consigned goods
goods held for sale by one party although ownership of the goods is retained by another party
Consigned goods refer to goods that are transferred to a retailer or a third-party seller, who will sell the products on behalf of the supplier or manufacturer. The supplier retains the ownership of the goods until they are sold, and the seller agrees to sell the goods and receives a commission for the sale.
In the consignment process, the supplier retains the risk of loss or damage to the goods until they are sold, and any unsold goods can be returned to the supplier. The retailer or seller also benefits from the arrangement as they can offer a wider range of products without having to invest in inventory upfront.
However, consignment can also pose some risks for the supplier, such as the potential for loss or damage to the goods, or the risk of non-payment from the retailer. It is important for both parties to have a clear agreement outlining the terms of the consignment arrangement, including the pricing, payment terms, and terms of return.
One important consideration in consignment is to ensure that the products are properly labeled and monitored to prevent theft or loss. Consignment can be a useful sales strategy for suppliers and retailers alike, but it requires careful planning and management to ensure its success.
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