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James Shores, future chief marketing officer at Fishbowl, discusses consignment in this Whiteboard Wednesday tutorial. Consignment involves a supplier placing goods in another store without them being purchased, with most of the risk falling on the supplier. However, there are benefits to consignment if managed properly. For example, a supplier may have basic products, a new product line to test out, and a high-end expensive line. Consignment can help suppliers introduce new products and expand into new markets.
