consignment

kun-SAYN-ment /kənˈsaɪn.mənt/
nounC1GMATCAT
businesslegalcommercial

A batch of goods destined for or delivered to someone; an arrangement where goods are left with a third party to sell.

In a consignment deal, the original owner keeps the title (ownership) until the item is actually sold to a customer.

The story behind the word. From the Latin 'consignare', meaning 'to seal together'. It refers to the historical practice of sealing a crate of goods with a wax stamp to prove it hadn't been tampered with during transit.

Word relationships

  • shipment: A shipment is just the act of sending; a consignment is the specific batch of goods and the legal agreement behind it.

Commonly confused with

  • assignment: An assignment is a task; a consignment is a batch of physical goods.

Word family

  • consign (verb): To deliver something to another's custody.
  • consignor (noun): The person who sends the goods.

Collocations

  • on consignment
  • shipped on consignment
  • consignment of goods

Example sentences

  • "The latest consignment of organic coffee arrived at the port this morning." Shipping.
  • "Many small farmers sell their produce to local boutiques on consignment." Retail agreement.

Memory hook

You 'SIGN' the 'CON'tract to send the goods. Consignment is 'sent but not yet sold'.

When not to use

Don't use it for a simple purchase where money is exchanged immediately.

Fun facts

  • Consignment shops are popular for high-end fashion because the shop owner doesn't have to pay for the inventory upfront.

Related words

inventory, intermediary

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