Consignment Format is an agreement between a vendor and a business buyer in which the vendor sends their goods to be sold by the buyer without charging up-front fees. The vendor retains ownership of their product until it is purchased by a customer, at which point the vendor receives payment from the buyer. This arrangement provides the buyer with the flexibility to stock their shelves with the right products without risking large expenditures of money without knowing whether or not they’ll be able to sell them. By utilizing consignment format sales agreements, businesses are able to more accurately forecast their expenses and inventory levels, ultimately leading to increased profitability.