You know how to move items on eBayhow to write good auction descriptions, set a price, and take enticing photos. There are plenty of people out there who'd love to pay you for those skills.
A 2004 Nielsen survey found that the average American household has more than $2, 200 worth of unused stuff lying around: computers, cell phones, cameras , jewelry , and more. (That was the purchase price; the secondhand items in decent condition are probably worth about a thousand bucks.) Multiply that by the number of households in your area, and each street becomes a hidden gold mine.
You can build your eBay business by selling items on consignment for people who are either unfamiliar with eBay or who don't have time to list and manage auctions on their own. Instead of hunting down suppliers, you can have suppliers come to you. You run the auction and claim a commission when the item sells. You can choose from several different selling-for-others options.
eBay has a program for consignment sellers, called Trading Assistants (TAs). It doesn't cost anything to join, and it's easy to qualify for the program; once you do, eBay includes you in its directory of trading assistants so that other eBayers can find you. You also get a logo to include in your listings, which gives you some marketing reach; eBayers who buy from you might also ask about your TA services.
To become a TA, you must be a registered seller and meet these criteria:
You must have sold four or more items in the past 30 days.
Your feedback score must be 50 or higher. (That's total feedback, not feedback as a seller.)
Your positive feedback rating must be 97 percent or better.
Your eBay account must be in good standing.
It's possible to become a TA by buying enough items to get your feedback score up to 50, then selling four items and signing up, but it's a good idea to have some real selling experience before you take the TA plunge. You'll be offering your services as a seller to other people; to get repeat customers, be sure that you're an effective seller before you start.
To sign up, from the eBay home page, click Services Trading Assistants Create/Edit TA Profile. Your profile includes your phone number and location (folks looking for a TA search the directory by Zip code); items you specialize in selling; a short description of the services you offer; and your fees, terms, and conditions.
Note: You don't have to be a registered TA to sell consignment items on eBay. You can sell items on behalf of other people at any time. Registering as a TA just makes your consignment business more visible by listing it in the TA Directory.You can become a TA the moment you meet eBay's criteria. Before you set up shop, however, you need to make a number of decisions:
Drop off, pick up, or both? How will your clients get their items to you? Some TAs have a storefront where clients can drop off items. Others let clients bring items to their homes . Still others prefer to go to the client's house to pick up items. Each has its problems: renting a storefront is expensive and may not be cost-effective when you're starting out. Letting clients bring items to your home is convenient , but many TAs aren't comfortable giving out their home addressespecially when their home is full of valuable items to sell. Picking up items means the hassle of driving all over the map to meet with prospective clients. (And most clients will want your contact information before you drive off with their stuff, so print up a batch of business cards with a physical address on them.)
To specialize or not to specialize? If you've got expertise in a certain field or you've developed a successful selling presence on eBay for a particular kind of item, consider specializing in your consignment sales, as well. You've already got the buyers ; offer them more of what they love to buy.
How much will you charge? Many TAs charge around 20 to 25 percent of the winning bid, plus eBay and PayPal fees. Others base their fees on a sliding scale, much like eBay's FVFs. For example, a TA might charge 40 percent of the winning bid for items that sell for less than $50; 30 percent for items that sell for $50 to $150; and 20 percent for items that sell for more than $150. Research other TAs in your area to see what's competitive.
Minimum value? It's not worth your time to sell a lot of cheap items for a few cents ' profit. eBay recommends that TAs set a minimum value of $50 on items they'll agree to sell. Some TAs have raised the bar, setting a minimum of $75 or $100.
What if the item doesn't sell? If you list an item on consignment and it doesn't sell, the item's owner should pay the listing fees. But you've spent time creating and managing an auction; consider charging a flat fee for your services if the item doesn't sell. Many TAs charge an up-front fee of $10$15, which counts toward their commission if the item sells. Also, don't let clients dump their junk on you. If an item doesn't sell, reserve the right to dispose of it if the owner hasn't picked it up after a few weeks.
Think about these issues ahead of time. Check out other TAs' policies by looking them up in the TA Directory (click Services Trading Assistants Find a Trading Assistant). When youve done your research and planned ahead, you can write a good service description and set policies that will attract clients to your consignment business.
When you become a member of eBay's TA club, you get a "badge" to prove it. You can add the Registered Trading Assistant logo to your auction listings. Here's how:
Find your TA number .
