Consignés

Consignés is the plural form of the past participle consigné, used as an adjective or noun in several senses. In a commercial context, it refers to goods that have been delivered to a trader for sale on consignment. The term is commonly used to describe merchandise placed with a retailer by the owner or supplier, with the understanding that ownership remains with the consignor until a sale occurs.

In a typical arrangement of sale on consignment, the consignor transfers possession of the goods to the consignee, who acts as an intermediary. The consignee stores and displays the items, handles the sale, and earns a commission. Ownership of the goods stays with the consignor until sale; the consignee does not record revenue from the sale as their own until the item is sold. Unsold goods can usually be returned to the consignor within an agreed period. Financially, the consignor is paid only for sold items, and the contract may specify how unsold stock and any expenses are treated.

This model is widely used by retailers, galleries, and artisans for items such as art, fashion, books, or antiques. It offers advantages for consignors, who can reach broader markets without risk of immediate disposition, and for consignees, who can expand inventory without purchasing upfront. However, it also involves risks, including inventory management, liability for damage, and delayed or uncertain cash flow for the consignor, as well as potential cash flow and space constraints for the consignee. The specific terms—payment timing, commissions, duration, and conditions for returning unsold goods—are typically set out in a consignation contract and vary by jurisdiction and industry.