Consignment is a great marketing tool if you use it wisely.  Many businesses deliver their product to stores that act as their sales agents and these stores pay them for the products after they’ve sold.  The technicalities of a consignment has to be understood first before engaging in this type of system.  Yes, your merchandise may be moving but does your receivables fare well in the books?

Here are tips on consigning your goods:

Check your consignees background: Before consigning your goods, ensure that you’re giving your products to a reputable store.  Choose your consignees very well.  Your stocks will be in their store for a long period of time, it is good that you trust them with your stock.

Put in on record: Making a record of your inventory and following up before the agreed selling period ends is an assertive way of checking your sales.  You will know the estimated amount of remittance and an idea of how much stock is left.

Test the waters: If this is your first time to consign, bring in a few items first to test the waters.  Sample 10-12 items and see which items will your consignee like.  Do not expect though that all of your items will be accepted.  Shops will only accept things that they think their customers will buy.

Consignment could be advantageous for your business if used wisely, you just need to know how the consignment will work for you and your business.