Who is the consignee in a consignment relationship?
The consignee is the acting agent who is selling inventory items on behalf of the principal (consignor). The consignee does not assume the risk of the inventory and will be compensated on a commission basis.
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Who is the consignor in a consignment relationship?
The consignor is a person who sends goods to an agent (consignee) to be sold on their behalf. The consignor retains ownership of the inventory even though it is physically located at the consignees warehouse. Additionally, the consignor cannot recognize revenue until the consignee sells the item to a 3rd party customer.