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It is important to realize the fact that the consignee is supposed to return the goods back to the consignee, in case any agreement clauses are not met, and if the consignee is unsuccessful in selling the goods. On the other hand, the consignee simply undertakes the responsibility of selling the goods owned by the consigner, in exchange for a certain cut. In the case where consignees fail to deliver the goods, the stock is returned back to the consigner. Since the stock ownership lies with the consigner, the consigner does not undertake any responsibility associated with the inventory.Ī consignee might also enter into agreements with various consignees. In other words, they are the initial owners of the inventory that is meant for resale.

Parties involved in Consignment InventoryĬonsignment Inventory mostly consists of two parties: the consigner and the consignee.Īs far as the consigner is concerned, it is defined as the party that takes ownership of the stock. The holder of the inventory (the reseller) mostly does not undertake any responsibility for the damage that might be incurred to the inventory during the stock arrangement. The owner will receive the stock back if the inventory is left unsold. In this regard, the main objective of the holder is to sell the inventory on the behalf of the initial owner of the inventory. This agreement mostly specifies that one party must hold inventory for another party for a specific purpose. Consignment inventory refers to an inventory arrangement that results from an agreement.