Consignment sale is an arrangement in trade in which a seller or the consignor sends goods to a buyer or consignee
without getting payment for the goods then
itself. The consignee or the buyer pays the amount only when the goods are sold. It is actually
a
delivery
of goods
not amounting to
sale.
The
seller retains the
ownership of the goods until the payment
is
made in full by the buyer. The unsold
goods will be taken back after some period. It is also referred
to as ‘sale or return’.
The
seller is usually responsible
for loss, shrinkage, or damage of its merchandise
while
in the control and custody of the buyer.