What Does a Consignment Mean?
Posted: Thu Feb 13, 2025 10:52 am
A game plan that implies where the ownership of a product is delegated to an approved outsider or middleman to sell is a consignment. It refers to a simple commercial agreement in which the products are delivered to a retailer or wholesaler by a seller to sell to the consumers. The comparison between the terms consignment and sale is often placed in a grey area and understanding the difference between the two is crucial. The consignor is the person who provides the goods. Hence, manufacturers and producers are the consignors. The agent who is left in charge of selling these goods is known as the consignee. The relationship between a principal and an agent is a brilliant way to determine the relationship between the two. The consignee solely operates on the consignor’s behalf. It is vital to note that the consignee is never the owner of the products designated by the consignor for sale.
When in transit, there is a good chance that the products can undergo damage or belize phone number list spoilage. Even in such situations, the consignor is the owner of the goods and the consignee is nowhere responsible for the same. The loss is completely borne by the seller. The consignee is responsible for the sales aspects based on the instructions provided by the consignor. The consignor, in return, gives the consignee a fee for his troubles and effort post the sales.
Types of Consignment
There are two types of consignments, these include:
Inward Consignments: When goods and products given by the consignor to a consignee are sold locally or domestically, it is known as an inward consignment.
Outward Consignment: When a consignor sends goods from one country to another for sale via a consignee, the consignment is known to be outward.
When in transit, there is a good chance that the products can undergo damage or belize phone number list spoilage. Even in such situations, the consignor is the owner of the goods and the consignee is nowhere responsible for the same. The loss is completely borne by the seller. The consignee is responsible for the sales aspects based on the instructions provided by the consignor. The consignor, in return, gives the consignee a fee for his troubles and effort post the sales.
Types of Consignment
There are two types of consignments, these include:
Inward Consignments: When goods and products given by the consignor to a consignee are sold locally or domestically, it is known as an inward consignment.
Outward Consignment: When a consignor sends goods from one country to another for sale via a consignee, the consignment is known to be outward.