How to Set Up a Consignment Business on eBay - dummies

How to Set Up a Consignment Business on eBay

By Marsha Collier

Consignment sales are a popular way for you to help non-techie types by selling their items on eBay. Lots of sellers do it, and several retail locations base their business on it. Essentially you take possession of the item from the owner and sell it on eBay.

You’re responsible for taking photos and marketing the auction on eBay — for a fee. In addition to the money you earn selling on consignment, you also get excellent experience for future auctions of your own merchandise

To set up your business for consignment sales, you should follow a few guidelines:

  1. Design a consignment agreement (a binding contract), and send it to the owners of the merchandise before they send you their items.

    Doing so ensures that all policies are set up in advance and that no questions will arise after the transaction has begun.

  2. Have the owners sign and give the agreement to you (the consignor) along with the item.

  3. Research the item based on past sales so you can give the owners an estimated range of what the item might sell for on eBay.

  4. Photograph the item carefully and write a thoughtful, thorough description.

  5. Handle all e-mail inquiries as though the item were your own.

    After all, your fee is generally based on a percentage of the final sale.

Traditional auction houses handle consignment sales in a similar fashion.