An Internet consignment agreement 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.
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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.
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To speak with Web Lawyer Mike Young about online consignments, set up a phone consultation with him.