posted on March 8, 2006 07:30:54 PM new
Unless an item is very simple (closed box, show tickets, etc.) or for a charity, it's a sliding scale of marginal rates:
35% of the first $500
25% of the next $500
20% of the amount over $1000.
For very expensive items, a flat 17/20 (20% if PayPal, 17% otherwise).
I pay all fees other than FVF (including, in my case, bonding fees of 1%).
Minimum expected sales price (unless they're long-term customer or other extenuating circumstances): $75.
I technically have a $20 minimum commission, but seldom invoke it, as I think it's my fault if an item that I accepted sells for too little to get me my $20.
posted on March 8, 2006 09:03:33 PM new
I've gotten rather hardnosed, having just made a few hundred dollars the hard way, listing all that survival stuff for the British gent. I take 35% of the GROSS, then take all fees out of what's left, including PayPal and relistings that don't sell. He gets the remainder, which is usually no more than about 55% or so. Still a hard way to make a buck.
And then there are the complaints (although few) about the title I've chosen (the title that will grab the eyes rather than the technical "title", and the horrid hassle of packing 20-pound items to ship. And answering allllll those questions for seller when I'm selling guy stuff for someone else. (Do you ship to Malta? Duhhh, that's international, isn't it, and don't I ship internationally?) Tonight I'm thinking NOT worth my time!
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posted on March 8, 2006 10:09:50 PM new
In the olden days (like 1992 or 1993) before ebay but still online, I used to accept consignments for auctions I ran. These were the days before paypal, so there were a lot fewer fees. It still was a pain in the butt, and I eventually stopped taking consignments. I "briefly" was a trading assistant, but after a few telephone conversations, decided it wasn't worth the hassle. If I could easily sell $500 items it would be worth it, but let's face it, most items are going to be much lower. Then, you deal with sellers who have unrealistic expectations of what the item will sell for, and complaints when something isn't right. I actually talked to a stamp dealer a couple of years ago, realized that he was expecting a lot more than what it would sell for, and decided it wasn't worth dealing with. I'm pretty happy selling my own stuff.
posted on March 8, 2006 11:03:36 PM new
I found it very time consuming and very NOT worth it to sell for others. They want their stuff on immediately and do expect unrealistic returns on their things. I sold for one lady who thought her stuff was worth the book value of which I found outrageous. I told her the items could go real well or they could flop and never to expect her book value. I found it very tiring to list her things keep up with fees and cost and give her a list when I had to wade through all the different fee places like Paypal, ebay and Vendio to find her fees so she had proof of them. I said NO MORE! Won't do it again unless they are willing to split 50/50 and then it would still be not worth it to me.
What gets me is why don't they just learn how to list it themselves, everyone who wants me to list for them has computers and digital cameras they are just too lazy to do it themselves in my opinion. I am always hearing I don't have time. Neither do I now that I know how it goes selling for others..
Boy I sound cynical. Guess I am.
**************
Without my ignorance, your Knowledge would be meaningless.
posted on March 8, 2006 11:10:55 PM new
Yes, the other hard part is the record-keeping--what we grossed for, say, 10 items, what the fees and my percentage are out of it, then keeping track of the PayPal fees when item is paid for, and then waiting waiting waiting until they've left feedback before I know the sale is truly complete--then giving $$ to the owner of the items. Really, it makes me tired just thinking about it.
Add to that the research time figuring out what the aitch this odd item is the guy wants me to sell for him, and what category or categories it should be in, and how much to start, and what to call it, etc.
I'd only do it in the future if I had nothing to sell of my own and happened to be in a lull.
posted on March 9, 2006 01:51:54 AM new
I sold some stuff for a friend a few years ago and charged her no less then $10 per item and then it was a scale from 30% down to 20% for over $100 items, I think and she paid the fees which weren't as high then. I made her a nice sum considering she didn't have a clue what she had or what it was worth (husband's mother's estate).
I said I would never do it again and I have not except for a neighbor who wanted me to sell a funeral urn (unused thank goodness)of all things. I listed it 5 times with no winners and I'm going to give it back to her and just eat the fees. Not worth the time to figure them out and worth the lesson to not back down on my "No more" policy.
A friend (Tom I think you know who) said she hear of a service that will list for free. She said it was new and something like an Ebay franchise?? I think she was dreaming!!!
posted on March 9, 2006 03:37:12 AM new
I'm sure there were FVF but I still think she was dreaming!!! If she tracks them down, I'll let you know (right after I unload some of my junk)
posted on March 9, 2006 03:49:12 AM new
Technically, I guess I LIST for free, as I don't charge listing fees. There is simply no way that any sane business model would do this for free, unless they're gouging on shipping (another issue entirely).
