Consignment is a business arrangement where goods are sent to a retailer or agent, who sells them on behalf of the owner. The owner retains ownership of the items until they are sold, allowing for reduced risk. This method is commonly used in various industries, including fashion, art, and furniture. In a consignment agreement, the seller typically receives a percentage of the sale price once the item is sold. This arrangement benefits both parties: the seller can reach a broader audience without upfront costs, while the retailer can offer a diverse range of products without purchasing inventory outright.