Difference between Sale and Consignment

Difference Between Consignment And Sales
Consignment can't be treated as sales of goods. it's totally different from sales. The distinction between consignment and sales are as follows:

1. Ownership
Consignment: The possession of the products remains with the consigner till sales is effected by the consignee.
Sales: The possession of the products right away transferred to the buyer once sale is effected.

2. Relationship
Consignment: the relationship between the consigner and recipient are of principal and agent. Their relation ship area unit continuing until terminated.
Sales: the connection between the 2 parties are that of seller and emptor and that they terminated as before long as payment is made and merchandise are delivered.

3. Expenses
Consignment: The expenses incurred by the recipient to execute sale and therefore the expenses incurred by consigner to send the products to the recipient, each are borne by the consigner.
Sales: Any expenses incurred once the sale isn't borne by the vendor.

4. Risk
Consignment: the danger of products under consignment is usually with the consigner.
Sales: once the sale is created the risk is transferred to the customer.

5. return of products
Consignment: recipient will come merchandise to the consignor since those are properties of consigner.
Sales: A emptor can't come merchandise unless the products are found defective or broken or the vendor agrees to.

6. Statement
Consignment: For giving details regarding the products sold and expenses incurred by him, recipient sends the account sales to consigner.
Sales: the customer needn't submit any account sales to the vendor.

7. Stock
Consignment: The unsold stock with the recipient will be treated as a stock of the consigner.
Sales: just in case of sale, the buyer's unsold stock don't attract the vendor.

8. Commission
Consignment: Commission is that the main thought of consignment. The consignee performs the marketing activity just for commission.
Sales: Profit is that the main thought of sales.