Startups Stack Exchange Archive

Is buying and keeping stocks from suppliers to sell a form of consignment?

• posted by: xenon on 2015-04-26
• tagged: business-model, sales
• score: 2

If I pay to buy an amount of stocks from a wholesaler, keep the stocks and sell it to my customers, do you call this method of selling consignment?

I used to think of this as consignment until I read recently that in consignment I wouldn’t have to pay the supplier first, which in my case, I had.

Answer 4119

• posted by: Denis de Bernardy on 2015-04-26
• score: 2

The answer is in the question.

As you’ve correctly learned, in consignment you do not pay the supplier first, which in your case you have.

The OS X dictionary offers:

agreement to pay a supplier of goods after the goods are sold: new and used children’s clothing on consignment.

So no, what you’re doing is not selling on consignment.

---

All content is licensed under CC BY-SA 3.0.