Starting an eBay Consignment Business

One of the hottest trends over the last few years with regards to eBay is consignment. Consignment is when one person sells and item for another person, and keeps a portion of the selling price as their fee. Real life consignment shops usually take in used clothing, shoes, furniture, and other items, and sell them in their store, keeping part of the money for themselves. You can do the same thing with eBay, by taking in items that other people want to get rid of, selling them on eBay, and keeping a portion of the selling price.

It's actually quite simple to do. Even if you have one of the major eBay consignment businesses in your area, a large portion of the populace will not be aware of it. This means that there is no need to feel that you cannot compete!

You'll need to advertise your business in order to find people who want to sell their items through you. The local newspapers
and thrifty ad magazines are probably your best bet, although advertising on websites for your local area, and on bulletin boards around town are also great ideas. You could also have fliers printed up and pass them out on car windshields (make sure to ask permission from store managers, first) and leave stacks of them by cash registers
in convenience stores (again, asking permission.)

Your fliers should mention that you are a full-service eBay consignment business. You will take the item, photograph it, list it on eBay, take payment, and handle shipment. You take a percentage of the selling price or profit (usually 20-35%) and they get the rest.

In order to ensure that you don't spend a lot of time listing items that will only sell for a few dollars, you should be sure to have a minimum value. You could say that you will only sell items that you believe will sell for at least $50 or $100, or whatever you feel comfortable with. This way, you're not working yourself to death for a few cents per item.

You'll need a fairly large area to work in. You'll have to have room to safely store the items that are being sold, a good area to take the photographs, and a place to package items for shipment. This means you might need to devote an entire room in your home to your business, especially if it takes off. You'll need shelving to hold the items, boxes, and such, and a table for taking the pictures and packing boxes. Don't forget, you'll need some way of protecting valuable and delicate items, like newspaper and bubble wrap.

It's actually a very simple and straightforward business to start. It takes a bit of work, but it is a great way to make money on eBay without having to pay for inventory up front.