Assignment vs. Consignment — What's the Difference?

Assignment is a term commonly used to describe a task or duty allocated to a person. It often involves specific responsibilities that need to be completed within a certain timeframe. For example, a teacher might give students an assignment to write an essay on a particular topic. Consignment, on the other hand, refers to an arrangement where goods are delivered to another party, typically a retailer, who sells the goods on behalf of the owner. The owner retains ownership until the goods are sold. For instance, an artist might consign their artwork to a gallery, which will sell the pieces and take a commission.

In the context of assignment, the focus is on the delegation of tasks or duties. It is prevalent in educational, professional, and organizational settings. For example, an employee might receive an assignment to complete a project by a certain deadline. In contrast, consignment is primarily used in commercial settings, where goods are entrusted to another party for sale or storage. For example, consignment shops sell items on behalf of the owners, often taking a percentage of the sale price.

Assignments typically come with clear instructions and objectives. The person assigned the task is responsible for completing it as directed. Consignment involves an agreement between the owner and the consignee (the person or entity receiving the goods), detailing the terms of sale and the percentage of profit the consignee will earn. For example, a consignment agreement might specify the duration the goods will be held and the commission rate for sales.

In terms of responsibility, assignments place the onus on the individual to fulfill the given task. Consignment shifts the responsibility of selling or storing the goods to the consignee while the owner waits for the goods to be sold. For example, a business might assign an employee to handle customer service inquiries, while another might consign products to a retailer for sale.