Apparel Software for Consignment: How AIMS360 Powers Shop-in-Shop Success

Consignment inventory has become an essential strategy for ambitious apparel brands seeking growth, risk reduction, and retail expansion. Nowhere is this more powerful than in the shop-in-shop (SIS) retail model, where brands gain premium placement inside major department stores and boutiques—but only pay for goods that actually sell. However, the real ROI comes when your consignment program runs on advanced apparel ERP and fashion software designed for every modern consignment use case.

What Is Consignment Selling?

Consignment selling is a flexible retail model where a brand or supplier (consignor) places goods with a retailer or shop-in-shop partner (consignee), but retains ownership of the inventory until each item sells. The retailer only pays for the products that are sold to the end customer. This approach reduces risk for both sides: retailers don’t tie up cash in unsold stock, while brands gain expanded reach and control over merchandising, pricing, and inventory rotation.

What Is Consignment Inventory?

Consignment inventory refers to merchandise that is physically located with a retailer, shop-in-shop store, or even a marketplace seller, but remains the property of the brand or supplier until it is sold. Unsold goods can be returned, reallocated to different locations, or restocked as needed. With the right apparel software or fashion software, brands and retailers can track consignment inventory in real time, manage automated restocks, and optimize sell-through across all channels.

What Is a Shop-in-Shop Store?

A shop-in-shop (SIS) is a branded retail area operated by a vendor or fashion brand inside a larger retailer, such as a department store or specialty retailer. In these SIS environments, apparel brands often leverage consignment inventory—delivering their goods to the retailer, but only getting paid for items that actually sell. This model allows brands to test new markets, keep full control of their merchandising, and expand quickly with less risk.

Why Apparel Brands Use Consignment in Shop-in-Shop Stores

• No Upfront Purchase Required: Retailers don’t have to buy inventory before it sells, lowering their risk and increasing the chances they’ll dedicate premium floor space to your brand.
• Premium Placement: Brands can secure high-visibility spots in major stores, increasing traffic and credibility.
• Location-Based Tracking: Sales and inventory are tracked by individual SIS or department store location—ensuring precise management and easy replenishment.
• Returns & Reallocation: Unsold or slow-moving items can be returned, reallocated to new locations, or restocked based on real-time demand.
• Cash Flow Friendly: Consignment enables brands to expand into new markets and channels without the heavy upfront investment or inventory risk.

Why Shop-in-Shop Consignment Needs Modern Apparel Software

Traditional consignment tracking—or spreadsheets and manual processes—can’t keep up with the complexity and speed of today’s fashion industry. AIMS360’s cloud-based apparel software and fashion software are built for the unique challenges of SIS consignment—combining real-time inventory management, barcode/RFID scanning, automated transfers, cycle counts, and seamless omnichannel integration for ultimate efficiency and accuracy.

How AIMS360 Apparel Software Simplifies Consignment

Managing consignment sales across multiple shop-in-shop locations can be operationally complex. AIMS360 removes the friction with features built specifically for apparel brands:

• Inventory by Location: Real-time tracking of inventory by SIS, department store, pop-up, or warehouse—know exactly what’s available, where, and when to restock.
• Automated Reorder Points & Restocks: Set smart reorder thresholds for each SIS location. AIMS360 automatically triggers transfers and replenishments to keep top styles in stock, maximizing sales and minimizing lost opportunities.
• Barcode/RFID Transfers & Digital Confirmation: Every inventory transfer is scanned, tracked, and confirmed by both the brand and retail partner, creating a bulletproof audit trail and instant visibility.
• Scan-to-Pay & Daily Cycle Counts: Enable store staff or partners to scan inventory daily. AIMS360 reconciles sales, flags discrepancies, and generates precise consignment invoices based on real, verified data—eliminating disputes and shrinkage.
• Returns & Reallocation: Move unsold goods to higher-performing locations or return to your warehouse, all digitally managed with zero manual spreadsheets.
• Omnichannel Reporting Tools: Unified analytics show sell-through, inventory movement, and revenue across all SIS and retail partners, helping brands optimize product mix and restocking.
• Automated Settlement & Audit Trail: AIMS360 manages returns, contract expiries, and settlements with complete transparency—keeping accounting clean and audit-proof.

