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I have heard that in Torchlight II it is possible to load your companion pet up with items you wish to sell and send her/him back to town to vendor the items in their inventory.

How do you achieve this?

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Yes it is possible, simply open up the Pet Panel (default of P) and move items from your inventory into this screen;

Pet Panel

It is also possible to get your pet to purchase consumable items such as scrolls and potions by clicking on the 'Shopping List' option on the tabs at the bottom (first from the right);

Pet Panel menu

When you're ready to send your pet back to town, click the little green house icon in the bottom right of the screen. This will change the Pet Panel screen to show how much time is left before your pet returns;

time until pet returns

This is also detailed on your pet's health bars when the Pet Panel is closed;

pet health indicator

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