Consigner vs. Consignor: What's the Difference?
By Aimie Carlson & Janet White || Updated on March 4, 2024
Consigner and consignor are alternate spellings referring to the same role: a person or entity that sends goods to another to be sold.
Key Differences
The terms consigner and consignor both describe a party that entrusts goods to another party, known as the consignee, for the purpose of selling those goods. The primary function of this role is to transfer possession, but not ownership, of goods to another party to facilitate a sale, typically on a commission basis. While the spelling differs, the meaning and usage of the terms in legal and business contexts are identical, serving to identify the party who provides goods for consignment.
Both consigner and consignor engage in a consignment agreement with the consignee. This agreement outlines the terms under which the consignee will attempt to sell the goods, including the commission rate, the handling of unsold goods, and the responsibilities of each party. The choice between using "consigner" or "consignor" is largely a matter of preference, and there is no difference in the legal or operational responsibilities assigned to the role based on the spelling variation.
In practice, the consigner or consignor retains ownership of the consigned goods until they are sold. This arrangement allows for the return of unsold goods without financial loss beyond potential marketing or storage costs. It is a common practice in various industries, including retail, art, and automotive, where goods are sold on behalf of the owner by another party.
The relationship between the consigner/consignor and consignee is built on trust and mutual benefit. The consigner/consignor benefits from the consignee's retail space, customer base, and sales efforts, while the consignee gains inventory to sell without the upfront cost of purchasing goods. This partnership allows for a wider distribution of products and an opportunity for consigners/consignors to reach a broader market.
Despite the different spellings, the terms consigner and consignor are used interchangeably in legal documents, contracts, and business discussions, with no preference indicating a difference in function or status. The choice of spelling may vary by region or personal preference but does not affect the nature of the consignment relationship.
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Comparison Chart
Definition
A person or entity that sends goods to another for sale.
A person or entity that sends goods to another for sale.
Role
Entrusts goods to a consignee for sale on commission.
Entrusts goods to a consignee for sale on commission.
Legal Responsibilities
Retains ownership of goods until sold; outlined in a consignment agreement.
Retains ownership of goods until sold; outlined in a consignment agreement.
Industry Usage
Used interchangeably with consignor in various industries.
Used interchangeably with consigner in various industries.
Spelling Variation
Preference for "consigner" does not indicate a difference in meaning or function.
Preference for "consignor" does not indicate a difference in meaning or function.
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Consigner and Consignor Definitions
Consigner
Consigners often use consignment to reach broader markets.
Designers become consigners to place their fashion lines in high-end stores.
Consignor
Consignors retain ownership until the consignee sells the goods.
The consignor set a minimum price for the consigned antiques.
Consigner
Consigners entrust goods without transferring ownership.
The winery consigner delivered rare bottles to the auction house.
Consignor
A consignor is a party that consigns goods to another for sale.
The manufacturer, as the consignor, supplied electronics to the retailer.
Consigner
The term "consigner" highlights the act of consigning goods.
The consigner provided detailed instructions for the display of their products.
Consignor
The term "consignor" is synonymous with "consigner."
The consignor received a monthly report on the sales of their consigned items.
Consigner
A consigner is a party that sends goods to another for sale.
The artist acts as the consigner, providing paintings to the gallery.
Consignor
The consignor and consignee enter into a consignment agreement.
The consignor and the boutique agreed on a 60-day consignment period.
Consigner
The consigner remains the legal owner until the sale.
As the consigner, she can reclaim any unsold jewelry after the exhibit.
Consignor
Consignment allows consignors to utilize consignees' sales expertise.
Local artisans consign their crafts to the shop, relying on its tourist traffic.
Consigner
To give over to the care or custody of another.
Consignor
To give over to the care or custody of another.
Consigner
To put in or assign to an unfavorable place, position, or condition
"Their desponding imaginations had long since consigned him to a watery grave" (William Hickling Prescott).
Consignor
To put in or assign to an unfavorable place, position, or condition
"Their desponding imaginations had long since consigned him to a watery grave" (William Hickling Prescott).
Consigner
To set apart, as for a special use or purpose; assign
"South American savannas [that are] now consigned to grazing" (Eric Scigliano).
