What Is Consignment?

Consignment is an arrangement where an owner hands goods to a seller who lists, markets, and sells them, then returns the proceeds minus a commission. In resale, the consignee is usually a platform or store that handles photography, pricing, authentication, and fulfillment so the original owner does not have to.

The model matters because it removes almost all friction for the seller. Someone with a closet of luxury goods and no time can send a box and wait for a payout. That convenience is what lets consignment operators aggregate high-value supply that peer-to-peer apps struggle to attract.

The tradeoff is the commission. Consignment fees run higher than peer-to-peer marketplace fees because the operator is doing far more work and carrying real operating costs: warehouses, authenticators, photographers, and customer service. Sellers pay for convenience and trust.

For the business reader, consignment is the capital-intensive end of resale. It scales more slowly than a pure marketplace, but it controls quality and commands the premium supply that makes luxury resale credible.