What is a consignor?

Consignors are individuals or businesses that send goods to another party, known as the consignee, for the purpose of selling those items. The consignor retains ownership of the goods until they are sold, at which point they receive payment, often minus a commission or fee. Consignment is commonly used in industries like retail, art, and shipping. This arrangement allows consignors to reach new markets without directly selling their own products, while minimizing upfront risk. The consignee, in turn, benefits by offering more products without the need to purchase inventory outright.