Consignor
To set apart, as for a special use or purpose; assign
"South American savannas [that are] now consigned to grazing" (Eric Scigliano).
Consigner
To deliver (merchandise, for example) for custody or sale.
Consignor
To deliver (merchandise, for example) for custody or sale.
Consigner
To submit; consent.
Consignor
To submit; consent.
Consigner
The party that consigns.
Consignor
One who consigns something to another; - opposed to consignee.
Consigner
(business) The party that provides merchandise for consignment sale.
Consignor
The person who delivers over or commits merchandise
Consigner
One who consigns. See Consignor.
Consigner
The person who delivers over or commits merchandise
FAQs
How do consigners/consignors make money?
Consigners/consignors make money when their consigned goods are sold by the consignee, usually receiving a predetermined percentage of the sale price.
What is the role of a consigner/consignor in a consignment agreement?
The consigner/consignor provides goods to be sold by the consignee, retaining ownership until the sale is completed.
What is a consigner/consignor?
A consigner/consignor is an individual or entity that sends goods to a consignee to be sold on their behalf.
Can a consigner/consignor get their unsold goods back?
Yes, unsold goods are typically returned to the consigner/consignor as per the consignment agreement.
Is it better to use consigner or consignor?
The choice between consigner and consignor is a matter of personal or regional preference, with no difference in legal or business implications.
What are the benefits of consignment for consigners/consignors?
Benefits include reaching a wider market, reducing storage needs, and leveraging the consignee's sales expertise without upfront costs.
What happens if consigned goods are damaged while with the consignee?
The consignment agreement usually outlines responsibility for damaged goods, often holding the consignee accountable for losses.
Does a consigner/consignor have to pay if goods aren't sold?
Typically, consigners/consignors do not pay if goods aren't sold, though they may incur costs related to delivery or return of goods.
Are consigner and consignor the same?
Yes, consigner and consignor refer to the same role and are interchangeable terms with no difference in meaning.
What industries commonly use consignment?
Consignment is common in retail, art, automotive, and fashion industries, among others.
What risks do consignors face in consignment agreements?
Risks include the possibility of goods not selling, potential damage to goods while in the consignee's possession, and delays in receiving payment for sold items.
How does a consignor choose a consignee?
A consignor typically chooses a consignee based on the consignee's market reach, reputation, sales record, and compatibility with the type of goods being consigned.
How are consignment profits typically split between consignor and consignee?
Profit splits vary, but commonly, the consignee takes a commission (a percentage of the sale price), and the remainder goes to the consignor.
What should a consignment agreement include to protect both parties?
A comprehensive consignment agreement should include terms on the consignment period, payment conditions, handling of unsold goods, liability for damages, and the commission rate.
Is consignment a good option for new businesses or artists?
Consignment can be an excellent way for new businesses or artists to gain exposure and access retail space without the need for significant upfront investment.
Can consignors consign goods to multiple consignees?
Yes, consignors can distribute their goods among multiple consignees to increase the chances of sales and market coverage.
How long do consigned goods typically stay with a consignee?
The consignment period can vary but is usually defined in the consignment agreement, ranging from a few weeks to several months.
How can consignors track the sales of their consigned goods?
Consignors should establish reporting mechanisms within the consignment agreement, such as regular sales reports or access to sales data, to monitor the performance of their consigned goods.
Can a consignor set the selling price for consigned goods?
Yes, consignors often have a say in setting a minimum selling price for their goods, as outlined in the consignment agreement.
What legal protections do consignors have in a consignment agreement?
Legal protections for consignors include terms in the consignment agreement regarding payment timing, unsold goods' handling, and liability for lost, stolen, or damaged items.
About Author
Written by
Aimie CarlsonAimie Carlson, holding a master's degree in English literature, is a fervent English language enthusiast. She lends her writing talents to Difference Wiki, a prominent website that specializes in comparisons, offering readers insightful analyses that both captivate and inform.
Co-written by
Janet WhiteJanet White has been an esteemed writer and blogger for Difference Wiki. Holding a Master's degree in Science and Medical Journalism from the prestigious Boston University, she has consistently demonstrated her expertise and passion for her field. When she's not immersed in her work, Janet relishes her time exercising, delving into a good book, and cherishing moments with friends and family.
