Consignment Software

Consignment Software:

Consignment Software is a software that is designed for shops selling on consignment. Automated POS, inventory control, customer tracking, barcode label/tag printing, printable reports, store operations, merchandising, payment solutions,planning and business intelligence and marketing are some of the features included in Consignment Software.
Specialized point of sale and inventory management solutions are provided by for Consignment Software consignment shops, antique malls and collectible stores. Consignment is an arrangement in which goods are sell by a third party known as consignee. The consignee procures items for sale but uses consignor facilities to display the wares and handle the sales. A retail merchandiser is the consignor for goods supplied by the consignee. The consignee is paid after the sale by the consignor and keeps a percentage of the profit either as a flat rate fee or commission. It can be a low commission and less time investment way of selling items or services through consignment software. It is the best option to sell your goods if you don't have a physical store or online marketplace.
As the software provides a marketplace to exhibit and sell the third party wares, it removes the necessity for an individual to create their own website, attract customers, and set up payment processes. Consignment fees are a small price to pay if the seller do not have the time or the desire to advertise their product for sale, to conduct pricing research, and to endure the tasks associated with selling an item.

Benefits of consignment software:

Benefits of consignment selling for both supplier and retailer include:

Save on Inventory Costs:

The consignee does not have to pay the consignor until the product is sold, which eliminate the need of investment for the retailer. As the consignor does not have to buy inventory before selling it, he can avoids the overhead costs of managing inventory, such as storage, insurance and transportation. He collects revenue before paying for the product as the consignor does not have to pay for consigned goods until after the sale. So, there is cash flow on the part of the consignor because he can conserve its funds and reduces the need to invest money to pay for its inventory, thereby saving interest expense.

Convenience:

Time-saving conveniences is offered for consignor and consignee. It avoids lag times between selling stock and new orders arriving. To keep the shop restocked, inventory is usually replaced as soon as it sells. As the consignee will promptly refill sold items, a consignor does not need to spend time reordering stock. Most of the time, the wares are physically arranged by the consignees for display in the consignor’s store, that saves the store owner time and labor costs.

Reduced risk for new products or sales channels:

There is a reduces risk for new products or sales channels to introduce it for the customer without major financial loss. A new item or an established product in a new sales channel can be introduced by the consignor before investing heavily in it. This will give an idea about which product sells best in which area before investing more capital into it.

Help Build better relationship between consignor and consignee:

Both consignor and consignee will be able to judge what levels of inventory are turned over in particular time periods in which area after introducing a new product or initially selling on consignment. Based on this research, the consignor and consignee establish a more traditional bulk order system in realistic order quantities. Ordering and selling the right amount of product establishes a stronger relationship between both consignor and consignee.

Managing consignment stock is easy:

Managing consignment stock becomes easy with Consignment Software as it can track the exact stock that is at the consigned location. The constant movement of consigned stock can be tracked and manged by this software. Errors in reporting using spreadsheet can lead to lost stock and lost profits which can be avoided by using Consignment Software.