Definition: The selling of another company's products through a distribution
system of racks in a variety of stores that are serviced by the
rack jobber
In a typical rack-jobbing business opportunity, the agent or
buyer enters into an agreement with the parent company to market
their goods to various stores by means of strategically-located
store racks.
Under the agreement, the parent company obtains a number of
locations in which it places racks on a consignment basis. It's up
to the agent to maintain the inventory, move the merchandise around
to attract the customer, and do the bookkeeping. The agent presents
the store manager with a copy of the inventory control sheet, which
indicates how much merchandise was sold, and then the distributor
is paid by the store or location that has the rack, less the
store's commission.