Consigneren

Consigneren, or selling on consignment, is a commercial arrangement in which the owner of goods (the consignor) entrusts those goods to another party (the consignee) to offer for sale on behalf of the owner. Ownership typically remains with the consignor until a sale occurs; upon sale, the consignee retains a pre-agreed commission and remits the balance to the consignor. If the goods remain unsold, they can usually be returned to the consignor or disposed of according to the contract.

Key terms include the list of items, pricing (either fixed by the consignor or set as a recommended retail price by the consignee), duration of the arrangement, reporting and accounting, storage and insurance responsibilities, and risk allocation. Payment terms specify when the consignor is paid and how returns, refunds, and damaged goods are handled. Many consignments are governed by a written contract, which may specify minimum sales deadlines and remedies for breach.

Typical contexts for consigneren include art galleries, antiques shops, fashion boutiques, bookstores, and other retailers that benefit from a dealer's sales channel without upfront inventory purchases. Benefits for consignors include expanded reach and cash flow preservation, while risks include delayed payment, potential for unsold stock, and dependence on the consignee's selling performance. For consignees, commissions provide revenue without purchasing inventory, but they take on storage, insurance, and resale risk for the items while they are in their possession.

Terminology: the arrangement is commonly referred to as selling on consignment or consignation; in Dutch-speaking contexts the term consignatie or consignatieverkoop is used. The concept has parallels in other jurisdictions' consignment sales and sale on commission.