Consigning
Consigning refers to the act of transferring goods or property to another person or entity, typically for sale or safekeeping.
It implies entrusting something valuable with someone else for a specific purpose. This process often involves a contractual agreement outlining the terms of the transaction, including the responsibilities of both the consigner and the consignee.
The goods remain the property of the consigner until sold, and the consignee receives a commission on the sale.
This is a common practice in various industries, including art, fashion, and retail, offering a means of expanding market reach and reducing upfront inventory costs for the seller.
Consigning meaning with examples
- The artist decided to start consigning her paintings to a local gallery, hoping to reach a wider audience and gain exposure. She carefully selected the gallery, ensuring it aligned with her artistic vision and had a reputation for representing talented artists. The agreement outlined the commission structure, insurance responsibilities, and the duration of the consignment period, allowing her to focus on creating new work.
- Before the store closed down, the business owner chose to begin consigning some of his excess inventory to a wholesale distributor, hoping to recover some of the value before the liquidation. The distributor would handle the storage, marketing, and sale of the goods, reducing the owner’s remaining financial risk. The consigning arrangement provided a practical solution to minimize losses during the final phase of the business.
- After inheriting her grandmother's vintage clothing collection, she explored the option of consigning the items to a specialized boutique. She carefully researched the market and determined the value of each piece, and she drafted a consignment agreement. This would enable the clothing to find a new home while also providing her with a financial return on the sale. This was a preferable approach than the auction route.
- The car dealership, in a bid to boost used-car sales, offered customers the option of consigning their vehicles. By taking on the consignment, the dealership provided a convenient service, managing the listing, marketing, and negotiation process on the seller’s behalf. This helped facilitate sales, offering sellers an opportunity to get a fair price. And enabled the business to boost sales.