Consignments

Consignments refer to the act of entrusting goods or merchandise to a carrier or agent for sale, transfer, or storage. It also refers to the items or quantities of goods that are consigned, i.e., delivered under a consignment agreement. The consignor (the owner) retains ownership of the goods until they are sold by the consignee (the agent). This arrangement allows businesses to place products in new markets or test consumer interest without bearing the upfront costs of outright purchase and warehousing. The consignee typically receives a commission on the sale of the goods. This is a common practice in art galleries, retail shops, and warehousing businesses. The details of a consignment are typically outlined in a consignment agreement that specifies the terms of the arrangement including payment and the agreed time frame.

Consignments meaning with examples

• The art gallery received several valuable paintings as consignments from a renowned local artist. These pieces were displayed prominently, with the gallery taking a percentage of the sale price. This arrangement allowed the artist to reach a broader audience while the gallery benefited from showcasing unique artwork, driving foot traffic and sales.
• After careful analysis of the market, the online retailer decided to expand their product lines. To minimise initial investment they worked with several suppliers. The suppliers sent consignments of furniture to a central warehouse. This allowed the retailer to gauge sales and market interest with minimum financial risk.
• The antique shop depended heavily on consignments. Several antique dealers regularly sent carefully curated collections of clocks, ceramics, and furniture on a monthly basis to the shop. This stream of consignments kept inventory fresh, attracting both loyal and new customers.
• The clothing boutique thrived on consignments of designer dresses and accessories. These items were often rare, unique, and highly sought after. The consignments allowed the shop to offer exclusive products without carrying the full financial risk of purchasing inventory upfront.
• The international shipping company specialised in handling large consignments of raw materials and finished goods. Their logistics expertise ensured smooth passage, customs clearance, and timely delivery, maintaining strict adherence to the terms and conditions of sale or consignment agreement.
• The online platform enabled individuals to sell used items through consignments. Sellers could easily list their items, and the platform facilitated the transaction while acting as the intermediary ensuring fair prices.
• A logistics company managed the weekly consignments of fresh produce from local farms to various grocery stores across the city. Strict time constraints and temperature control are key to ensuring the quality of the perishable items. This helped the grocery stores meet demand for fresh produce, leading to customer satisfaction.
• The storage facility accepted consignments from numerous businesses and individuals, offering secure warehousing and inventory management services. These services helped businesses to safely store their products, and individuals keep their valuables safe.