Consignment sales is a sales model in which the supplier delivers products to the seller without transferring ownership, and payment is made as the products are sold. This approach is widely used in retail and distribution sectors to reduce stock risk and optimize cash flow.

Through a consignment system, the seller does not need to purchase the products upfront, while the supplier can monitor sales performance and adjust stock levels according to demand. This method provides cost advantages, flexibility, and risk management for both the supplier and the seller.