GlossaryRetail & Inventory
Consignment Stock
Also called: consignment inventory, sale or return
What is Consignment Stock?
Consignment stock sits in your store but remains the supplier's property until it is sold. You pay only for what sells, and unsold goods go back rather than being written off.
Why Consignment Stock matters
Consignment removes the cash risk of stocking new or slow lines, which is why it is common for books, jewellery and new brands entering a store. The trade-off is usually a thinner margin.
How Consignment Stock works in practice
Keep consignment goods identifiable and counted separately from owned stock, and reconcile sales with the supplier on an agreed cycle. It should not appear as your inventory on the balance sheet.
Frequently asked questions
No. It belongs to the supplier until sold, so it should not be valued as your inventory.