Shop-in-Shop Consignment Workflow with AIMS360

1. Contract & Setup: Automate and enforce contract terms (roles, SLAs, insurance, payment, returns) for each shop-in-shop partner.
2. Intelligent Inventory Allocation & Transfers: Allocate and ship inventory using WMS, with automated restocks and location-based triggers.
3. Transfer & Partner Confirmation: All shipments are tracked with digital packing lists, barcode/RFID scanning, and instant partner confirmation—ensuring traceability and compliance.
4. Sales Sync & Daily Cycle Counts: Capture omnichannel sales (POS, online, marketplaces), reconcile with cycle counts, and provide real-time reporting for both brand and partner.
5. Automated Invoicing & Settlement: Generate invoices for sold inventory, manage returns and restocks, and provide transparent, audit-ready accounting—all in the cloud.

AIMS360 in Action: Shop-in-Shop with Bloomingdale’s

Several of our fashion brand clients run successful shop-in-shop consignment programs inside Bloomingdale’s.

Since 2021, AIMS360 has helped these brands:

• Track and restock inventory by individual store
• Automatically invoice only for sold items (scan-to-pay)
• Optimize product assortment by analyzing real-time sell-through
• Manage returns and restocks with ease, even across multiple Bloomingdale’s locations

By leveraging AIMS360, these brands have been able to expand into new stores, increase sales, and keep operations lean and accounting accurate—while maintaining flexibility and control over their inventory.

Why Leading Brands Trust AIMS360 for Shop-in-Shop Consignment

• Cloud-based, always-on: Real-time data anywhere, from any device.
• Mobile barcode & RFID: Lightning-fast cycle counts and transfer verification.
• Contract & compliance: Automated enforcement of SLAs, insurance, and custom consignment agreements.
• Audit-proof: Every transfer, count, and sale is digitally logged for easy reconciliation and audit defense.
• Seamless collaboration: Brands and retailers see the same data—no more manual spreadsheets, delays, or disputes.

Thinking of running consignment in a shop-in-shop setup?

Let AIMS360 handle the backend, so you can focus on growth, merchandising, and customer experience.

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FAQs About Apparel ERP, Consignment, and Shop-in-Shop Inventory Management

What is consignment inventory in apparel retail?

Consignment inventory in apparel retail refers to goods provided to a retailer by a fashion brand without requiring an upfront purchase. The retailer only pays for the items that sell, and unsold merchandise can be returned to the brand. Using an apparel ERP like AIMS360 helps brands track these goods accurately, manage multiple retail channels, and avoid stockouts or overages.

What is consignment inventory management in apparel ERP and fashion software?

Consignment inventory management in apparel ERP or fashion software allows brands to centrally track, control, and automate goods placed at retailers or shop-in-shop locations, where payment only occurs after a sale. Modern apparel software like AIMS360 streamlines the entire consignment lifecycle, including inventory, invoicing, returns, and reporting.

How does consignment work in a shop-in-shop environment?

In a shop-in-shop (SIS) setup, a brand operates its own retail space within a larger retailer, such as a department store. The brand supplies inventory on consignment—meaning the retailer pays only for what sells. Fashion ERP software like AIMS360 automates invoicing and inventory tracking, making SIS programs more efficient and scalable for both brands and retailers.

How can apparel ERP software help manage consignment sales?

An apparel ERP system like AIMS360 is built specifically for the fashion industry. It manages consignment sales by tracking inventory by location, automating invoicing based on sell-through, processing returns, and providing detailed reporting—all in real time. This eliminates manual spreadsheets, reduces errors, and enables brands to scale retail consignment with confidence.

Can AIMS360 manage multiple shop-in-shop locations?

Yes. AIMS360 is fashion ERP software that supports tracking and managing consignment inventory across multiple shop-in-shop or department store locations. You can monitor performance by location, rep, or style, generate location-specific consignment invoices, and move or return inventory as needed.

How does apparel ERP software support shop-in-shop consignment programs?

Apparel ERP software and fashion ERP solutions like AIMS360 enable brands to run shop-in-shop consignment programs by automating inventory tracking, sales reporting, and consignment invoicing for every shop-in-shop location. This supports growth across department stores, boutiques, and premium retailers, all within a single platform.

What’s the benefit of using fashion software for consignment invoicing?

Using fashion software for consignment invoicing ensures brands invoice only for goods that are sold, reducing manual errors and saving time. AIMS360 automates this process using real sales data from each store, streamlining finance and accounting workflows, improving cash flow, and increasing transparency with retail partners.

