Consignment is a business model where a retailer agrees to sell goods on behalf of a supplier, with payment only made once the goods are sold.

This model can be beneficial for small businesses as it allows them to expand their reach without the financial risk of buying inventory upfront.

Consignment can also help businesses build relationships with retailers and gain exposure to new customers.

Suppliers can benefit from consignment by reducing their inventory costs and gaining access to new markets.

However, consignment does come with some risks, such as the possibility of damaged or unsold goods.

To mitigate these risks, it is important for both parties to have a clear agreement in place and to communicate effectively.

Overall, consignment can be a valuable tool for small businesses looking to grow and expand their reach.