The impact of goods consignment

[Starmix]

If you are a business owner, accept someone who offers a consignment basis for the goods to offer you. You can arrange with that person about the percentage you will get being the seller of his goods. You have to put it into writing as proof in case the goods will not all be disposed. You have to state in your agreement that you are not liable to pay for the unsold goods.

Goods consignments is a business arrangement where one party delivers goods to another party who sells the goods on behalf of the consignor. The consignor retains ownership of the goods until they are sold, reducing the risk of unsold inventory. Consigning goods allow the consignor to expand, market reach without setting up own retail infrastructure.

Payment is typically received only after the goods are sold, which might affect immediate cash flow. The consignee doesn’t need to purchase inventory upfront, reducing capital requirements. There is risk of stock handling, it’s therefore the sole responsibility of the consignee to protect the storage and care of goods that can add operational complexity and risks.

The consignee earns commission of a portion of sales, providing motivation to sell effectively. Consignment arrangements ca increase product variety in rental outlets. It may increase impact pricing strategies and promotional activities since goods are owned by consignors.

 

[Augusta]

This is almost like drop shipping online. I like this idea as you might not need any initial payment to start off

 

[Starmix]

Consignment strategy helps the consignor. He can save more. He only waits for the sales where his goods are consigned, There is no need for him to rent. It's the consignor to shoulder it. There's give and take.