Consignment

Consignment (consignment) is a consignment of the trade commission, but also in international trade to the practice habits of one. Import and export business in our country, the use of consignment is not common, but in certain commodity transactions, to promote the turnover of export expansion required can also be a flexible way of the proper use of consignment.
"Consignment" is a sales agent is different from the trade. It refers to commissioned (the owner) first consignment of goods shipped to, the commission abroad of a person to sell (by the client), the Consignment Agreement in accordance with the conditions laid down by the people in lieu of the owner to sell, goods sold, by the owner to sell to the people clearing payment of a trade practices.

International trade consignment characteristics
1. People first consignment of goods shipped to destination markets (consignment to), then by the people to sell at consignment sales to local buyers. Therefore, it is typical to conduct trade with the kind of spot trading.
2. Consignment between people and people are commissioned to sell consignment relationship, rather than trade relations. Person to sell solely on the basis of consignment instructions to dispose of the goods. Title to the goods sold at consignment consignment is still before the people.
3. Consignment of goods sold at before, including transit and consignment to arrive after all the costs and risks borne by the consignment.
Shipment of export cargo consignment after consignment to arrive before the road can also use the sale of goods approach, first one sold, that is, when the goods are still in transit, if the conditions of that contract to sell, the sale of fragmentation is still transported to their intended destination.

The advantages and disadvantages of consignment
a. the advantages of consignment
(1) consignment of goods before the sale, or consignment of persons who hold title to the goods in favor of随行就市.
(2) The consignment is based on the physical trade. Goods to meet directly with buyers, help to promote turnover.
(3) people do not sell the burden of the risks and costs, usually by the consignment垫资people, people to sell off funds, the ability to mobilize the enthusiasm of their business.
b. consignment of disadvantage
(1) the exporter to assume the risks, costs larger.
(2) payment of the Consigned Goods Recycling more slowly.