Consignors

Consignors are individuals or businesses who entrust goods to another party (the consignee) for sale, transfer, or other specific purposes. They retain ownership of the goods until they are sold or the agreed-upon arrangement is fulfilled. The consignor essentially acts as the owner of the merchandise while it's in the possession of the consignee. This often involves a contractual agreement outlining terms such as the selling price, commission, storage, and liability. The consignor benefits from this arrangement by reaching a broader market or minimizing storage costs, while the consignee benefits by selling goods without initially purchasing them.

Consignors meaning with examples

• The art gallery acted as a consignee, displaying the artwork. The artists, the original creators, and the consigner retained ownership until a sale was made. This consignment allowed the consigner to avoid direct selling, which would need their own business or the work of a 3rd party. The gallery handled marketing, display, and customer interactions.
• Small clothing designers often become consigner for local boutiques, providing their garments on consignment. They ship the clothes, and if sold, they will get their portion. This consignment model allows them to expand their reach without having to invest in their own retail spaces. This model helps small business.
• Antique dealers will often act as consigner, sending rare items to auction houses. The auction house manages the auction. The consigner will get the proceeds from the sale, minus the auction house's commission. This allows the consignor to reach a diverse group of potential buyers.
• Online marketplaces regularly host consignors of electronics. These consigner send in the products to be sold, and the online marketplace takes responsibility for the sales process. The consigner profits once the item is sold. The consigner may benefit from not needing a warehouse.
• Estate sales frequently involve consigner, especially regarding personal belongings. Family members will work with an estate liquidator to manage the sale of furniture and other items. The consigner receives the money from the estate sale. Estate sales offer a practical solution to selling large quantities of goods.