I have been asked to sell some things for a friend and would like to know what is "normal" for Commissions. Is anyone willing to share what they charge?
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Consignment shops will generally charge 40% in my area. You, as a seller, have to choose what is right for the client to be able to make $ and come back to you often & not want to find it better to sell on ebay on their own. Having you take care of the listings is to your clients advantage because they can focus on gathering more goods. Ebay is a numbers game. That being said, you need to have a good understanding of what kind of return you expect. I have a client that I have a great split with. I collect 2/3. He collects 1/3 + S&H. I pay for all other charges. His listing close 40% - 49%. I know how much to expect per sold listing. For these items, at his supply level, these numbers work. I make about 55% - 57% of net. I have the greater risk. If none of his items sell, I give them back and he can do with them what he will. That would be a loss of money to me and no loss to him at all. I have another client that will start moving cars through me. The arrangement will be a good deal different. Cars cost more to list, don't sell as often but, can net more. Still, I have to consider what he can do on his lot without me, on ebay without me, or with salespeople. This means, I don’t charge as much but, I transfer more of the risk to him. For general items, I prefer the 1st example I gave you. It really encourages the client to bring the merchandise. Why would they not? There’s no risk to them. The more they bring, the more they make. Again, eBay is a numbers game. List a certain amount. Sell a certain amount. The key is having the right level of profitability for the right level of sales. You’re already making a great move in keeping your costs down by using Auctiva. That’s great but, the product you accept must be saleable. In this pay structure, you need to not be afraid to turn away what will not sell or sell for enough. Always look to see what activity an item or category has on eBay and other sites. We do not sell on eBay alone. We go where the action is for what we have. It is important that you establish the point of sale location(s) with your clients. A client that is set upon only having one point of sale may be limiting your profitability and may require a different profit split.
Hope this helps.
Hope this helps.
A good place to check out what other consignees charge is to visit eBay's Trading Assistant Directory. You can see what other consignment sellers charge in your area. You can also add yourself to the directory to get some more business!
Thanks so much for the information. It was very helpful. I also checked for traders on ebay as jbill suggested. Gives me a place to start. Thanks!!
quote:Originally posted by isdaman:
Consignment shops will generally charge 40% in my area. ...
Thanks, glad to help.