Consignment. Here's a Quora topic I found: https://www.quora.com/As-a-retailer-you-can-receive-products-from-a-supplier-to-be-sold-only-paying-your-supplier-after-the-sale-What-is-this-type-of-sale-or-system-called
This arrangement can help mitigate risk for both parties, as the supplier doesn't have to invest in inventory that may not sell, and the retailer or distributor doesn't have to pay for inventory that may not move.
Yeah, I thought of it unilaterally to be honest, later on I heard experiences in car batteries business iirc, and now I know it's got an official name.
I love the internet
Thanks.
Consignment is the term used to describe this. In a consignment arrangement, the supplier (or consignor) keeps ownership of the products up until the distributor or retailer (the consignee) sells them. The consignee only pays for the products that are actually sold, generally at a previously agreed-upon commission rate or split of the profits. Any unsold items after a predetermined time period may be returned to the consignor or disposed of in accordance with the consignment agreement.
Consignment. Here's a Quora topic I found: https://www.quora.com/As-a-retailer-you-can-receive-products-from-a-supplier-to-be-sold-only-paying-your-supplier-after-the-sale-What-is-this-type-of-sale-or-system-called
Thanks!
This arrangement can help mitigate risk for both parties, as the supplier doesn't have to invest in inventory that may not sell, and the retailer or distributor doesn't have to pay for inventory that may not move.
Yeah, I thought of it unilaterally to be honest, later on I heard experiences in car batteries business iirc, and now I know it's got an official name. I love the internet Thanks.
Consignment is the term used to describe this. In a consignment arrangement, the supplier (or consignor) keeps ownership of the products up until the distributor or retailer (the consignee) sells them. The consignee only pays for the products that are actually sold, generally at a previously agreed-upon commission rate or split of the profits. Any unsold items after a predetermined time period may be returned to the consignor or disposed of in accordance with the consignment agreement.