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'{{unreferenced|date=May 2008}} {{Admiralty law}} '''Consignment''' is 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 [[sales|sale]] in a store (i.e. a '''consignment shop'''). To consign means to send and therefore consignment means sending goods to another person. In case of consignment goods are sent to the agent for the purpose of sale. The ownership of these goods remains with the sender. The agent sells the goods on behalf of the sender, according to his instructions. The sender of goods is known as consignor and the agent is known as the consignee Features of consignment are: #The relation between the two parties is that of [[consignor]] and [[consignee]] 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 [[French language|Fr.]] ''consigner'' "to hand over or transmit", originally from [[Latin language|Lat.]] ''consignare'' "to affix a seal," as was done with official documents just before being sent. ==Second-hand shops== "Consignment shop" is an [[United States|American]] term for those [[second-hand shop]]s that sells [[used good]]s for owners (consignors), typically at a lower cost than new. Not all second hand stores are consignment shops. In Consignment shops, 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 [[antique]]s, [[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 shop|charity]] or [[thrift shop]]s, 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 shop]]s, 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 Agency|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. == See also == * [[Scan-based trading]] ==Further reading== * {{cite book|author=Nissanoff, Daniel|year=2006|title=FutureShop: How the New Auction Culture Will Revolutionize the Way We Buy, Sell and Get the Things We Really Want|publisher=The Penguin Press|isbn=1-59420-077-7 }} (Hardcover, 246 pages) [[Category:Retailing]] [[Category:Supply chain management]] [[bg:Консигнация]] [[de:Konsignation]] [[fr:Consignation]] [[he:מכר מותנה]] [[nl:Verkoopwinkel]] [[pt:Consignação]] [[ru:Консигнация]] [[fi:Konsignaatio]] [[pl:Skład konsygnacyjny]] [[sv:Konsignationslager]]'