Consignment is the act of consigning, which is placing a person or thing in the hand of another, but retaining ownership until the goods are sold or person is transferred. This may be done for shipping, transfer of prisoners, or for sale in a store (i.e. a consignment shop).
Features of consignment are:
- The relation between the two parties is that of consignor and consignee and not that of buyer and seller
- The consignor is entitled to receive all the expenses in connection with consignment
- The consignee is not responsible for damage of goods during transport or any other procedure.
- Goods are sold at the risk of consignor. The profit or loss belongs to consignor only. Procedure A consignor will bring their second-hand clothes in to be reviewed. After being looked at, a "yes" pile will be made. These are the clothes that will be acceptable for selling in the store. These items are generally in perfect condition and lightly used without any stains/damages/defects. The clothes will be priced at a fraction of their retail price (usually 1/3 to 1/4 of what they originally sold for). When a consignor's item(s) sell, they will make a percentage of the sold price so that the store and the consignor make a profit. Once their clothes sell the consignor is able to receive their profit. Policies differ amongst stores but the concept remains the same. There are also laws against consigning fake designer pieces.Consignment differs from "selling-outright" where a seller brings their items in and receives immediate payment on review.
