Shipment vs. Consignment: Difference and Comparison
Edited by Muazma Batool — By Muneeza Rehman — Updated on September 10, 2023
Shipment refers to goods transported; consignment is goods sent by a consignor to a consignee for sale, where ownership remains with the sender until sold.
Difference Between Shipment and Consignment
Shipment and consignment, both related to the transfer of goods, carry different implications in the world of commerce. Shipment generally pertains to the act of transporting goods from one place to another. It can involve various modes of transportation such as air, sea, or land. Consignment, however, involves a specific arrangement where goods are sent by a consignor to a consignee, with the understanding that the goods will be sold on behalf of the consignor.
Muazma Batool
Sep 10, 2023
A fundamental distinction between shipment and consignment lies in the ownership of the goods. In a shipment, once the goods are sent out, the ownership might transfer to the receiver, especially if it's a straightforward purchase. In consignment, even though the goods have been dispatched to the consignee's location, the ownership remains with the consignor until the items are sold.
Muazma Batool
Sep 10, 2023
While shipment can be a one-time transaction, consignment usually denotes an ongoing relationship between the consignor and consignee. In the consignment scenario, the consignee tries to sell the goods, and only once the sale happens does the consignee pay the consignor. Shipment, on the other hand, doesn’t necessarily involve any future transactions post the transportation of goods.
Muazma Batool
Sep 10, 2023
Another angle to consider is the risk factor. In shipments, once the goods are delivered, the responsibility typically transfers to the recipient. In consignments, the consignor bears the risk until the goods are sold, meaning if the items are damaged or lost before being sold, the loss is on the consignor.
Nolan
Sep 10, 2023
Shipment vs. Consignment Comparison Chart
Definition
Transporting goods from one place to another.
Goods sent for sale, ownership retained until sale.
Muazma Batool
Sep 10, 2023
Nature of Transaction
Can be a one-time transaction.
Indicates an ongoing relationship.
Muazma Batool
Sep 10, 2023
Shipment vs. Consignment Definitions
◉Consignment
The act of consigning or sending goods
He sent the artwork for consignment.
Kaitlyn
Sep 10, 2023
◉Shipment
Process of sending from one place to another
Shipment to remote areas takes longer.
Kaitlyn
Sep 10, 2023
◉Consignment
Delivery of goods for selling, trust or custody
They have a new consignment from local artists.
Lucas
Sep 10, 2023
◉Shipment
The dispatch of goods for transport
The company handles international shipments.
Olivia
Sep 10, 2023
◉Consignment
A batch of goods for sale where the sender retains ownership
The consignment in the store is from various artisans.
Muazma Batool
Sep 10, 2023
◉Consignment
A collection of goods to be sent, in transit or having been sent.
Muneeza Rehman
May 03, 2023
◉Shipment
a load of goods that is transported by any method (not just by ship)
We're expecting another shipment of oranges tomorrow.
Muneeza Rehman
May 03, 2023
◉Shipment
the act of transporting goods
Shipment of hazardous waste on this route is strictly prohibited.
Muneeza Rehman
May 03, 2023
◉Consignment
The sale of one's own goods (clothing, furniture, etc.) through a third-party vendor, in exchange for a portion of the sale price, and with the consigner retaining ownership of the goods until they are sold or abandoned.
Muneeza Rehman
May 03, 2023
◉Shipment
The act or process of shipping; as, he was engaged in the shipment of coal for London; an active shipment of wheat from the West.
Muneeza Rehman
May 03, 2023
◉Shipment
That which is shipped.
The question is, whether the share of M. in the shipment is exempted from condemnation by reason of his neutral domicle.
Muneeza Rehman
May 03, 2023
◉Consignment
The act of consigning or sending property to an agent or correspondent in another place, as for care, sale, etc.
Muneeza Rehman
May 03, 2023
◉Consignment
That which is consigned; the goods or commodities sent or addressed to a consignee at one time or by one conveyance.
To increase your consignments of this valuable branch of national commerce.
Muneeza Rehman
May 03, 2023
◉Consignment
the official act of consigning a person to confinement (as in a prison or mental hospital)
Muneeza Rehman
May 03, 2023
◉Consignment
Goods sent to be sold, ownership retained
The boutique took her dresses on consignment.
Olivia
Sep 10, 2023
◉Consignment
Goods dispatched under a consignment agreement
The consignment hasn’t sold yet.
Muazma Batool
Sep 10, 2023
Shipment vs. Consignment Frequently Asked Questions
How is consignment related to the sale of goods?
Consignment involves sending goods for sale, where ownership remains with the sender until sold.
Muazma Batool
Sep 10, 2023
Does consignment always mean the goods are for sale?
Consignment typically means goods are sent for sale, with ownership retained until the items are sold.
Leo
Sep 10, 2023
What does shipment mainly refer to?
Shipment generally pertains to the act of transporting goods.
Muazma Batool
Sep 10, 2023
When does ownership transfer in a shipment?
In shipment, ownership might transfer upon delivery.
William
Sep 10, 2023
Who bears the risk in a consignment?
The consignor bears the risk until the goods are sold.
Muneeza Rehman
Sep 10, 2023
How is payment structured in consignment?
In consignment, the consignee pays the consignor after the goods are sold.
Muneeza Rehman
Sep 10, 2023
Can shipment refer to the goods themselves?
Yes, shipment can refer to the actual goods being transported.
Lucas
Sep 10, 2023
How does risk differ between shipment and consignment?
In shipments, responsibility often transfers upon delivery, while in consignments, the consignor bears risk until goods are sold.
Muazma Batool
Sep 10, 2023
Is consignment a one-time transaction?
Consignment usually denotes an ongoing relationship between consignor and consignee.
Muazma Batool
Sep 10, 2023
Who is responsible for unsold items in consignment?
The consignor is responsible for unsold items in consignment.
Muneeza Rehman
Sep 10, 2023
Content Creators
Written by
Muneeza RehmanAt Comparisons.wiki, Muneeza skillfully navigates the vast sea of information, ensuring clarity and accuracy as the lead content editor. With a keen eye for detail, she curates every comparison to enlighten and engage readers.
Edited by
Muazma BatoolAs a content editor, Muazma Batool is not just a grammar guru but a creative mastermind who breathes life into every word. With an eagle eye for detail and a passion for storytelling, she transforms bland text into engaging content that captivates audiences and drives results.
