What is a consignment auction?

A consignment auction is defined as an auction where items are sold on behalf of another owner. In this type of auction, the auction house or auctioneer collects items from various owners with the understanding that they will sell these items at the auction on behalf of those owners. The owner receives a portion of the sale price once the item is sold, while the auctioneer retains a commission for facilitating the sale.

This arrangement benefits both the seller, who may not have the means or time to conduct their own sale, and the auctioneer, who has the opportunity to increase their inventory and attract bidders by offering a diverse range of items. It also allows for a broader selection during the auction, as consignors can bring in various goods, which can include antiques, collectibles, or other valuable items.

Other options, such as an auction limited to household items only, focus on a specific category and do not encapsulate the broad scope of a consignment auction. The option suggesting only online bidding does not accurately reflect the nature of consignment auctions, which can occur in-person or online. Lastly, the presence or absence of fees for sellers does not define a consignment auction; fees and commissions are typical in many auction scenarios, rather than being a distinguishing feature