Jan. 6 at 3:44 AM
$REAL
CEO, appears to be emphasizing direct sales because, under this model, it can recognize the full selling price as revenue—and that amount is included in **Total Revenue** on the income statement. This naturally boosts reported revenue. In contrast, consignment sales are typically reported only as the commission earned, which makes reported revenue look lower even if the same item is sold.
For many traders—especially those without an accounting background—this can make the earnings report look stronger than the underlying economics. To me, it feels like a legal way to “dress up” revenue by shifting the mix toward direct sales.
