Difference Between Consignment and Sale: A Simple Guide

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The world of supply chain management (SCM) has many terms that are all used interchangeably in the colloquial sense. When you have an eCommerce business and are shipping orders every day, it is time you understand what each of these terms means. You should use them in the right places to avoid confusion and misunderstandings that can disrupt efficiency and hinder the flow of your supply chain processes.

In today’s world, producers of larger companies do not directly interact with their consumers. They make use of middlemen to get in touch with the buyer. The middlemen are generally both retailers and wholesalers. With the rise in belize phone number list eCommerce and other technologies, producers also link up with other channels to distribute their produce. In this world, a producer or even a wholesaler hires agents in a variety of markets to sell their products on behalf of them for a fee. This type of setting is known as consignment. Sale, on the other hand, is simply a mutual contract between a seller and a buyer.

This blog shines a light on the difference between the two to make you understand how and when these terms must be used. Also, how they connect to be used interchangeably.