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Definition

Consigned goods

Consigned goods referred as goods that held for sale by one party (the consignee) although ownership of the goods is retained by another party (the consignor).

In some lines of business, it is common to hold the goods of other parties and try to sell the goods for them for a fee, but without taking ownership of the goods. These are called consigned goods.

For example, you might have a used car that you would like to sell. If you take the item to a dealer, the dealer might be willing to put the car on its lot and charge you a commission if it is sold. Under this agreement the dealer would to take ownership of the car, which would still belong to you. Therefore, if an inventory count were taken, the car would not be included in the dealer’s inventory.

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