Starting an eBay Consignment Business
Published July 25th, 2007
Selling items through eBay on behalf of other people is not a new idea. In fact there have been numerous attempts to set up nationwide chains of consignment stores. Most of these have been less than a success. However, this does not mean that there is not scope for individuals to build a profitable business from consignment selling.
It’s actually quite simple to do. Apart from some knowledge and experience of selling on eBay there is very little else that you will need to get started. You will find it useful to have a digital camera and possibly packaging material.
The first step will be to spread the word in your community that you are offering this service. 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 pounds, 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 £25 or £50, or whatever you feel comfortable with. This way, you’re not working yourself to death for a few shillings 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.
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