A Consignment Inventory Agreement is an arrangement between two parties where one party (the consignor) supplies products and the other party (the consignee) agrees to place and sell those products in their store. Under this agreement, the consignee agrees to accept responsibility for the care and upkeep of the goods and will pay the consignor a percentage of the sale price upon completion of the sale. This arrangement allows retailers to carry inventory without having to purchase it upfront, offering them greater flexibility in managing their finances.