $[total]
- Note: This invoice is for [customs / expense] purposes. Platform transaction record is authoritative.
Using InvoiceFlow for Handmade Crafts Billing
Consignment templates: Build a monthly settlement template with the item/price/percentage table format. Attach the inventory log as a PDF or reference it by date. InvoiceFlow’s recurring invoice feature can auto-generate the settlement reminder on the same day each month.
Wholesale templates: Build separate templates for wholesale and distribution tiers. Pre-load the MAP policy in the Notes field. Save the resale certificate expiration date in the client account notes.
Commission deposit tracking: When a client pays the 50% deposit, InvoiceFlow records the payment and generates the balance invoice with the remaining amount. Both invoices reference the same commission ID.
Craft fair receipts: Build a simple retail receipt template in InvoiceFlow. At the fair, fill in items and total, select the customer (or add them on the spot), and send via email. Thirty seconds per transaction.
Pricing and Margin Guide for Handmade Sellers
The sustainable pricing formula for handmade goods:
- Materials cost per piece: track actual spend
- Labor cost per piece: your hourly rate × hours per piece
- Overhead cost per piece: studio rent, utilities, tools ÷ pieces produced
- Production cost = materials + labor + overhead
Pricing tiers:
- Retail price = production cost × 4–6 (4 for high-volume; 6 for premium/limited)
- Wholesale price = retail ÷ 2–2.5
- Consignment take = retail price × your percentage (typically 50–60%)
If wholesale pricing doesn’t cover 2× production cost, the retail price is too low or production costs are too high.
Handmade Crafts Invoice Checklist
Before sending any wholesale or consignment invoice:
- Account name and period/order date
- PO number for wholesale accounts
- Resale certificate on file (confirmed and not expired)
- Itemized products with unit prices and quantities
- MAP policy note for wholesale orders
- Settlement period, item list, and percentage calculation for consignment
- Inventory log attached for consignment settlements
- Deposit amount and balance due date for commission orders
Download InvoiceFlow. Build your consignment settlement template with the inventory log reference. Build your wholesale template with MAP policy and net-30 terms. Add the deposit structure to commission invoices. The boutique account that reorders quarterly provides income in months when fairs are slow.
InvoiceFlow is a free Android invoicing app built for small business owners. Send professional invoices, track consignment settlements, manage wholesale accounts with MAP policies, and handle custom commission deposits — all from your phone.