Consignor

A consignor is an individual or business entity that sends goods or property to another party (the consignee) for sale or management, while retaining ownership of the items. This arrangement allows the consignor to display and offer their goods in a different location without directly handling sales or storage. The consignor's compensation usually comes from a percentage of the sales price agreed upon in a consignment agreement. The consignor retains ownership of the goods until they are sold. If goods aren't sold by an agreed-upon date, the consignor is typically responsible for retrieving them or making alternative arrangements. Legal protection is often critical for both consignor and consignee to ensure ownership rights are understood. The value of the sale is split as per a contractual agreement between the consignor and consignee.

Consignor meaning with examples

• The artist, as the consignor, sent her paintings to the gallery. The gallery acted as the consignee, displaying the art. The artist retained ownership until a piece was sold. Their agreement outlined a commission split. This gave the artist exposure and required the gallery to promote the pieces, which allowed the artist to generate income without additional overhead.
• The antique dealer, functioning as the consignor, placed a collection of vintage furniture with a high-end consignment shop. The dealer, who owns the furniture, was able to showcase the furniture in a well-known store to maximize the chances of a quick sale. The shop handled the logistics and sales. The consignor expected a return based on the eventual sales.
• After closing his brick-and-mortar store, the small business owner, acting as the consignor, shipped the remaining inventory to an online consignment platform. This arrangement meant he still retained ownership of the items until they were sold, allowing him to recover some costs. His contract with the platform specified payment terms.
• A homeowner, operating as the consignor, entrusted a valuable collection of china to a specialty consignment store. The consignee handled the storage, marketing, and sale of the china. This enabled the homeowner to avoid the hassle of private sales. The contract stipulated the agreed percentage after a sale was generated, once the china sold.
• The jewelry maker, being the consignor, gave several of her pieces to a boutique for sale. The boutique owner was the consignee. The consignor had previously struggled with direct sales. The arrangement allowed her jewelry to reach a wider audience without taking on the complexities of running her own retail space. The payout was a percentage of each sale.