Consignment selling

Consignment selling lets a retailer offer an owner's goods without purchasing them upfront. The supplier retains ownership until the goods sell. The retailer then accounts to the owner and retains the agreed remuneration. This differs from ordinary wholesale purchasing, where the retailer buys stock on its own account.[1]

Agree how sales are recorded, when proceeds are transferred and how unsold or damaged goods are handled.[1] A homeware shop could use consignment to test a new collection. Identify consigned stock separately in its records: possession in a warehouse does not necessarily mean the goods belong to the retailer or should be treated as its own inventory.