inventory consignment

inventory consignment refers to a business arrangement where goods are sent to a retailer or distributor but remain the property of the supplier until they are sold to a customer. In an inventory consignment model, the supplier retains ownership of the inventory and only receives payment once the products are sold. This arrangement is beneficial for retailers who may not have the upfront capital to purchase inventory outright, as well as for suppliers who can expand their reach without needing to manage retail locations directly. Consignment agreements often include specific terms regarding payment, sales reporting, and inventory management.