How To Start an eBay Consignment Business

If you have been selling on eBay for any period of time, you’ve probably been asked “Will you sell these dollies my grandmother made for me back in 1923?”, “I want at least $200 for this purse, that’s how much it cost me back in the ’80’s.”, “I have a sack of old clothes I want you to sell for me, I’m sure they’re worth a lot.” If you sell on eBay, I know you have heard a few questions like these. Everyone has something they want you to sell. In this post, you will no longer question if you should tell people you sell on eBay. You’ll learn what to tell people when they ask you to sell something.

• How much to charge on consignment 
• What to accept and not accept
• How to keep track consignment items
• When and how to pay your clients 
• The best way to tell your clients how your business works

eBay Consignment

Have you been thinking about eBay consignment? I recommend treating this like a business anytime you are selling things for people, even if it’s close friends or family. Follow my eBay consignment guide, and you won’t regret selling other people’s things. When selling for other people, you need to make it clear exactly how much you charge, what you accept and don’t accept, and the details. It’s up to you whether you want to make a contract for people to sign. Here’s a guide and a checklist to get some inspiration here.

Make sure you make it clear you cannot guarantee a profit price for any item. The most important thing: Make sure your clients know all the details before they give you any items so that no questions arise once you’ve already listed their items.

How Much to Charge

I charge my clients 50% after fees and shipping. (So a 50/50 split after all fees) I require a PayPal account for everyone I sell for. I definitely recommend using PayPal. It is so easy to just send everyone their profits each month rather than having to grab cash or a check. Some sellers like to charge 30% or 40% if the item is over $300. Or 30% and a flat fee of $5-$10 per listing. Of course, you decide what works best for you.

Ask yourself: What price point is worth my time? Some eBay sellers only accept items they can sell for $50 or more. It only takes me about 10-15 minutes to list and ship each item, so I don’t have a minimum price point. Just decide how much you want to make per hour. 

Ask yourself: What kind of items do I want to sell? Do you enjoy listing clothes, shoes, vintage items, vehicles, furniture, or toys? I accept almost any item that I can ship USPS, but I enjoy listing clothes, shoes, bags, and jewelry the most. It’s important to accept what you like so (1) you enjoy your work and (2) you don’t spend long researching the items out of your comfort zone. The faster you are at listing, the more you make per hour!

More questions to ask yourself: Do I want to ship large items? How much storage space do I have? How will I pay my clients? How will I keep track of sales? How will I keep track of my inventory?

What To Accept / What Not To Accept

This is what I tell my clients:

• I accept only freshly cleaned name brand items in great condition with no rips, stains, or holes. So nothing with wear. If you sell bags, make sure you are clear that you only accept authentic items.
• I don’t accept any large items or furniture, some vintage items (vintage items don’t sell great on eBay), or wedding dresses. (I have had a couple of wedding dresses listed for awhile. They just don’t sell for what people want.)
• If there is something I can’t sell (because of wear) I ask them if they want it back or if they don’t mind me taking it to a donation center. (100% so far say just donate it.)
  

A lot of times people come to me wondering how much they can get for their beloved jacket they paid $300 for 40 years ago. So instead of guessing and getting their hopes too high, I quickly do some research and tell them what the average selling price is. Find out how to do research on eBay here. Taking a minute to do research is definitely a life saver. It lets people know immediately what their item is worth and they won’t be disappointed later if it doesn’t sell for what they want.

Order Post Cards or Flyers

I recommend ordering postcards or flyers from Vistaprint or your favorite printing shop that explain how much you charge, what you accept and don’t accept, and the details. It is very important to make everything clear before they give you anything to sell. It makes it so easy when you can just hand them all the information in a cute card or paper. (Use this link for $20 off $40!!) I am in the process of having my post cards redesigned from this graphic designer on Etsy. She just designed my new business cards and I love them! Check out her Etsy shop here.

Right When You Get Items

Put every item your client gives you in a spreadsheet. This is so important. Record keeping is key to selling things for other people. You don’t want them questioning if you lost something. You may even ask them to write a list of all their items for their personal records. Then go though each item to make sure it is in great condition or that it works. You want to make sure it’s worth your time listing. I try to list all their items within that month.

How & When To Send Money

I send all payables the 1st of each month. (That means I start calculating my month end a couple days before then!) I send a copy of each clients spreadsheet to them along with a little message telling them how many items they sold and how much they made. Then I PayPal them the money. PayPal is free to send money and free to sign up.

Final Encouragement

Selling on consignment is fun. It’s fun because you don’t have anything invested in your inventory! When you do buy to resell: Don’t invest too much on each item, because you make money at the buy. List items just a little more than what they have been selling for. Keep your inventory organized as you list. Ship items that sell every night. Keep your shipping cost low, this is how you make more. Retake your pictures if your items are not selling. One thing to remember: if you don’t list, you don’t last. The more you list on eBay = the more you sell = the more you make. So don’t give up! Keep listing because eBay works.

Do you have any tips for selling for people? 

I was not sponsored or gifted these products. Some of the links are affiliated, which means that by purchasing I make a small amount, at no additional cost to you. Thank you for supporting me!