The Nature of Consignment: A Win-Win Arrangement

Consignment is a business deal where one person, the consignor, gives goods to another person, the consignee, to sell. The consignee does not buy the goods upfront. Instead, they sell the items and pay the consignor a part of each sale. This arrangement benefits both sides.

The consignor can sell products without running a store. They focus on making or finding items. The consignee uses their shop and customer reach to make sales.

The consignee, usually a retailer, can stock a wide range of goods with little risk. They only pay for what they sell and keep a commission on each sale.

Consignment is common in boutiques, antique stores, craft fairs, and flea markets. Terms often include a share of sales, the time items stay in the shop, and rules for unsold items.

Overall, consignment helps both consignors and consignees. It makes inventory management easier and creates more sales opportunities.

Managing Consignment Inventory

Consignment software tracks consignor inventory in the store’s system. It allows for easy stock control, automatic markdowns, and detailed reports. Key features include:

Markdowns on aged inventory
Barcoded labels for quick checkout
Real-time updates when items are sold
Tax and discount settings by product type

The software also handles returns, destruction of unsold items, or transfers of ownership.

Client Management

Good consignment software supports different customers: consignors, buyers, suppliers, and renters. It offers tailored workspaces and smooth communication.

Point-of-Sale (POS) Features

Consignment software splits sales proceeds among consignors. Each item sold is linked to its consignor. The system automatically calculates commissions. It works with payment processors to ensure smooth transactions.

Settlements with Consignors

Managing settlements is a key feature of consignment software. Automated systems make sure consignors are paid on time. Detailed reports help track sales, commissions, and earnings.

Extra Features

Beyond the basics, consignment software often has features like wishlist management, layaway tracking, and rental options. This provides more flexibility to businesses.