What is the role of the person who gives goods on consignment?

The person who gives goods on consignment is referred to as the consignor. This individual retains ownership of the goods while providing them to another party, known as the consignee, to sell on their behalf. The consignor is responsible for supplying the goods and may set specific terms regarding pricing and the duration for which the goods can be held for sale. Typically, the consignee pays the consignor only after the goods are sold, which allows the consignor to maintain some control over the inventory and finances of the sale process.

In a consignment arrangement, the consignor benefits from increased market reach without directly engaging in the sale process, while the consignee benefits by having the inventory available for sale without the upfront cost associated with purchasing the goods.