Consignment Inventory Management For Dummies
                     Consignment 
Inventory 
Management 
For Dummies
What Exactly is 
Consignment Inventory?
Consignment inventory is a supply chain strategy where a retailer agrees to sell a 
product and store it in a warehouse
Consignment sales underpin a In retail, all suppliers have products Traditional retailers control 
big chunk of retail sales in the that they believe will sell if they can the display of products that 
States and around the world be put in front of consumers consumers see
Pros and Cons of 
Consignment Inventory
FOR THE SUPPLIER FOR THE RETAILER
Suppliers are willing to climb out The retailer takes the relatively 
on a branch and absorb the risks lower risk of dedicating retail 
in selling their product. They space to the unproven product 
realise that in-store exposure and for a period of time. Physically 
marketing is critical for a new store the goods in a warehouse 
product and absorb the costs of moving 
them around
Consignment sales 
work best for
Selling expensive products, 
Trying new and unproven 
think second-hand handbags 
products in the market
and cars
Pushing existing products into 
Cutting out competition
new sales channel
What You Need to Look Out For 
With Consignment Inventory
 How long will the retailer 
hold the inventory for sale? You will conclude 
 How much will the goods 
be sold for? a consignment 
 Who is liable if the stock sales agreement 
gets damaged in the 
retailer’s store? with a handshake 
 How often will sold goods and/or a hug
be invoiced? Monthly or 
quarterly?
Using Software to Manage 
Consignment Inventory
Free cloud-based order, purchase, and inventory management software 
called EMERGE App
READ THE ENTIRE BLOG
https://emergeapp.net/sales/consignment-inventory-
management-for-dummies/
Quick Video Tutorial to 
Get Started with 
Consignment Inventory 
Management
https://youtu.be/JJoYmNwnSKI