How to Start and Run an eBay Consignment Business

by
Edition: 1st
Format: Paperback
Pub. Date: 2006-02-17
Publisher(s): McGraw-Hill Education
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Summary

Make big profits on eBay with no upfront investment!Make thousands of dollars per week--with little or no financial risk--selling other people's stuff on eBay.How to Start and Run an eBay Consignment Businessexplains how to locate and work with consignors and successfully deal in the goods they want to sell, including collectibles, retail store closeouts, estate items, corporate merchandise, and much more.Find out how to get started selling on consignment, decide what kinds of items will be the most profitable, and set up your business. You'll get sample contracts, forms, and flyers, as well as tips on creating a web site, marketing your business, and automating day-to-day tasks. Whether you want to supplement your income or become a registered eBay Trading Assistant, you'll find everything you need in this helpful, step-by-step guide.

Author Biography

Skip McGrath, a longtime eBay PowerSeller, runs Auction-Sellers-Resource.com and publishes the eBay Seller's News, which reaches 40,000 people each month. His self-published books have sold more than 25,000 copies.

Table of Contents

Acknowledgments xiii
Introduction xv
PART I Setting Up Your Consignment Business
Why Start a Consignment Business on eBay?
3(6)
What Are the Benefits of Becoming a Trading Assistant?
4(1)
Are There Successful Consignment Businesses Operating Now?
5(2)
How Big Can an eBay Consignment Business Grow?
7(2)
Get Started
9(10)
Setting Up Your Business
10(1)
Naming Your Business
10(1)
Business Types
11(1)
Business Licenses
12(1)
Business Telephone
13(1)
Letterhead and Business Cards
14(1)
Computer and Software Resources
14(1)
Insurance
15(1)
Reference Material
16(1)
Record Keeping
16(1)
Taxes
16(1)
Legal Issues
17(1)
Getting Help
18(1)
How Much Should I Charge?
19(8)
Consignment Math
20(2)
Suggested Commission Schedule
21(1)
Flat Fees
22(1)
Your Unique Selling Proposition
22(5)
Find Consignment Customers
27(10)
Marketing Your Business
29(4)
Advertising
29(3)
Cold Calling
32(1)
Charities
32(1)
Estate Sales and Garage Sales
32(1)
Networking
33(2)
Presenting Yourself
33(1)
Creating a Presentation Book
34(1)
Public Relations
35(1)
The eBay Co-Op Advertising Program
35(2)
What Sells on eBay?
37(10)
What Sells on eBay
38(3)
Should I Specialize?
41(1)
Business and Industrial Category
42(1)
Go for Quality
42(1)
Other Considerations
43(4)
PART II Marketing Your Business
Sell Retail Store Closeouts
47(6)
What Types of Retailers Should I Approach?
48(3)
What Fees Should I Charge Retailers?
51(1)
Merchandise to Avoid
52(1)
Raise Money for Nonprofit Organizations
53(6)
Local Charities
54(2)
Working with Large Charities and Nonprofits
56(2)
The eBay Giving Works Program
58(1)
Conduct Estate Auctions
59(6)
Unofficial Estate Sales
60(2)
How Do I Contact These People?
61(1)
Official Estate Sales
62(2)
How Do I Contact Estate Attorneys?
62(1)
Marketing to Attorneys
63(1)
Other Considerations
64(1)
Conduct Bankruptcy and Repossession Sales
65(8)
Bankruptcy Auction Overview
66(2)
Marketing Your Bankruptcy Auction Business
68(1)
Police and Sheriffs' Auctions
69(1)
Distressed Companies and Corporate Downsizing
70(3)
Corporate Consignment Sales
73(10)
How to Find Big-Ticket Merchandise to Sell on eBay
76(3)
Construction Equipment
76(1)
Agricultural Equipment
76(1)
Medical Equipment
77(1)
Corporate Equipment Sales
78(1)
Other Considerations
79(4)
PART III Running Your Business for Maximum Profits
Set Up for Mass Production
83(8)
Increasing Your Selling Price
85(1)
Launching More Auctions and Launching Them Faster
86(1)
Charging Higher Fees
87(1)
Lowering Your Costs
88(3)
Automate Your Auctions
91(14)
The Need for Automation
92(1)
Auction Software
93(5)
Liberty4 Trading Assistants
93(1)
MarketBlast
94(4)
Auction Management Services
98(7)
Mpire
100(1)
Auction Wagon
101(4)
Auction Photography and the Photo Studio
105(8)
Taking Good Photos
106(3)
Camera Selection
106(1)
Take Sharp Photos
107(1)
Composition
107(1)
Get Close to Your Subject
108(1)
Lighting
108(1)
White Balance
108(1)
Your Studio
109(2)
Image Management
111(1)
Photo Selection
111(2)
Set Up a Consignment Storefront
113(8)
What Are the Advantages of a Storefront?
114(1)
What Are the Disadvantages of a Storefront?
114(1)
What Kind of Store Should I Open?
115(1)
Store Layout
116(5)
How Much Space Will I Need for All of This?
116(1)
Commercial Lease Checklist
116(5)
Fees and Costs
