Running Your Trading Assistant Business

Running an eBay Trading Assistant business is just like running your own auctionswith the additional responsibility of finding clients who have merchandise they want you to sell. Let's take a look at what a typical consignment business involves.

Finding Clients

To sell items on consignment, you first have to find some clients. Now, if you have a drop-off location, you can sit behind your counter and wait for your clients to come to you. (Although a little advertising and promotion probably wouldn't hurt, of course.) If you're running your consignment business out of your home, however, you'll need to do a little advertising and promotionand make sure you're listed in eBay's Trading Assistant Directory.

Taking Possession of the Merchandise

When you agree to sell an item for a client, you need to take that item into your possession. You're in the consignment business, after all; you need to have the item in your possession in order to sell it. Plus, if you don't have it, you don't know for sure that it existsor that your client hasn't disposed of it elsewhere. Remember, it's your name on the eBay auction; you'll be held responsible if the item isn't actually available for sale.

If you're running your Trading Assistant business out of your home, you'll probably make your initial contact with a client over the phone. One phone call is all it takes to get a feel for the client, find out what he or she wants to sell, and determine whether it's worth your time. You should also take this opportunity to tell your prospective client about you and your business, discuss fees, and work out any other details. Then, if all goes well on the phone, you can arrange for the client to drop off the merchandiseor for you to pick it up.

Note

You don't have to accept everything that your clients want you to sell. It's okay to turn away goods that you think you'll have a hard time selling or that you think are worth considerably less than the client doesor that you think may have been obtained illegally.

While you can try to get all your clients to drop off their items at your home, chances are you'll have to do some merchandise pickup yourself. Going to a stranger's home can get a little dicey, so you'll want to play it as safe as you can. If you have a relative who happens to play football, take him along with you. Otherwise, judge the location carefully, and if you're at all nervous, arrange to meet the client at a neutral (and safer) location, like a local coffeehouse or fast-food joint.

Managing the Auction Process

Once you have the merchandise in your possession, selling it is just like running any auction. You'll need to do a little research to learn more about the item and determine the appropriate starting price. You'll also need to photograph the item and write the item listing. There's nothing special you need to do at this point.

Packing and Shippingand Settling with the Client

At the end of the auction, you receive payment just as you would with any other auction. (The payment comes to you, not to your client.) Then you pack and ship the item, and get ready to settle things up with your client.

Once you've received payment from the buyer, you need to calculate your final fees and create an invoice for the client. Start with the final selling price, subtract your commission, subtract all the eBay and PayPal fees, and the balance is what you pay the client. If it's an occasional client, cut a check right then (or within the time frame specified in your contract). If you have an ongoing relationship, you may want to arrange payment for all that client's auctions at the end of each month.

That's really all there is to it. You run your TA auctions just like you do your personal auctions. The only difference is that you're selling somebody's else's items, and you're only taking a percentage of the final selling price.

The Absolute Minimum

Here are the key points to remember from this chapter:

• Many eBay sellers make a good living by selling other people's merchandise on consignment, as an eBay Trading Assistant.

• When you join eBay's Trading Assistants program, you are automatically listed in the Trading Assistants Directory.

• TA's can pick up merchandise from their clients, or open a drop-off location to receive merchandise.

• All serious Trading Assistants have a contract for their clients to sign.

• TA fees range from 10% to 50% of the final selling price.

• A quick way to get started with consignment selling is to buy into an eBay drop-off store franchise.