No. Consignment shops issue a Form 1099-K if the criteria is met for a consignor. The tax law for consignment shops is gray only to the extent that "consignment" many not be used in the language, however it is a payment for the sale of goods by a third party and not for the services of a person.
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Who Must File
Every payment settlement entity (PSE) or other party which submits instructions to transfer funds to the account of a participating payee, in settlement of reportable payment transactions, must file an information return (Form 1099-K) with respect to each participating payee for that calendar year.
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IRS Instructions for Form 1099-K
Since consignment companies are now issuing 1099-K forms to keep on the good side of the IRS you should report ALL gross sales on the Schedule C and then simply deduct the commissions paid out as an expense. This will net you the same amount but keep you from having a mismatch with the IRS.
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