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Consignment

Direct Sales and Distribution Channels

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Consignment is a business arrangement in which the owner of goods, the consignor, hands them over to another party, the consignee, to sell on their behalf while the consignor keeps legal ownership until an item is actually sold to a buyer. The consignee holds and displays the goods and takes on no financial risk for unsold stock, being paid only a share of the proceeds once a sale is made, while any profit or loss from the item ultimately belongs to the consignor. The arrangement is common in auction houses, consignment shops, shipping arrangements and online resale platforms.

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