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What Is Consignment Inventory? How the Model Works
If you have ever seen a product on a shop shelf that the shop did not actually pay for until it sold, you have seen consignment inventory at work. The supplier still owns those goods. The shop is simply holding and selling them, and money only changes hands once a customer buys. It is one of the oldest arrangements in retail, and it has quietly moved online, shaping how some marketplaces, boutiques and dropship-adjacent models operate today. This guide explains exactly what consignment inventory is, who the two parties are, how the process and the accounting work, where it helps and where it bites, and how to keep the stock counts honest when consigned goods are sold across several channels at once.