IT Consignment

What is IT Consignment?

IT consignment is a business arrangement where a provider of IT equipment or products agrees to supply them to a reseller, who agrees to sell them on a retail level to their clients. In this arrangement, the provider retains ownership of the IT equipment or products until they are sold by the reseller.

Under an IT consignment agreement, the provider typically supplies the reseller with a range of IT equipment or products, such as computers, servers, networking equipment, software, and peripherals. The reseller then sells these products to their customers and pays the provider a pre-negotiated price for each item sold. The provider is responsible for shipping the IT equipment or products to the reseller’s location and handling any administrative tasks associated with managing our personal inventory, such as tracking sales and returns to and from the provider to the reseller.

Reduced upfront costs and risk

With a consignment program, businesses don’t have to pay for IT equipment or products upfront, which can help conserve cash flow. Since businesses only pay for the IT equipment or products they sell, they can reduce the risk of overstocking, which can lead to excess inventory and lost revenue.

Improved cash flow

By only paying for the IT equipment or products they sell, businesses can improve their cash flow and invest in other areas of their business.

Reduced obsolescence risk

IT equipment and products can quickly become obsolete, which can result in lost revenue and wasted resources. Consignment programs can help businesses reduce the risk of obsolescence by ensuring they always have the latest technology available to offer their customers.