Consignment vs. Sale: Know the Difference
By Shumaila Saeed || Published on January 15, 2024
Consignment involves sending goods to a third party to sell on behalf, while Sale is the direct transaction of goods for payment.
Key Differences
In Consignment, goods are sent to an agent or third-party retailer who sells them on behalf of the owner, payment is made only after a sale occurs. In a Sale, the exchange of goods for payment is direct and immediate upon transaction completion.
Shumaila Saeed
Jan 15, 2024
Consignment implies the original owner retains ownership of the goods until they are sold, bearing the risk of unsold items. In a Sale, ownership and risk transfer to the buyer immediately upon purchase.
Shumaila Saeed
Jan 15, 2024
The Consignment process typically involves a consignor and a consignee, where the consignee sells the goods and later pays the consignor a portion of the proceeds. A Sale is a straightforward transaction between a seller and a buyer without an intermediary.
Shumaila Saeed
Jan 15, 2024
Revenue from Consignment sales is not guaranteed until items are sold, and the amount received is often a percentage of the sale price. In a Sale, revenue is secured at the point of transaction, usually at a fixed or negotiated price.
Shumaila Saeed
Jan 15, 2024
Consignment is often used for items that may be difficult to sell directly, like art or unique collectibles. Sales are typical for standard retail items where immediate exchange is preferable.
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Jan 15, 2024
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Comparison Chart
Revenue Nature
Uncertain, percentage-based
Certain, fixed or negotiated price
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Jan 15, 2024
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Consignment and Sale Definitions
Consignment
Consignment involves retaining ownership of goods until they are sold.
The artist placed his paintings on Consignment at the gallery.
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Jan 06, 2024
Sale
Sale is the exchange of goods for payment.
The bookstore completed the Sale of the latest novel.
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Jan 06, 2024
Consignment
Consignment is sending goods to another party to sell on your behalf.
She sent her handmade jewelry on Consignment to a boutique.
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Jan 06, 2024
Sale
Sale is the act of selling something for monetary value.
The garage Sale was successful in clearing out old items.
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Jan 06, 2024
Consignment
Consignment is a method where payment is received after goods are sold.
The antique furniture was put on Consignment, with payment due post-sale.
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Jan 06, 2024
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Sale
Sale is a transaction between a buyer and a seller.
The online store announced a flash Sale for electronics.
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Jan 06, 2024
Consignment
Consignment is a way to market and sell items through a consignee.
The designer clothes were more accessible to customers through Consignment.
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Jan 06, 2024
Sale
Sale involves transferring ownership of goods upon payment.
The Sale of the car was finalized with the payment.
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Jan 06, 2024
Sale
The exchange of goods or services for an amount of money or its equivalent; the act of selling
The sale of such a nice house should be easy.
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Jan 05, 2024
Consignment
A collection of goods to be sent, in transit or having been sent.
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Jan 05, 2024
Sale
An offer or arrangement in which goods are sold at a discount
The store has a sale on winter coats.
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Jan 05, 2024
Sale
The business or activity of selling goods or services
She works in sales.
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Jan 05, 2024
Consignment
The sale of one's own goods (clothing, furniture, etc.) through a third-party vendor, in exchange for a portion of the sale price, and with the consigner retaining ownership of the goods until they are sold or abandoned.
Shumaila Saeed
Jan 05, 2024
Sale
The number of items sold or the amount of money received for a number of items sold
Sales are better than expected.
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Jan 05, 2024
Sale
An exchange of goods or services for currency or credit.
He celebrated after the sale of company.
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Jan 05, 2024
Consignment
The act of consigning or sending property to an agent or correspondent in another place, as for care, sale, etc.
Shumaila Saeed
Jan 05, 2024
Sale
Short for discount sale The sale of goods at reduced prices.
They are having a clearance sale: 50% off.
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Jan 05, 2024
Consignment
That which is consigned; the goods or commodities sent or addressed to a consignee at one time or by one conveyance.
To increase your consignments of this valuable branch of national commerce.
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Jan 05, 2024
Consignment
The official act of consigning a person to confinement (as in a prison or mental hospital)
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Jan 05, 2024
Sale
The act of selling; the transfer of property, or a contract to transfer the ownership of property, from one person to another for a valuable consideration, or for a price in money.
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Jan 05, 2024
Sale
Opportunity of selling; demand; market.
They shall have ready sale for them.
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Jan 05, 2024
Consignment
Consignment is a sales arrangement with a third party acting as an agent.
