Consignment makes it easier for artists to get their work into commercial spaces, such as galleries and shops, giving artists opportunities to reach new audiences without having to transfer ownership in advance.
Because intermediaries such as galleries, shops, and online platforms earn a commission only after a sale, they have an incentive to showcase and promote the work.
However, consignment also comes with certain risks. Works may sit in storage for long periods, receive limited visibility, or be promoted less actively than expected. Misunderstandings about pricing, discounting, or marketing can lead to tension, especially when unsold works remain out of sight, such as in a gallery backroom.
In consignment, it is essential to have clarity on all aspects of the relationship with the intermediary, especially regarding intellectual property, display permissions, commissions or fees, and how sales are recorded and reported.
It is also important to include adequate risk insurance, especially when artworks are shipped internationally. Insurance minimizes financial losses from damage or theft during transportation and display, protecting both artist and gallery interests.
A well-drafted written consignment agreement typically includes practical details, such as:
how commissions are calculated,
where and how long the work will be displayed,
who is responsible for transportation and insurance, and
how and when unsold artworks will be returned.
These safeguards protect both the artist and the gallery and help prevent confusion during the sale process.
For legal details, see our topic on Consignment Agreements.
Consignment practices now extend into digital spaces. Some online art platforms use a model, where artists consign NFTs or editioned digital art while retaining ownership, enabling sales and exhibition in virtual spaces.
Image credit: Mariana Maciel