Consignment
Encyclopedia
Consignment the act of consigning, which is placing any material 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, to auction, or for sale
in a store (i.e. a consignment shop).
Features of consignment are:
The word consignment comes from Fr.
consigner "to hand over or transmit", originally from Lat. consignare "to affix a seal," as was done with official documents just before being sent.
term for second-hand
stores that offer used goods, typically at a lower cost than new. In the context of sale, it is usually understood that the consignee
(the seller) pays the consignor
(the person who owns the item) a portion of the proceeds from the sale. Payment is not made until and unless the item sells. The consignor retains title to the item and can end the arrangement at any time by requesting its return. A specified time is commonly arranged after which, if the item does not sell, the owner can reclaim it (or, if not reclaimed within a period, the seller can dispose of the item at his or her discretion).
Merchandise often sold through consignment shops includes antiques, athletic equipment, automobile
s, books, clothing
(especially children's, maternity, and wedding clothing which are often not worn out), furniture
, firearms, music
, musical instrument
s, tool
s, and toy
s. eBay
drop-off stores often use the consignment model of selling. Art galleries, as well, often operate as consignees of the artist.
The consignment process can be further facilitated by the use of VMI (vendor managed inventory
) and CMI (customer managed inventory) applications. VMI is a business model that allows the vendor in a vendor/customer relationship to plan and control inventory for the customer, while CMI allows the customer in the relationship to have control of inventory.
Consignment shops differ from charity
or thrift shops, in which the original owners surrender physical possession and legal title to the item as a charitable donation, and the seller retains all proceeds from the sale. They also differ from pawn shops, in which the original owner can surrender physical possession and legal title for an immediate payment, or surrender physical possession of the item in exchange for a loan, and can only reclaim the item upon repayment of the loan with interest or else surrender legal title to the item. In the UK, the term "consignment" is not used, and consignment shops selling women's clothing are called "dress agencies". Although the other types of consignment shop exist, there is no general term for them.
There are laws against consigning fake designer pieces.
Consignment differs from "selling outright", where a seller brings items in and receives immediate payment on review.
Shipping
Shipping has multiple meanings. It can be a physical process of transporting commodities and merchandise goods and cargo, by land, air, and sea. It also can describe the movement of objects by ship.Land or "ground" shipping can be by train or by truck...
, transfer of prisoners, to auction, or for sale
Sales
A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity....
in a store (i.e. a consignment shop).
Features of consignment are:
- The relation between the two parties is that of consignorConsignorThe consignor, in a contract of carriage, is the person sending a shipment to be delivered whether by land, sea or air. Some carriers, such as national postal entities, use the term "sender" or "shipper" but in the event of a legal dispute the proper and technical term "consignor" will generally be...
and consigneeConsigneeIn a contract of carriage, the consignee is the person to whom the shipment is to be delivered to whether by land, sea or air.-A brief statement of law:...
and not that of buyer and seller - The consignor is entitled to receive all the expenses in connection with consignment
- The consignee is not responsible for damage of goods during transport or any other procedure.
- Goods are sold at the risk of consignor. The profit or loss belongs to consignor only.
The word consignment comes from Fr.
French language
French is a Romance language spoken as a first language in France, the Romandy region in Switzerland, Wallonia and Brussels in Belgium, Monaco, the regions of Quebec and Acadia in Canada, and by various communities elsewhere. Second-language speakers of French are distributed throughout many parts...
consigner "to hand over or transmit", originally from Lat. consignare "to affix a seal," as was done with official documents just before being sent.
Second-hand shops
"Consignment shop" is an American EnglishAmerican English
American English is a set of dialects of the English language used mostly in the United States. Approximately two-thirds of the world's native speakers of English live in the United States....
term for second-hand
Second-Hand
Second-Hand was a 2005 Romanian film directed by Dan Piţa.-Plot summary:The film's plot surrounds the romantic involvement of two contrasting characters: Petre , a Mafioso, and Andreea , a young violin player. The pair meet and fall in love...
stores that offer used goods, typically at a lower cost than new. In the context of sale, it is usually understood that the consignee
Consignee
In a contract of carriage, the consignee is the person to whom the shipment is to be delivered to whether by land, sea or air.-A brief statement of law:...
