What is Consignment?

Legal Definition
Consignment is the act of consigning, the act of giving over to another person or agent's charge, custody or care any material or goods but retaining legal ownership until the material or goods are sold. That may be done for the purpose of shipping the goods, transferring the goods to auction or intending the goods to be placed on sale in a store (a consignment store).

The verb "consign" means "to send" and therefore the noun "consignment" means "sending goods to another person". In the case of "retail consignment" or "sales consignment" (often just referred to as a "consignment"), goods are sent to the agent for the purpose of sale. The ownership of these goods remains with the sender. The agent sells the goods on behalf of the sender according to instructions. The sender of goods is known as the "consignor" and the agent entrusted with the custody and care of the goods is known as the "consignee".
-- Wikipedia
Legal Definition
In general, the act of transferring possession of goods to another, who might simply take charge but more commonly try to sell them. The owner of the goods can then be paid from the proceeds of the sale.

Under the UCC, a transaction more specifically defined as a delivery of goods to a merchant for the purpose of sale, with additional requirements such as a minimum value of $1,000 for each delivery. See UCC § 9-102(a)(20).
Legal Definition
The act or process of consigning goods; the transportation of goods consigned; an article or collection of goods sent to a factor to be sold; goods or property sent, by the aid of a common carrier, from one person in one place to another person in another place. See Consign.
-- Black's Law Dictionary
Legal Definition
The act of consigning goods to one for sale or custody.
-- Ballentine's Law Dictionary