eBay Consignment Selling Can Really Pay Off!

Lydia, one of my former coaching clients, sent in her amazing sale. She sold this item on consignment for one of her clients, who was a DJ and received several music sales awards during previous years. Lydia arranged to do a 50/50 split after expenses for this client. The item sold for $960, and total time invested in listing and shipping the item was 1 hour. So Lydia's commission on this sale was a whopping $480 for 1 hour worth of work!

Selling on consignment has several advantages. You get to learn about items that you never would have found on your own, such as the example above. As long as you choose carefully and focus on high dollar items, your hourly earning rate can be significant. Inventory comes to you, so you save time with your sourcing efforts. Also, selling items for others can help build your eBay feedback and sales numbers to help you reach Top Rated Seller.

There are a few downsides to consignment selling. The most frustrating is that people usually think their items are worth more than the market will bear. It can often be awkward to have to explain to a family member or friend that just because they bought that purple widget in 1970 for $400, it is only worth $25 on eBay today. Also, you can end up doing the work of listing the item and it doesn't sell.

After many years of selling on eBay, I will only sell items on consignment if their value is over $500 and I feel sure they will sell. Otherwise, I try to buy the item outright from the person and take full responsibility for reselling it on my own. This can eliminate a lot of drama and hurt feelings.

Visit eBay here for more information on becoming an eBay Trading Assistant and earn money selling items for other people.

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How Local Attorneys Can Help You Make Money on eBay

How to Promote Your eBay Trading Assistant Business

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Beware of eBay Trading Assistant Scam

I’ve seen this scam several times with my clients, and last week, they hit me. The scam goes as follows:

You will receive an email like this, usually from a web based email account like Yahoo, Hotmail, or Gmail. It is usually in broken English with incorrect grammar. Below is the exact email I received:

I found your profile using eBay Trading Assistant Program and I'm offering a long term cooperation to you. I've agreements with different outlet stores in different states, that allows to get the brand new products for a much lower price. I've many business partners in different states, they help me to buy / ship off stuffs and they check its condition for some % from my profit that I get when I sell all this stuff using Ebay service. We ship completely different types of products (from ice skates to binoculars), the average price of the items is $300-$600. We usually use FedEx delivery service to ship off the packages and USPS (rarely). I'd like to know what is your fees structure. I usually choose money transactions through MoneyGram or Western Union as a payment method, because it's the most effective way for me and it's easy to send. It would be great, if you could provide this money-sending service for me. I'm really interested in cooperation with you. Let me know, if we can start immediately.

Sincerely,

Basically this person wants YOU to list items, send them money for the inventory, and then they will ship the items when sold. What’s really going to happen is that unsuspecting sellers will send them money and list items, then when a sale is made, there is no item shipped. Sellers will have to refund money to the eBay buyers. Another red flag is the use of Western Union or Money Gram. Never ever transact business with someone you don’t know using this service.

I knew what was going on here, so I sent the following reply, not expecting an answer:

Dear Sir,

Wow, this sounds like a fantastic business opportunity! I just need a few things from you before we go any further.

Your full name, address (street address, no PO boxes), and social security number or EIN, which ever you do business under.

A copy of your current driver's license.

A landline phone number where you can be reached.

We run a background check on all consignment clients and must be able to verify your identity, business address, and telephone number.

The business name you operate under, what city and state you are registered in, and a copy of your current business license.

We charge 25% of the sale price, and your eBay fees and Paypal fees will be deducted separately. The fee structure differs based on the sale price of the item. This usually comes out to about 60% of the sale price.

As soon as I get the requested documents from you, (you can just scan and email them, or fax to XXX), I will have my attorney draw up the paperwork / agreement and have it Fed Ex'd to the address you provide.

Looking forward to doing business,
Suzanne Wells

Of course, by adding words like “background check, business license, and attorney” you won’t hear from them again. Maybe if these crooks get enough of these types of emails they will go away. And in the event you get a response with any information you can verify, contact the authorities who handle fraud.

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How Local Attorneys Can Help You Make Money on eBay

Sounds weird, right? How can an attorney help you with your eBay business? This isn't about paying them to set up an S Corp for you. This is about tapping into THEIR customers and making money from THEIR clients.

Attorneys who specialize in bankruptcy or estate settlement will have clients who either need money or have items to sell. By partnering with attorneys in your area, these attorneys can refer business to you. If you sell on consignment, you can make a nice commission selling items for people who are in the process of filing for bankrupcty, or who have estates (used and vintage items, possibly antiques) to sell.

The only way to have a successful eBay consignment business is to treat it as a business - to have a steady stream of repeat customers who depend on you for helping them turn their items into cash. Selling on consignment for your family and friends doesn't really work. There are too many emotions involved and usually not enough merchandise to make it worth your time. eBay selling may seem easy to you, but most people won't take the time and effort to learn how to do it.

There are other types of businesses you can partner with such as charity thrift shops and small mom and pop type operations just to name a few. It costs these businesses nothing for you to try to sell their items online. The key is that you (the consignment seller) will only spend your time trying to sell items that you KNOW will sell. Sometimes, you will have to say "no" because the item is not profitable and you are not going to spend your time trying to sell it.

I can speak from experience here. I have a consignment contract with a local Humane Society to sell items from their thrift store. I have been educating the staff on the types of items to pull out and set aside for eBay and Amazon sales. I can get 5 - 10 times more for an item than the thrift store can get because if their limited foot traffic. I drop by the store about twice a week, pick up the items, take a look around, and list the items on eBay for them. The staff loves to see me come by because I usually bring them a check! And I love working with them because most of the items I choose will sell for between $50 and $200. So I can make $20-$30 an hour selling items for somebody else who has a plentiful supply - I don't have to go out and cherry pick these items myself from all over town.

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How to Promote Your eBay Trading Assistant Business

The eBay Trading Assistant program provides templates for marketing materials including flyers, business cards, and even scripts for radio commercials. Sign into your TA account and look for the Tool Kit on the left side of the page.

Print off the business cards and keep plenty of them with you at all times. You never know when an opportunity will present itself for you to hand out a business card.

Always enter restaurant giveaways - those bowls they have at the register where you can drop in your business card. Try to get it in there facing out if it is a glass container. Passersby and restaurant employees will see your card.

Post flyers on bulletin boards in high traffic areas. (Always ask before posting a flyer on a bulletin board.) See if you can post them at your gym, church, dry cleaner, Laundromat, library, grocery store, break room at work, or clubhouse. Ask your friends to place them in their break rooms at work and their church.

Promote your business using social media sites such as Twitter and Facebook.

Partner with local businesses. Talk to owners of consignment stores, thrift stores, boutiques, or retail stores and ask them if they have someone selling their merchandise on eBay. You may be able to strike up a deal where you sell their merchandise for a commission.

Also check with your dry cleaner to see what they do with unclaimed items. You may be able to work out a deal where you sell the better unclaimed items for a commission.

Give plenty of cards to connectors and explain your TA business. Connectors are people who know lots of other people and are good networkers. Examples include realtors, teachers, public officials, volunteer workers, receptionists, bank tellers, little league coaches, etc. Think of people you know who come in contact with lots of other people every day, and may see an opportunity to connect you with someone who could use your service.

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