Consignment is an arrangement where a brand places goods with a retailer but retains ownership until the goods are sold to a consumer.
Sep 24, 2026
Under consignment the retailer does not buy the goods. They hold them, sell them, and pay the brand an agreed share of the proceeds, returning whatever has not sold at the end of the period. The brand carries the inventory on its own books throughout.
This reverses the usual risk split in wholesale. In a normal wholesale sale the retailer takes ownership and the markdown risk at the moment of delivery; under consignment both stay with the brand.
Consignment is common when a brand wants distribution it could not otherwise win: a prestigious door, a new market, or a category the retailer is unsure about. It is also used for high-value goods where the retailer cannot justify tying up cash.
The cost is operational. Stock sitting in someone else’s store still has to be tracked, replenished, counted, and eventually recalled, and revenue cannot be recognised until a sale happens. Brands that run consignment at scale need stock visibility per door rather than per warehouse.
This one is different.
Have a look around and see what you think.We use cookies to measure and improve your experience. For more information, please read our cookie policy.