Consignment

Consignment is the act of consigning, which is placing a person or thing in the hand of another, but retaining ownership until the goods are sold or person is transferred. This may be done for shipping, transfer of prisoners, or for sale in a store (e.g. a Consignment shop). In the context of sale it is usually understood that the consignee (the party to which goods are sent) pays the consignor (the party by which the goods are consigned) only after the sale, from its proceeds.

Consignment shops

Consignment shops are second-hand stores that offer used goods at a lower price than new. The dealer pays the seller upon sale of the goods. Merchandise often sold through consignment shops include antiques, athletic equipment, automobiles, books, clothing (especially children's, maternity, and wedding clothing which are often not worn out), furniture, music, musical instruments, tools, and toys. EBay drop off stores often use the consignment model of selling.

Consignment shops differ from charity or thrift shops in that the original owner retains some of the revenue from the sale, rather than donating it to the charity. They differ from pawnbrokers, which acquire the good from the original owner in exchange for money or a loan of money.

Examples are http://www.dropshop.de (Germany), http://www.auctioning4u.co.uk (United Kingdom), http://www.auctiondrop.com and http://www.portero.com (both US).

Etymology

CONSIGNMENT (from consign, Fr. consigner, Lat. consignare, to affix a signum, seal; whence, in Late Lat., to hand over, transmit)

Further reading

• Nissanoff, Daniel (2006). FutureShop: How the New Auction Culture Will Revolutionize the Way We Buy, Sell and Get the Things We Really Want. The Penguin Press. ISBN 1-594-20077-7. (Hardcover, 246 pages)

Reference

• Black's Law Dictionary

Web resources

• Notes + Practice Problems to Learn consignment accounting at "FutureAccountant.com"