(the seller) pays the consignor
Consignor
The consignor, in a contract of carriage, is the person sending a shipment to be delivered whether by land, sea or air. Some carriers, such as national postal entities, use the term "sender" or "shipper" but in the event of a legal dispute the proper and technical term "consignor" will generally be...
(the person who owns the item) a portion of the proceeds from the sale. Payment is not made until and unless the item sells. The consignor retains title to the item and can end the arrangement at any time by requesting its return. A specified time is commonly arranged after which, if the item does not sell, the owner can reclaim it (or, if not reclaimed within a period, the seller can dispose of the item at his or her discretion).
Merchandise often sold through consignment shops includes antiques, athletic equipment, automobile
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...
s, books, clothing
Clothing
Clothing refers to any covering for the human body that is worn. The wearing of clothing is exclusively a human characteristic and is a feature of nearly all human societies...
(especially children's, maternity, and wedding clothing which are often not worn out), furniture
Furniture
Furniture is the mass noun for the movable objects intended to support various human activities such as seating and sleeping in beds, to hold objects at a convenient height for work using horizontal surfaces above the ground, or to store things...
, firearms, music
Music
Music is an art form whose medium is sound and silence. Its common elements are pitch , rhythm , dynamics, and the sonic qualities of timbre and texture...
, musical instrument
Musical instrument
A musical instrument is a device created or adapted for the purpose of making musical sounds. In principle, any object that produces sound can serve as a musical instrument—it is through purpose that the object becomes a musical instrument. The history of musical instruments dates back to the...
s, tool
Tool
A tool is a device that can be used to produce an item or achieve a task, but that is not consumed in the process. Informally the word is also used to describe a procedure or process with a specific purpose. Tools that are used in particular fields or activities may have different designations such...
s, and toy
Toy
A toy is any object that can be used for play. Toys are associated commonly with children and pets. Playing with toys is often thought to be an enjoyable means of training the young for life in human society. Different materials are used to make toys enjoyable and cuddly to both young and old...
s. eBay
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
drop-off stores often use the consignment model of selling. Art galleries, as well, often operate as consignees of the artist.
The consignment process can be further facilitated by the use of VMI (vendor managed inventory
Vendor Managed Inventory
Vendor-managed inventory is a family of business models in which the buyer of a product provides certain information to a supplier of that product and the supplier takes full responsibility for maintaining an agreed inventory of the material, usually at the buyer's consumption location .A...
) and CMI (customer managed inventory) applications. VMI is a business model that allows the vendor in a vendor/customer relationship to plan and control inventory for the customer, while CMI allows the customer in the relationship to have control of inventory.
Consignment shops differ from charity
Charity shop
A charity shop, thrift shop, thrift store, hospice shop , resale shop or op shop is a retail establishment run by a charitable organization to raise money.Charity shops are a type of social enterprise...
or thrift shops, in which the original owners surrender physical possession and legal title to the item as a charitable donation, and the seller retains all proceeds from the sale. They also differ from pawn shops, in which the original owner can surrender physical possession and legal title for an immediate payment, or surrender physical possession of the item in exchange for a loan, and can only reclaim the item upon repayment of the loan with interest or else surrender legal title to the item. In the UK, the term "consignment" is not used, and consignment shops selling women's clothing are called "dress agencies". Although the other types of consignment shop exist, there is no general term for them.
Procedure
A consignor brings their second-hand items in to be reviewed. After being reviewed, a "yes" pile will be made. These are the items that are acceptable for selling in the store. These items are generally in perfect condition and lightly used without any stains/damages/defects. The items will be priced at a fraction of their retail price (usually 1/3 to 1/4 of their original cost). When a consignor's item(s) sell, they make a percentage of the sold price so that the store and the consignor make a profit. Policies differ amongst stores, but the concept remains the same.There are laws against consigning fake designer pieces.
Consignment differs from "selling outright", where a seller brings items in and receives immediate payment on review.