While direct possession of the goods is tasked to the consignee, in the act of consigning, the consigner retains legal ownership of the goods until they are sold.Ī typical consignment arrangement might work like this: A wholesaler consigns goods to a retailer that specialises in selling the particular items involved (whether it be children’s clothing and toys, sportswear, or antiques, for example). The consignment store agrees to pay the wholesaler a cut as and when the goods are sold. So, usually, a wholesaler would be the consignor, and a retail store would be the consignee. The term is originally derived from the French verb, ‘ consigner’-meaning ‘to deposit’. In short, consignment is a type of business arrangement where one business (the consignor) agrees to place its goods into the inventory of a second party (the consignee) either for a specified period of time or simply until they are sold. By the end, you should have a much clearer idea of what consignment is, what it can do for eCommerce and other retail businesses-including wholesalers-and what your business could potentially stand to gain from it. In addition, we’ll discuss the challenges retail stores face in adopting the consignment model. We’ll discuss their advantages for retailers and what both consignors and consignees can get out of the deal. But just what does that mean? In this concise guide, we’ll provide a short definition of consignment agreements and what they are. The advantages of the consignment business modelĪ growing number of wholesale retailers are adopting consignment arrangements.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |