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Consignment.

The brand ships goods but keeps ownership until they sell. The retailer pays for what sold and returns the rest.

What it means

The brand ships goods but keeps ownership until they sell. The retailer pays for what sold and returns the rest.

What goes wrong

It looks like a low-risk way in and it moves ALL the inventory risk onto the brand, who is now financing stock sitting on somebody else's shelf. It is a cash-flow decision, not a sales decision.

More in Orders & terms

Every term here is one the protocol actually uses, defined for somebody who was never taught it — with the part that usually goes wrong. All terms →