What is the term for products given to an agent for sale, with payment due after the sale?

The term "consignment" refers to a business arrangement where products are provided to an agent or retailer for sale, and the payment for those products is made only after they are sold. This practice allows sellers to maintain ownership of the goods until a sale occurs, reducing financial risk. The agent or retailer typically earns a commission or a percentage of the sale, which incentivizes them to sell the products effectively.

In contrast, direct sale involves the producer selling their products directly to consumers, generally requiring payment upfront. Wholesale refers to bulk purchasing by resellers, usually with payment made before the products reach retail outlets. Retail typically involves selling products directly to consumers from a store, where the retailer has already paid for the goods. Each of these terms describes different sales arrangements, but consignment uniquely emphasizes the payment structure based on the sale's success.