Consignment Inventory

Tags: Glossary

Inventory that is held by a customer or third-party logistics provider (3PL) until it is sold.

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What is a Consignment Inventory?

Consignment inventory in shipping refers to a situation where the seller (consignor) ships goods to a buyer (consignee) but retains ownership of the goods until they are sold. The consignee stores the goods and pays the consignor a commission on the sale price of the goods. 


Unlike traditional inventory, where the buyer purchases the goods and assumes ownership and risk, consignment inventory allows the seller to maintain ownership and control of the inventory until it is sold. This can reduce the risk for the consignee and allow the consignor to maintain greater control over the distribution and sale of their goods. 

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