Thursday, May 2, 2013
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.
Get consignment clients by being listed in my eBay Seller's Consignment Directory.
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