121(8)
Costs of Doing Business
122(1)
Cost Control
123(1)
Advertising
124(1)
eBay Fees
124(1)
Employment and Employee Costs
125(4)
Employee Leasing
126(1)
Independent Contractors
127(2)
Organization and Record Keeping
129(6)
Getting Organized
130(1)
Consignor Records
131(1)
Financial Record Keeping
132(3)
Write Your Business Plan
135(6)
Your Business Plan
136(2)
Business Plan Basics
136(2)
Your Financial Plan
138(3)
Invest in Your Business
141(6)
What Sort of Investments Should You Make?
142(1)
Raising Money for Your Business
142(1)
Types of Capital
143(1)
Retained Earnings
143(1)
Debt Capital
143(1)
Investment Capital
144(1)
Where to Find Capital
144(1)
How to Find Venture Capitalists
145(2)
eBay Consignment Franchises
147(6)
Franchising Basics
148(2)
Franchise Checklist
150(1)
A Franchise Alternative
151(2)
eBay Stores and Web Sites
153(6)
eBay Stores
154(1)
eBay ProStores
155(1)
ProStores Express
156(1)
ProStores Business
156(1)
ProStores Advanced
156(1)
ProStores Enterprise
156(1)
Web Sites
156(3)
Reduce and Control Your eBay Fees
159(6)
eBay Listing Fees
160(1)
Reserve Price Auction Fees
160(1)
Final Value (Selling Fees)
161(1)
Optional Feature Fees
161(1)
Controlling Your eBay Fees
162(1)
Which Optional Fees Are a Good Value?
162(3)
Become an Auction Master
165(12)
Standard Auction
166(1)
Reserve Price Auction
167(1)
Dutch Auctions
167(2)
Fixed Price Listings and BIN
169(1)
Private Auctions
169(1)
Listing and Pricing Strategies
169(4)
Reserve Price Auctions
170(1)
The $1 No Reserve Strategy
171(1)
List at Cost
172(1)
Fixed Price Listing
172(1)
Best Time to Launch Auctions
173(4)
Other Considerations
174(1)
Scheduling Your Auctions
175(1)
International Auctions
176(1)
Research: The Key to Profits
177(8)
Ask the Seller
178(1)
Searching Online
178(1)
The eBay Search Engine
179(2)
Searching More Effectively
179(1)
Locating Auctions That Include a Specific Word
180(1)
Narrowing Your Search
180(1)
Narrowing Your Search Even More
180(1)
Finding Listings with One of Multiple Words
180(1)
Locating Listings with One Word, But Not Another
180(1)
Third-Party Online Services
181(1)
Andale
181(1)
Terapeak
181(1)
Offline Research Tools
181(4)
PART IV Building Your Sales on eBay
Create Killer Listings
185(8)
Writing Dynamic Headlines
186(3)
Keyword-Rich Headlines
188(1)
Checklist for Headlines
189(1)
Selecting the Right Category
189(4)
List in Two Categories
190(1)
eBay Specifics
191(2)
Write Winning Auction Descriptions
193(12)
Features Describe; Benefits Sell
194(4)
Power Words and Emotional Appeal
198(1)
White Space and Boldface
199(2)
Increasing Sales with a Call to Action
201(1)
How to Kill Bids
202(3)
Build Your Credibility to Build Your Business
205(10)
Keep Your Auctions Clean
206(2)
Building Trust and Safety
208(7)
eBay Trust and Safety Tools
210(1)
Third-Party Trust and Safety Tools
211(4)
Give Superior Customer Service
215(6)
Consignor Service
216(2)
eBay Bidders
218(3)
Business Policies to Build Your Business
221(6)
Shipping Policy
222(2)
Payment Policy
224(1)
Return Policy
225(2)
Promote Your Auctions with Special Features
227(6)
Keyword-Rich Titles
228(1)
eBay Subtitles
228(1)
Bold, Highlight, and Border
229(1)
The eBay Gallery
230(1)
Featured Plus
231(1)
Super (Home Page) Featured
231(1)
Other Features
231(2)
The Consignment Seller's Web Site
233(10)
Do-It-Yourself Web Site
234(4)
Marketing: If You Build It, Will They Come?
238(1)
What Should I Put on My Web Site?
239(4)
Bring It All Together
243(10)
What Are the Keys to Success in the Online Consignment Business?
244(2)
Can You Give Me a Step-by-Step Plan for Success?
246(1)
What Are the Real Secrets to Success on eBay?
247(6)
PART V Appendixes
APPENDIX A Sample Agreements, Forms, and Letters
253(18)
Consignment Agreement
255(3)
Consignor Inventory Form
258(2)
Alternate Non-Consignment Contract
260(4)
Sample Auction Report
264(1)
Sample Sales Letters to Prospective Consignors
265(6)
Letter to an Estate and/or Bankruptcy Attorney
266(1)
Letter to Local Business Owners Outlining Your Services
267(1)
Letter to a Retail Storeowner
268(1)
Letter to a Charity
269(2)
APPENDIX B Advertising Posters
271(8)
APPENDIX C Resources and References
279(6)
eBay and Consignment Selling Online Resources
280(4)
News and Information
280(1)
Escrow Services
281(1)
Authentication and Grading Services
281(1)
Business Plans
281(2)
Consulting
283(1)
Legal and Tax Advice
283(1)
Online Fraud Resources
284(1)
Suggested Reading
284(1)
APPENDIX D Consignment Startup Checklist
285(4)
Glossary 289(8)
Index 297

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