He used Consignment to sell his vintage car collection.
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Jan 06, 2024
Sale
Public disposal to the highest bidder, or exposure of goods in market; auction.
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Jan 05, 2024
Sale
The general activity of selling;
They tried to boost sales
Laws limit the sale of handguns
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Jan 05, 2024
Sale
A particular instance of selling;
He has just made his first sale
They had to complete the sale before the banks closed
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Jan 05, 2024
Sale
The state of being purchasable; offered or exhibited for selling;
You'll find vitamin C for sale at most pharmacies
The new line of cars will soon be on sale
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Jan 05, 2024
Sale
An occasion (usually brief) for buying at specially reduced prices;
They held a sale to reduce their inventory
I got some great bargains at their annual sale
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Jan 05, 2024
Sale
An agreement (or contract) in which property is transferred from the seller (vendor) to the buyer (vendee) for a fixed price in money (paid or agreed to be paid by the buyer);
The salesman faxed the sales agreement to his home office
Shumaila Saeed
Jan 05, 2024
Sale
Sale is the process of offering goods to customers for purchase.
The Sale of seasonal merchandise began in early December.
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Jan 06, 2024
Repeatedly Asked Queries
How does Consignment differ from a Sale?
Consignment involves a third party selling goods on behalf, while Sale is a direct transaction.
Shumaila Saeed
Jan 15, 2024
What items are commonly sold on Consignment?
Items like art, collectibles, and designer clothing are often sold on Consignment.
Shumaila Saeed
Jan 15, 2024
What does Sale mean?
Sale is the direct exchange of goods for payment between a buyer and seller.
Shumaila Saeed
Jan 15, 2024
Who takes the risk in Consignment?
The consignor bears the risk until the goods are sold.
Shumaila Saeed
Jan 15, 2024
Can a consignee set prices in Consignment?
Typically, the consignee and consignor agree on pricing, but the consignee often has some flexibility.
Shumaila Saeed
Jan 15, 2024
When does ownership transfer in a Sale?
Ownership transfers immediately upon completion of the Sale.
Shumaila Saeed
Jan 15, 2024
What is Consignment?
Consignment is sending goods to be sold by a third party, retaining ownership until sold.
Shumaila Saeed
Jan 15, 2024
What is a consignment fee?
A consignment fee is the percentage of the sale price paid to the consignee for selling the item.
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Jan 15, 2024
How quickly are goods sold in a Sale?
Goods are sold immediately in a Sale, with instant exchange of payment and goods.
Shumaila Saeed
Jan 15, 2024
Is a Sale always for a fixed price?
Not always; a Sale can involve fixed, negotiated, or discounted prices.
Shumaila Saeed
Jan 15, 2024
Are returns possible in a Sale?
Returns depend on the seller's policy but are typically possible in a Sale.
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Jan 15, 2024
Is payment immediate in Consignment?
No, payment in Consignment is made only after the goods are sold.
Shumaila Saeed
Jan 15, 2024
Can businesses use both Consignment and Sales?
Yes, businesses can use both methods depending on the product and market conditions.
Shumaila Saeed
Jan 15, 2024
How is revenue recognized in Consignment?
Revenue from Consignment is recognized after the sale of the consigned goods.
Shumaila Saeed
Jan 15, 2024
Do consignors need to market their goods in Consignment?
Marketing is often handled by the consignee, but the consignor can also promote their goods.
Shumaila Saeed
Jan 15, 2024
What legal agreements are involved in Consignment?
Consignment typically involves a contract outlining terms between consignor and consignee.
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Jan 15, 2024
Are online transactions considered Sales?
Yes, online transactions are considered Sales, involving direct exchange of goods and payment.
Shumaila Saeed
Jan 15, 2024
Is haggling common in Sales?
Haggling can occur in some Sales, especially in informal or individual transactions.
Shumaila Saeed
Jan 15, 2024
How does Consignment affect inventory for businesses?
Consignment allows businesses to offer more products without buying inventory upfront.
Shumaila Saeed
Jan 15, 2024
What are the benefits of Consignment for sellers?
Consignment allows sellers to reach wider markets without upfront costs.
Shumaila Saeed
Jan 15, 2024
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About Author
Written by
Shumaila SaeedShumaila Saeed, an expert content creator with 6 years of experience, specializes in distilling complex topics into easily digestible comparisons, shining a light on the nuances that both inform and educate readers with clarity and accuracy.
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