A consignment deal involves transferring ownership of goods or services from one party (the consignor) to another (the consignee). The consignor retains possession of the items and typically has legal title, while the consignee holds them until they are sold. This type of agreement is advantageous to businesses that need to move their inventory but don’t have the resources or capacity to store it themselves. By selling on consignment, vendors can sidestep expensive shipping costs and reduce their financial outlay by only having to pay the consignee when their products are sold.