CONSIGNMENT SALE Meaning and
Definition
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A consignment sale refers to a business transaction where a product or inventory is handed over from one party, known as the consignor, to another party, known as the consignee, for the purpose of selling it on behalf of the consignor. In a consignment sale, the consignor retains the ownership of the goods until they are sold, transferred, or no longer wanted by the consignee. This arrangement is typically established through a consignment agreement, which outlines the terms, conditions, and responsibilities of both parties.
Under a consignment sale, the consignee operates as an agent for the consignor, taking possession of the goods and showcasing them in their store or on their online platform. The consignee is responsible for marketing, promoting, and selling the items, often at a predetermined price or commission. Once a sale is made, the consignee deducts their agreed-upon fee or commission from the sale proceeds and then remits the remaining amount, along with any necessary sales reports, to the consignor.
Consignment sales are particularly common in industries involving fashion, antiques, artwork, and collectibles. They provide consignors with an opportunity to reach a wider customer base without the need for their own physical store or marketing efforts. Additionally, they allow consignees to diversify their inventory and potentially increase their sales by offering unique and varied products. Ultimately, consignment sales serve as a mutually beneficial arrangement, as they enable consignors to earn revenue from their goods while giving consignees access to a broader range of products to offer customers.
Common Misspellings for CONSIGNMENT SALE
- xonsignment sale
- vonsignment sale
- fonsignment sale
- donsignment sale
- cinsignment sale
- cknsignment sale
- clnsignment sale
- cpnsignment sale
- c0nsignment sale
- c9nsignment sale
- cobsignment sale
- comsignment sale
- cojsignment sale
- cohsignment sale
- conaignment sale
- conzignment sale
- conxignment sale
- condignment sale
- coneignment sale
- conwignment sale
Etymology of CONSIGNMENT SALE
The word "consignment" derives from the Latin word "consignare", which means "to seal up or to hand over". In the context of commerce, a consignment is an arrangement in which goods are entrusted to a third party to sell on behalf of the owner. The word "sale" originates from the Old English word "sǣlan", which means "to give, deliver, or sell". Therefore, the term "consignment sale" refers to the act of selling goods that have been entrusted to a seller by their owner.
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