Consignment Inventory Management

Consignment inventory management is the process of tracking and managing inventory on consignment. This model can also describe the management of inventory that is bought outright, donated, or resold in some capacity.

Consignment software is software that is designed to support the resale industry, including consignment, thrift, vendor malls, and resale stores. Consignment software often includes inventory management, point of sale (POS or VPOS), consignor payouts, integrated payments, virtual terminals, and can integrate with your POS system.

Within a consignment arrangement in which a store takes inventory on consignment, that inventory is not considered an asset since ownership is not transferred until the actual sale. Consigned inventory item is considered a liability on the consignor’s books until it is sold to a third party. When it sells, the consignor and consignee will split the sale.

Consignment inventory is a supply chain model common in the resale industry in which individuals or businesses will consign things they own but do not use anymore. Consigned inventory can run the gamut and includes items like handbags, clothing, furniture, vintage and antiques, art, jewelry, and more.

The party responsible for inventory control and management in consignment is the consignee, who holds the property until it sells. Inventory management ensures that items for sale are in stock, on hand, and merchandised correctly. It is a best practice in consignment stores to run frequent inventory checks to manage shrinkage, discounts, and seasonal changes.

Yes, a consignment point of sale software can help with inventory management if it includes that functionality. For example, SimpleConsign is both a point of sale and inventory management system that consignment stores and resale businesses use to track, merchandise, and manage their consignment, store owned, vendor sourced, or donated inventory.