Consignment vs. Shipment: Know the Difference
By Shumaila Saeed || Updated on December 25, 2023
Consignment refers to a batch of goods sent for sale or custody, while shipment denotes the process of transporting goods.
Key Differences
Consignment typically refers to goods sent to an agent for sale or storage, where the consignor retains ownership until sale. Shipment, on the other hand, refers broadly to the transport of goods, regardless of ownership and sales arrangements.
Shumaila Saeed
Nov 20, 2023
In a consignment, the consignor retains ownership until the goods are sold. In contrast, with a shipment, ownership and responsibility often transfer to the buyer or recipient upon delivery or as per agreed terms.
Shumaila Saeed
Nov 20, 2023
Consignment is primarily used for sales or storage purposes, relying on a third party to sell or care for the goods. Shipment is the act of moving goods from one location to another, focusing on the logistics of transport.
Shumaila Saeed
Nov 20, 2023
In consignment, the risk remains with the consignor until the goods are sold. In shipment, the risk is typically shared or transferred as per the shipping terms, which also dictate the payment responsibilities.
Shumaila Saeed
Nov 20, 2023
Consignment involves a trust-based relationship between consignor and consignee, often in retail scenarios. Shipment is a broader term, applicable to various transport arrangements and business models.
Shumaila Saeed
Nov 20, 2023
ADVERTISEMENT
Comparison Chart
Definition
Goods sent for sale or custody, owner retains ownership until sale.
Transport of goods from one place to another.
Shumaila Saeed
Nov 20, 2023
Ownership
Retained by consignor until sale.
Often transfers to recipient upon delivery.
Shumaila Saeed
Nov 20, 2023
Purpose
For sale/storage, relying on third party.
Moving goods, focusing on logistics.
Shumaila Saeed
Nov 20, 2023
Risk
Remains with consignor until sold.
Shared/transferred as per shipping terms.
Shumaila Saeed
Nov 20, 2023
Business Model
Trust-based, often in retail.
Applicable to various transport arrangements.
Shumaila Saeed
Nov 20, 2023
ADVERTISEMENT
Consignment and Shipment Definitions
Consignment
Goods sent on Consignment
A batch of handmade crafts sent on consignment to a boutique for sale.
Shumaila Saeed
Nov 20, 2023
Shipment
Commercial Shipment
A shipment of electronic goods dispatched to an overseas customer.
Shumaila Saeed
Nov 20, 2023
Consignment
Retail Consignment
A local artist's paintings displayed on consignment at an art gallery.
Shumaila Saeed
Nov 20, 2023
Shipment
Expedited Shipment
An expedited shipment of medical supplies to a hospital in urgent need.
Shumaila Saeed
Nov 20, 2023
Consignment
Legal Aspect of Consignment
Signing a consignment agreement to store antiques in a museum.
Shumaila Saeed
Nov 20, 2023
ADVERTISEMENT
Shipment
Bulk Shipment
A bulk shipment of grain sent from the Midwest to international markets.
Shumaila Saeed
Nov 20, 2023
Shipment
International Shipment
An international shipment of textiles from India to Europe.
Shumaila Saeed
Nov 20, 2023
Consignment
A collection of goods to be sent, in transit or having been sent.
Shumaila Saeed
Oct 19, 2023
Shipment
A load of goods that is transported by any method (not just by ship)
We're expecting another shipment of oranges tomorrow.
Shumaila Saeed
Oct 19, 2023
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
Oct 19, 2023
Shipment
The act of transporting goods
Shipment of hazardous waste on this route is strictly prohibited.
Shumaila Saeed
Oct 19, 2023
Shipment
The act or process of shipping; as, he was engaged in the shipment of coal for London; an active shipment of wheat from the West.
Shumaila Saeed
Oct 19, 2023
Consignment
The act of consigning or sending property to an agent or correspondent in another place, as for care, sale, etc.
Shumaila Saeed
Oct 19, 2023
Shipment
That which is shipped.
The question is, whether the share of M. in the shipment is exempted from condemnation by reason of his neutral domicle.
Shumaila Saeed
Oct 19, 2023
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.
Shumaila Saeed
Oct 19, 2023
Shipment
Domestic Shipment
A local shipment of furniture from the warehouse to a retail store.
Shumaila Saeed
Nov 20, 2023
Consignment
The official act of consigning a person to confinement (as in a prison or mental hospital)
Shumaila Saeed
Oct 19, 2023
Consignment
Consignment in Business
A manufacturer sends products on consignment to a retailer, only receiving payment upon sale.
Shumaila Saeed
Nov 20, 2023
Consignment
Consignment Arrangement
High-end fashion clothing sent on consignment to a luxury store.
Shumaila Saeed
Nov 20, 2023
Repeatedly Asked Queries
Who owns the goods in a consignment?
The consignor retains ownership until the goods are sold.
Shumaila Saeed
Nov 20, 2023
Who is responsible for a shipment?
Responsibility depends on shipping terms, often shifting to the recipient upon delivery.
Shumaila Saeed
Nov 20, 2023
What types of goods are typically shipped?
A wide range, from raw materials to finished products.
Shumaila Saeed
Nov 20, 2023
Is consignment common in retail?
Yes, especially for unique or high-value items.
Shumaila Saeed
Nov 20, 2023
What risks are involved in consignment?
Unsold goods and potential damage while with the consignee.
Shumaila Saeed
Nov 20, 2023
What is consignment?
Consignment refers to sending goods to a third party for sale or storage while retaining ownership.
Shumaila Saeed
Nov 20, 2023
What does shipment mean?
Shipment refers to the process of transporting goods from one location to another.
Shumaila Saeed
Nov 20, 2023
How do consignment sales work?
Goods are sold by a third party, and the consignor receives payment post-sale.
Shumaila Saeed
Nov 20, 2023
Is consignment beneficial for small businesses?
Yes, it reduces upfront costs and inventory risks.
Shumaila Saeed
Nov 20, 2023
Can consignment goods be returned?
Yes, if they don't sell within an agreed period.
Shumaila Saeed
Nov 20, 2023
Can consignment terms be negotiated?
Yes, they are often subject to agreement between parties.
Shumaila Saeed
Nov 20, 2023
What is a consignment fee?
A charge by the consignee for selling the goods.
Shumaila Saeed
Nov 20, 2023
Are consignments used internationally?
Yes, particularly in art and fashion industries.
Shumaila Saeed
Nov 20, 2023
How is shipment tracking done?
Through tracking numbers and logistics systems.
Shumaila Saeed
Nov 20, 2023
How does weather affect shipments?
Adverse weather can delay or damage shipments.
Shumaila Saeed
Nov 20, 2023
Can consigned goods be sold online?
Yes, many consignees sell through online platforms.
Shumaila Saeed
Nov 20, 2023
What happens if a shipment is lost?
Compensation depends on insurance and shipping terms.
Shumaila Saeed
Nov 20, 2023
Share this page
Link for your blog / website
HTML
Link to share via messenger
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.
Hifza Nasir
Shumaila Saeed
