Goods on Consignment
How to Define the Term Goods on Consignment
Goods on Consignment are those goods held by a firm for release, but which title remains with the manufacturer or owner of the product.
In effect, the merchandiser has agreed to display the goods but, for a variety of reasons, is not willing to purchase them. When and if the retail firm sells the consigned goods, it receives a commission. However, until the sale takes place, the title to the goods remains with the manufacturer, although they are on the premises of a different firm. The manufacturer of the items is willing to accept such an agreement in order to get new or unusual goods into the hands of retailers for possible sale. Retailers agreed this arrangement because they do not have to accept the risks of ownership and will still receive a commission if the goods are sold.
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.