posted on March 17, 2000 06:55:32 AM new
Friends and others are asking me to sell their items. What is the suggested commission most sellers use? If item does not sell do you charge for taking the photo, auction charges etc? I would appreciate feedback from experienced auction sellers. Thanks
posted on March 22, 2000 04:36:28 AM new
I sold items for others last year at a 15% commission. With my experience doing it, I would have to say that was not enough. If I do it again, I will charge 20-25% commission for my time and efforts. I would also charge a minimum of $5.00 for any item that did not sell. I did not do this last year and I spent a lot of time on items that never sold and therefore did not get anything in return for my time and equipment. You need to figure how much time it takes you to list the item and monitor the auction in order to be reimbursed at a reasonable hourly rate.
posted on March 22, 2000 09:30:37 AM new
Hi Noelle991
jpgunlimited's advice is sound. The thing to remember, though, is that you can do anything you wish.
When I first found the auctions in the summer of 1996 (ancient history) I did a little selling for an antique store.
The deal we had was that the items owner provided me the net cost of the item, which could be its wholesale price or its purchase price. If the purchase price was unknown, we both had to agree to a net cost entry for the item.
To that, the cost of listing the item was added plus the end of auction fees, actual shipping fees, etc.
This seller, at the time a non-computer using antique store, provided the service of packaging and shipping and provided a good description of the item.
My job in the venture was to create the digital images, create the auction and place it.
As both efforts were roughly equal, we then split what ever profit was generated.
This approach made sense because the seller was a "business" and had a real financial "investment" in the items as they were bought for resale.
If the item's owner just a consumer trying to dump old stuff, a bit different approach is possible. The deal is something like a twist on the consignment store approach in which the store and the seller split the final proceeds 50-50.
In this deal, you take on the costs of listing the item and that "matches" the cost of the item provided for resale.
This approach is effective when the owner considers any return from the item "found money." You also can exercise the ability to reject items.
If the item being sold is obviously much more valuable than the listing time and expense -- say a full set of Spode China -- you might come up with a "fair" price ... i.e. the price a dealer in that business would pay to obtain the items for resale.
A reasonable offer on your part then would be to "guarantee" that amount plus about 10-20 percent of amount over that "wholesale" price realized (after you deduct listing costs.) After all you should gain the majority of the profit above that amount because all that profit is realized because of your labors and efforts. The seller/consignor in that circumstance is guaranteed what a legitimate dealer would pay plus... all for doing nothing.
There is one more model that you could offer or adopt. Jpgunlimited hinted at it.
That is to just charge for your time and effort.
A typical listing with digital photograph and basic HTML will take about an hour to do. Considering the investment you've made in the digital camera/scanner and computer, your Internet connection and your knowledge and skill, I'd say you could probably afford to list a single item for a person for $30.00 cash up front plus 5 percent of the final sale price (for EOA fees and administration). This "service" would include shipping the item and cutting a check to the "seller" for the full proceeds less shipping fees and the 5 percent EOA fee.
BTW: I'd add another $5.00 for each standard jpg image in the auction listing.
Also, you'd be advised to gain possession of the merchandise so that shipping, etc. would be covered.
Finally, if you don't like any of these models, invent one of your own.
One final point when dealing with goods owned by others that you are selling online through the auctions ... get your agreement, whatever it is, in writing.
I think the real thing to keep in mind is that it is up to you to decide what you'll do and for what price.
Pat
PS: You'll need to get insurance coverage for your home or business to cover the values of the items you accept for sale, regardless of the model you adopt. You might check out the BidSafe Insurance product at auctions.com.