According to SquareTrade's reports (I don't track this myself, but I guess their numbers should be close to correct), my average monthly sales price between October '05 and March '06 has varied between a low of $161 and a high of $561, which is why it is possible to make a buck (sometimes two).
Regarding the consignor's expectations vs. book value vs. eBay value, well, that's my job to explain to them before I accept their items. If people are unreasonable at drop-off, they'll only be worse later on, so I make sure that they understand the probabilities before I print up a contract.
posted on March 9, 2006 12:27:47 PM new
First I explain that there are no guarantees of sale. Then explain that all ebay fees are their responsibility. And usually will go in an see what similar items are selling for. 99% of the time, there is someone selling the same thing. That way, you can show what something is selling or not selling for. I usually state you can figure your item will go for around that amount, but again no guarantee.
I get 20% of the gross with a maximum of $100.00, plus all ebay fees. Lets say ebay fees are $24.95. That would be $100 + 24.95 for a total of $124.95.
Also let them know that they are still responsible for ebay fees if their item does not sell.
The point is you need to set your fees at what you will be confortable with.
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Many misleading tricks in 2006. The new Demomoron slogan.
posted on March 9, 2006 01:16:24 PM new
A key point of selling for others is to always have possession of the item the consignee wants sold.
Too many of the "my feedback is ruined" stories are from inexperienced consignment sellers not having the item, having sold it for less than the consignee liked, and then learning that the consignee no longer wants to sell it (or they just plain changed their mind, or cousin Charlie wanted it). Or not having been told about the slight dent or small chip "that doesn't really affect the value" except to the collector who just bought it. You can almost smell the PayPal chargeback!
posted on March 9, 2006 02:56:55 PM new
agitprop has it right! A friend just told me two days ago about something that happened to her. Someone asked her to sell for them a dining-room set, nice one, that they no longer wanted. My pal did all the work, photographed it, helped them weigh the items, listed it--you know the drill. They wanted to keep it until sold. The auction was about 3 days old and she called to talk with them about something and mentioned the current auction for the furniture. The consigner said "Oh, it was in our way in the garage so we gave it to a thrift shop." My friend was really p.o.'d for a number of reasons, not the least of which was that she'd have taken it for her own if she'd known they were going to give it away. That's the danger of not having the item in your possession.
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posted on March 9, 2006 03:10:40 PM new
I have had bad experiences in the past selling for others but I must be eager for more, since I've agreed to help a friend dispose of some telecom equipment being discarded by his startup company. He's sanguine about the prospects on eBay and expects me to do 99 cent no reserve auctions. I'm charging 10 percent with no maximum, plus eBay fees. No PayPal. Cashier's checks only.
I know it sounds like I'm not asking for enough money but this stuff should go into the four figure range.
fLufF
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[ edited by fluffythewondercat on Mar 9, 2006 03:11 PM ]
That's pretty much what my "friends and family" commissions are (although I don't charge them fees). If you haven't worked with advanced telecom equipment (although you might well have), see if your friend can pitch in with the technical descriptions. I've spent more time than I feel comfortable admitting to reading the manuals for things I'm selling, and you will get some very specific emails with telecom.
Fortunately, the biggest-dollar item is still a current product, so the descriptive hype and technical data is on the company's website. Others have lifted it from there in selling this thing (it's a phone switch).
I just need to cobble the description together since the box (literally about the size of a breadbox) could be one of eight different configurations that the company sells. I'll get it approved by the guy who ordered the switch in the first place. He ought to know. I hope.
Thanks for the pointer to the contracts. I had been wondering about that.
posted on March 9, 2006 09:33:20 PM new
I almost forgot.
Have all payments from the buyer go directly to your seller. Then have your seller pay you. It is a very bad idea to collect the money and give your seller the difference. Too much potential for bad things to happen.
Never accept PayPal on your account. If there is a chargeback, you want it to be your sellers problem and not yours.
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Many misleading tricks in 2006. The new Demomoron slogan.
posted on March 10, 2006 12:00:47 PM new
A friend (Tom I think you know who) said she hear of a service that will list for free. She said it was new and something like an Ebay franchise?? I think she was dreaming!!!
