An Internet consignment benefits three parties:
A. the person/business that owns the goods to be sold (the consignor);
B. the Internet business that sells the goods online (the consignee); and
C. the person/company that buys the goods online (the purchaser).
What is an e-commerce consignment agreement?
It’s a written contract where the owner of used equipment or other merchandise agrees that an Internet-based business can market and sell the goods online in exchange for a percentage of the sales proceeds.
Although the online business as consignee will have the goods in its possession until a sale occurs, the title to the goods remains with the consignor.
Important Consignment Agreement Issues
When having an Internet lawyer draft an e-commerce consignment agreement for your business to use as the consignee, you should consider the following issues…
- What percentage will you get paid for goods you take on consignment to sell to others via the Internet?
- When can the owner (consignor) demand return of the goods prior to a sale being made?
- If the owner requests the goods be returned prior to sale, will you be compensated for out-of-pocket expenses or other fees for marketing the goods online?
- How can you protect your business if the consignor doesn’t really own the goods?
- What method will you use to resolve any disputes with the consignor?
Your Internet attorney can help you reduce your legal risks while maximizing your profits in Internet consignment transactions. To speak with Web Lawyer Mike Young about online consignments, set up a phone consultation with him.