A consignment is an indirect way of selling articles. When an individual or a company does not have expertise or time to sell the assets, the job is transferred to a third party that sells the articles. And in exchange, the third party takes commission. The entity that sells the asset is called a consignee and the job of selling the articles is entrusted on the consignee by the consignor. The consignee is responsible for the storage of the products. The ownership of the assets remain with the consignor until they are sold to a buyer. The consignee does all the heavy lifting in exchange for a fee and thus the consignor does not need to take any trouble.
There are many aspects of consignment services. The aspects are discussed in details below.
- Estimation Of Value– The consignee evaluates approximately how much value can be squeezed from the sale of the assets. Sometimes the selling price is fixed by the consignor.
- Pick Up – Next comes the step of transferring the assets of the consignor from his site to the warehouse of the consignee. The shipping charge, insurance charge are all borne by the consignor.
- Visual Examination – The assets are then checked in a cursory manner to detect any damage or dirt. In this step the items are cleaned thoroughly.
- Sticking Barcode- In the next step, bar codes are stuck on the items and all the information regarding the item is stored on computers.
- Assigning Unique Project Codes- A consignee has many clients. To identify that a particular item belongs to a particular consignee, unique projects codes are assigned to the items of the concerned consignor.
- Taking Photos of The Items- In this step, the assets are photographed for record keeping and for displaying them on online shopping sites.
- Quality Examination – Now in this step, the items are thoroughly checked by the qualified personnel of the company to weed out any item that is unfit for sale.
- Listing- The items are then listed on e commerce sites like Ebay for sale. If the consignee possesses a physical store, it can display the items there.
- Sale- When an interested buyer agrees to buy any item, the company sell that to him. It is at this stage that the consignor lose ownership of the item sold and the buyer is now the new owner.
- Payment- After the sale is realized, the payment is transferred to the consignor.
- Shipping- The consignee takes due care in shipping the item or items to the buyer’s address.
- Communication With The Consignor- An efficient consignee always maintains communication with the consignor and provides him with updates about his items.
With the help of consignment services companies can sell its assets without any trouble. These services save the valuable time of a company and help them remain productive.