What is Consignment and How Does it Work?

Learn how consignment agreements work—how ownership, risk, and profits are shared when retailers sell products they don’t yet own.

Description Key takeaways

About this episode

Unlock the secrets of consignment and discover how this powerful selling method offers unique advantages and challenges for both sellers and buyers. Whether you're an entrepreneur or a curious shopper, learn how consignment can open new opportunities for selling and finding unique products.

Key Takeaways

What is consignment: It’s a selling model where ownership stays with the consignor until the item is sold.
Consignment agreements: These define the roles, responsibilities, and profit-sharing terms between consignors and sellers.
Benefits and risks: Consignment lowers upfront costs for sellers but can lead to delayed payments and added risk.
Value for buyers: It gives customers access to unique or hard-to-find products outside of traditional retail.
Strategic decision-making: Weighing the pros and cons helps entrepreneurs choose the right selling approach for their business.