What Are Consigned Items
A consigned item is an item that you haven’t purchased from a vendor, but that the vendor has provided for you to sell on their behalf. This means that even though the item is in your possession and displayed in your store, it still belongs to the vendor.
Consigning items can be an effective way to diversify your inventory and offer your customers a wider range of products. It also allows vendors to reach a wider audience without having to manage their own retail operations. And, if you’re concerned about cash flow, consignment can be an excellent option because you don’t have to pay for the items until they’re sold.
So, what happens to consigned items? There are three possible outcomes. First, the item is sold to one of your customers and you pay the vendor for the item. Second, the item isn’t sold, but you decide to purchase it from the vendor anyway. And third, the item isn’t sold and gets returned to the vendor.
If you’re interested in offering consigned items in your store, it’s critical to have a clear agreement with your vendor outlining the terms of the consignment. This should include details such as the commission rate, how long the items will be on consignment, and who is responsible for any damages or losses.
Benefits of Consignment Inventory for Retailers
With the Purchase Consigned platform, retailers can display products for sale without investing in them, giving them the freedom to allocate their funds to other important business expenses.
Gone are the days of worrying about unsold inventory weighing retailers down. With this platform, retailers can freely test out new types of inventory before committing to a major investment, allowing them to make informed decisions about what products to stock.
Our platform offers a risk-free solution for retailers looking to expand their inventory and increase their profits. When products don’t sell, they can easily return them to the manufacturer without bearing the responsibility of paying for them.
Consigned vs Non-Consigned Inventory
Our Consigned PO feature allows you to mark individual items as consigned or non-consigned, giving you the flexibility to manage your inventory as you see fit. With our Consigned PO feature, you can easily add new items to your purchase orders and choose whether to make them consigned or not. Whether you need to keep track of consigned items for accounting or inventory purposes, or simply want to ensure that specific items are consigned, our feature makes it easy to do so.
Purchasing Consigned Items
Make payments for consigned items when you’re ready. RMPro allows you to start purchasing by simply flagging consigned items as purchased.
In the Purchase Consigned Items screen, see the color-coded list of vendors with consigned items: Black for vendors whose consigned items have been sold and are ready for purchase, and Blue for vendors whose consigned items are not sold yet, and are still in-house.
Purchase Consigned and Vendor Invoices
Managing inventory can be a complex process, especially when dealing with consignments. But with our streamlined system, purchasing consigned items and creating vendor invoices has never been easier.
RMPro Purchase Consigned is designed to work hand in hand with vendor invoices- whenever you do one, you automatically do the other, too. With just a few clicks, you can purchase consigned items and create vendor invoices, giving you more time to focus on other important aspects of your business.
While for all purchased inventory, you simply need to create a normal vendor invoice, you will need to both purchase the consigned items and create a vendor invoice if any of the items on a purchase order are consigned from the vendor.
Whenever you create a vendor invoice and add consigned items to it, the system will automatically purchase those items. Similarly, if you purchase consigned items, the system will automatically create a vendor invoice for them.
With RMPro, you don’t have to worry about missing a payment or losing track of your consigned inventory.
When you sell an item that you have consigned from your vendor, you become obligated to pay your vendor for that item. However, it’s easy to forget to let your vendor know about the sale, which can cause problems down the line.
That’s why RMPro has an alert system that shows up on your home screen. The alert reads, “Vendor having over $X sold consignment.” This alert lets you know that you have sold something from a consigned inventory, and now you need to make a payment to your vendor. You can click on the alert to see the details of the sale and make the necessary payment to your vendor.
With RMPro, you can rest assured that you won’t forget to pay your vendors for consigned inventory in a timely manner.