Is consignment a good fit for new fashion brands?

Absolutely. For emerging or growing fashion brands, consignment offers a low-risk way to enter premium retailers and department stores without requiring retailers to purchase inventory upfront. Fashion ERP systems like AIMS360 make it easier to manage consignment, scale operations, and track performance across multiple retail channels.

What types of retailers use consignment with apparel brands?

Retailers like Bloomingdale’s, Nordstrom, and multi-brand boutiques often work with apparel brands on consignment terms, especially in shop-in-shop formats. These partnerships are most effective when managed with dedicated apparel software that can track inventory, automate consignment invoicing, and manage returns.

What does giving goods on consignment mean?

Giving goods on consignment means a brand delivers inventory to a retailer without requiring payment upfront. The retailer only pays after the merchandise is sold to the end customer. Using an apparel ERP or fashion ERP solution helps brands track inventory status—shipped, sold, or returned—and ensures accurate and timely invoicing.

What is the difference between consignment and wholesale in apparel retail?

Consignment means the brand retains ownership of inventory at the retailer or shop-in-shop location until it sells; payment is only collected when a sale occurs. In wholesale, the retailer purchases inventory upfront and assumes all risk and responsibility for unsold goods. Apparel ERP and fashion software can manage both business models, but offer specialized tools for consignment sales, returns, and reconciliation.

Who owns the inventory in a consignment agreement?

In a consignment agreement, the apparel brand retains ownership of the inventory until it is sold by the retailer. Using fashion ERP tools and apparel software, brands can keep accurate stock counts across all consignment locations, manage returns, and prevent loss or confusion.

What are the risks of consignment inventory?

Consignment carries risks such as delayed payments, lost or damaged merchandise, inventory shrinkage, and inaccurate reporting. Implementing fashion software like AIMS360 ensures better control over the consignment process with real-time visibility, automated data capture, secure tracking, and streamlined logistics.

How does consignment impact cash flow for fashion brands?

Since brands are only paid when goods sell, consignment can delay incoming revenue compared to wholesale. However, with the right apparel ERP, brands can confidently scale into more retail locations while maintaining a clear view of performance and cash flow, minimizing overproduction and supporting inventory optimization.

What are the retail operations benefits of using fashion ERP for consignment and shop-in-shop programs?

Fashion ERP provides complete inventory movement visibility, automates retail consignment tasks, supports real-time analytics for shop-in-shop programs, and makes audit-ready reporting easy. Apparel ERP software like AIMS360 allows brands to monitor inventory by style, color, and location—reducing risk, improving accuracy, and optimizing retail operations.

How does consignment inventory management with apparel software reduce risk for fashion brands?

Consignment inventory management using apparel ERP and fashion software reduces risks such as delayed payments, lost inventory, and manual reporting errors. Automated workflows, secure tracking, and transparent reconciliation help protect profitability and ensure audit readiness for both brands and retailers.

How does consignment invoicing work in fashion ERP or apparel software?

Fashion ERP and apparel software automate consignment invoicing by tracking sales at each shop-in-shop or retail location and generating invoices only for goods sold. This reduces manual work, increases accuracy, and ensures brands and retailers maintain transparent and trustworthy consignment partnerships.

How do apparel brands use consignment inventory management systems to scale shop-in-shop retail?

Consignment inventory management systems, such as fashion ERP and apparel software, help brands track goods at every shop-in-shop location, automate returns, generate audit-ready reports, and gain a unified view of their retail consignment operations. This supports both small and enterprise-level fashion businesses as they grow.

Can apparel ERP systems like AIMS360 support consignment and shop-in-shop retail at scale?

Yes. Apparel ERP systems like AIMS360 are designed for multi-channel, modern fashion brands and can manage consignment inventory, shop-in-shop programs, and wholesale sales all in one solution. This enables brands to confidently expand into department stores, premium retailers, and specialty shops while keeping backend processes streamlined.

Do department stores and premium retailers prefer shop-in-shop consignment or wholesale?

Department stores and premium retailers often prefer shop-in-shop consignment for new, emerging, or fast-moving brands because it reduces their risk and increases merchandise variety for shoppers. Apparel ERP and fashion software make it easy to offer and manage both consignment and wholesale programs—allowing brands to adapt as their retail strategy evolves.