definitions Consignment

Consignment

Delivery of merchandise from an exporter (i.e. the consignor) to an agent (i.e. the consignee) under agreement that the consignee sells the merchandise of the account of the consignor, while the consignor retains title to the goods until the consignee sells them. Under this selling method, goods are only shipped, but not sold, to the importer. The exporter (consignor) retains title to the goods until the importer (consignee) has sold them to a third party. This arrangement is normally made only with a related company because of the large risks involved.