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Consignor vs consignee: Everything you need to know

A consignor is the owner of commodities, while a consignee is the recipient of goods being exported. Learn more about the differences between them in this blog.

In international shipping, each consignment is handled by multiple parties at various stages. Of the many parties involved, consignors and consignees are two significant entities in the logistics ecosystem. A consignor is the owner of commodities, while a consignee is the recipient of goods being exported. In this blog post, we will discuss the meaning and differences between these two terms in detail.

Who is a consignor?

A consignor is the entity that ships the product. A consignor might be a factory, distribution facility, or dropship origin point. When exporting, the exporter of record is usually the consignor.¹

The consignor retains ownership of goods until they are sold to the end customer. The consignor is also usually in charge of determining the selling price of the goods. They may also have the option to negotiate a higher price in some situations.²

Who is a consignee?

A consignee is the recipient of the goods being sent. Usually, they are the customer or client who takes ownership of the product, but in certain cases, the consignee could also be an intermediary who has been nominated by the final buyer. The consignee could be an individual or a company, an agent designated by the buyer, or even the buyer’s bank. In international shipping, the consignee is generally the importer of record.³

What is a consignment?

A consignment is a shipment of goods or commodities that are sent from a consignor to a consignee. Usually, a consignment is entrusted to a third party, typically a carrier or logistics provider for transportation or sale on behalf of the consignor. The consignor or shipper retains ownership of the consignment until the buyer or consignee completes the sale transaction by paying for the shipment in full.⁴

Difference between consignor and consignee

Some of the key factors differentiating the two parties are:

· The sender of a consignment is known as the consignor, while the recipient is known as the consignee.
· The consignor is responsible for packing and labeling the goods in shipping containers, while the consignee is responsible for unpacking and unloading of the goods.
· The consignor is responsible for payment of insurance to cover the cargo and payment of shipment freight. The consignee is responsible for the payment of import duties and taxes.⁵

Example of consignor and consignee

Consider the following scenario to better understand the consignor and consignee relationship:

Company X is a furniture manufacturer in the United States that wants to sell its products to a retailer in Italy. In this case, Company X is the consignor because it is the owner of the shipment. The consignor will select a carrier and ship the consignment. The retailer in Italy is the consignee that will receive the goods when the shipment arrives. Once the retailer pays for the shipment in full, the ownership of the products will be transferred to them.*

*The above-mentioned example has only been used to explain the concept.

The consignor and consignee are both key entities in the shipment process. While the consignor is in charge of goods until they are delivered to the consignee, the latter is in charge of accepting cargo and assuming ownership of the commodities. A thorough understanding of the differences between these two parties can help traders and e-commerce exporters navigate the complexities of global logistics effectively, ensuring smoother export operations. For export-related support and assistance, exporters can leverage the tools and services offered by e-commerce export programs like Amazon Global Selling.

Easy e-commerce exports with Amazon Global Selling

Amazon Global Selling is an e-commerce export program that helps to take your business from India to the global markets in 200+ countries and territories across Americas, Europe, the Middle East, and Asia-Pacific through its worldwide marketplaces. Whether you are a manufacturer, seller, reseller, or you have an emerging brand, you can export from India without setting up a store or warehouse abroad.

Frequently Asked Questions

Is the consignee the buyer or a seller?

A consignee is usually the buyer or receiver of the goods or shipment.

Is a consignor a shipper?

Usually, ‘shipper’ and ‘consignor’ are the same individual or entity.

What is a consignment note?

A consignment note is a document that contains details about goods being shipped, a contract of carriage, and instructions issued to the carrier.⁶

What is the difference between shipper, consignor, and carrier?

A shipper or a consignor refers to the same individual or company that is a supplier or the owner of the commodities to be shipped. On the other hand, a carrier is a person or entity in charge of transporting packages until they arrive at their destination.

Published on December 29, 2022.

1. https://www.csatransportation.com/blog/consignee-consignor-meaning-shipping
2. https://www.ddcfpo.com/freight-process-insights/consignor-vs-consignee-whats-the-difference
3. https://www.csatransportation.com/blog/consignee-consignor-meaning-shipping
4. https://www.letsbloom.com/blog/what-is-consignee/
5. https://www.ddcfpo.com/freight-process-insights/consignor-vs-consignee-whats-the-difference
6. https://www.mondaq.com/turkey/rail-road--cycling/170492/the-content-and-functions-of-the-consignment-note-under-the-cmr

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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.

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