After you've registered as a TA (Section 7.5.1), find your listing in the Trading Assistant Directory: from the eBay home page, click Services Trading Assistants, type your Zip code into the text box, and then click the Search button. When you find your own listing, click it. Your TA number is at the very end of the Web address for your directory listing, after this text: profile&profileId= . So, if the address for your eBay listing is contact.ebay.com/ws/eBayISAPI.dll?TradingAssistant&page=profile&profileId=123 , your TA number is 123. (In reality, the numbers are several digits longer than that.)
When you create a new auction, add the logo to your listing .
eBay provides HTML code to put the TA logo on your auctions. To add it, type the following code into your item description with one change; replace XXXXX with your TA number:
<center> <a href="http://contact.ebay.com/ws/eBayISAPI. dll?TradingAssistant&page=profile&profileId=XXXXX"> <b>I am a Trading AssistantI can sell items for you!</b> <br> <img scr="http://pics.ebaystatic.com/aw/pics/tradingAssistant/imgTA_88x33. gif" vspace="5" border="0" height="33" width="88"> </a> <br> </center>
This code displays the words I am a Trading AssistantI can sell items for you ! and the TA logo on your auction pages. Anyone who clicks the logo is taken to your listing in the TA directory.
WORD TO THE WISE Tips for TAs |
When you sell for others, you're putting your reputation on the line. Think ahead to minimize problems and keep your feedback rating high. Here's a list of best practices for selling consigned items:
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Your trading assistant logo can help you find clients already on eBay, but consignment sellers should look further afield to drum up business. There are many people out there who've heard about eBay but who, for one reason or another, will never even look around the site, let alone register or try their hand at selling. These people are perfect clients for consignment sellers.
Here are some ideas for bringing clients to you:
Advertise your services in local publications . Try running a small display ad or classified ad in your local newspaper. Trade papers, like a regional newsletter for antiques dealers, are also a good place to find clients with an interest in what you can sell for them. Weekly papers and regional publications can offer good rates.
Note: If you're a Trading Assistant who's also a PowerSeller, eBay will help you pay for advertising, reimbursing you for 25 percent of insertion fees through its Co-op Advertising Program (Section 7.6.2).Create flyers and put them up around town . Make sure you do this legally; many communities don't allow flyers to be stapled to trees, telephone poles, fences, and so on. You probably don't want to get the kind of free publicity that comes with a court appearance. Many bookstores, coffee shops , and convenience stores have bulletin boards you can use, but always remember to ask first.
Hand out business cards . Carry a good supply of business cards and be ready to pass them around. You never know when you'll meet a prospective client, from the line at the grocery store to your spouse's office party to the tag sales and auctions you attend looking for merchandise.
Offer a local seminar about online auctions . Contact your local community college to see if they'll host a course about buying and selling on eBay. You might have several class meetings or just one. Let your students know about your services as a Trading Assistant. You don't need any special certification to teach about eBayjust your own experience and business smarts. If you want the official eBay stamp of approval, though, you can take an online course to become an "Education Specialist Trained by eBay. " To sign up, go to www.poweru.net/ebay, as shown in Figure 7-15.
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One of the fastest -growing trends in online sales is the drop-off franchise . When you buy a franchise, a central company gives you permission to sell its goods or services in a particular location. Many fast-food restaurants operate as franchises; they're owned and operated locally but sell the brand of a national company. A drop-off franchise lets you run a consignment business.
When you open a franchise, you tap into a network of similar stores. The franchiser supplies you with a professional logo, software, marketing materials, and a store design, so you don't have to do any of that from scratch. Franchisers offer training and ongoing support. And as franchises multiply, your store will have nationwide recognition.
The catch is that it can cost a lot of money to buy a franchise: you'll have to pay a franchise fee as well as startup costs, which can easily add up to $80, 000 or more just to open your doors. And you have to do things by the book, buying supplies through the franchiser and following their prescribed business practices, cutting into your profits and cramping your style.
That said, drop-off franchises are booming across the country. In time, one or more franchise operations might develop the same brand recognition as the giants of franchising, like McDonald's or Subway. The following list shows some of the drop-off franchises now leaping out of the starting gate. All of them have information about franchise opportunities on their Web sites:
QuikDrop (www.quikdropfranchise.com)
iSold It (www.i-soldit.com)
Snappy Auctions (www.snappyauctions.com)
NuMarkets (www.numarkets.com/franchise)
Orbit Drop (www.orbitdrop.com)