LADY JEWELS DO THEY PICK UP FOR FREE AS WELL?? I'M IN COUNT ME IN!!! SO INNN
WHERES THAT LINK LET ME HIT THAT BUTTON I AM SO IN!
Nothing comes for free except pfishing email.... wish it did but
posted on March 10, 2006 12:25:19 PM new
Last year or is it 2 years ago ,an outfit in California which sells for others received venture capaital money to expand,they are offering free shipping -all you have to do is to take your junk/treasures to any UPS dropoff and they will wrap and ship for you.
Whatever happens ??
We had a thread on this free shipping business.
/ lets all stop whining !! /
posted on March 10, 2006 12:30:03 PM new
I can see how a seller can pick up the listing and final value fee,if she takes your item worth say 25-50 and list it at one penny and charge enough on shipping .
The sellers from China and HK do that,they will list an item at one penny and charge anywhere from 6-15 dollars shipping.
The problem is that they accept Paypal and there is no seller protection .
/ lets all stop whining !! /
posted on March 10, 2006 01:27:51 PM newLast year or is it 2 years ago
Try four years ago.
AuctionDrop founder Randy Adams was quietly eased out the door last March as the vulture capitalists took over the company.
Trying to salvage what's left of the business plan, I suppose.
They'll never recoup their $17 million investment, though. Auction drop-off services seem to work best as a cottage industry. Hardly the full-blown sexy Silicon-Valley-but-about-to-take-over-the-world startup that AuctionDrop was meant to be.
My local UPS Store, which has an AuctionDrop sticker in the window, sends people to me. They hate AuctionDrop, as corporate forced it on them, and they make no money on it. Consignors have to hand over thier credit card information to list an item.
posted on March 10, 2006 01:48:41 PM new
There's a lot of problems at the UPS store - Read here:
http://www.thebrownboard.com/
I am sure that profits have really decreased, they used to (as MBE) charge much higher shipping fees. Now, they are pretty much a drop off point for people shipping packages and preparing online.
[ edited by ebayvet because of the stupidity of not using real html for adding a link!]
[ edited by ebayvet on Mar 10, 2006 01:49 PM ]
posted on March 10, 2006 01:50:39 PM new
Stone, you said [i]"Have all payments from the buyer go directly to your seller. Then have your seller pay you. It is a very bad idea to collect the money and give your seller the difference. Too much potential for bad things to happen.
Never accept PayPal on your account. If there is a chargeback, you want it to be your sellers problem and not yours."[/i]
That might be okay if it's a friend you're selling for. Part of the service I provide for CUSTOMERS is insulating them from chargebacks, scam payments, etc. If I get stuffed, I get stuffed; it's not their problem unless they mislead me about what the product is, how well it works, etc.
Keeping track of consignor payments is tough enough, having to dunn consignors for the money would be a huge waste of time. Unless you're doing this as a favor to a friend, you should decide if you're ready to do it as a business, or just goofing around. I would say that a sizeable percentage of my clients don't want to bother with PayPal, if I told them that they would have to accept payment and then pay me, they'd turn right around and walk out the door.
posted on March 10, 2006 03:16:03 PM new
Last month I started selling a partnership that deals in high ticket items i.e. chainsaws, circilar saws, computer LCD moniters. All of this stuff is quality brand names. They pay all of the fees & I take 10%. We have put most of it on auction , but now we are putting those that didn't sell the first time in my store. This a lot cheaper that relisting with a reserve. In the past 3 weeks I have sold aboout $3000.00 of their stock. I figure I am getting about $30.00/hr for my time. That isn't too bad for an old goat.By the way all of these items are NIB.
Life Is Too Short To Drink Bad Wine
[ edited by sanmar on Mar 10, 2006 03:17 PM ]
posted on March 10, 2006 03:19:48 PM new
New in a sealed box should always get a reduction in commission as the work is minimal. Ditto for concert tickets and other things that require a simple scan and a description of what it says on the ticket or box.
posted on March 10, 2006 04:54:11 PM new
Sanmar,
I hope you are holding back a percentage of the proceeds (above and beyond your 10%) for 3 months or more.
Intl credit card chargebacks can come 3-6 months later.
/ lets all stop whining !! /
, and the horrid hassle of packing 20-pound items to ship. And answering allllll those questions for seller when I'm selling guy stuff for someone else. (Do you ship to Malta? Duhhh, that's international, isn't it, and don't I ship internationally?) Tonight I'm thinking NOT worth my time! 
