Help! Consignment Commission Question

[sandrasophiasa]

 I just started consigning items and have a question:

I sold an item for $50. Based on a recommended commission schedule, the end result is $30/$20. Who gets what?? (Me and the consignor).

Thanks!

[siayan]

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@sandrasophiasa wrote:

Hmm, ok...I appreciate the advice but was just looking for a straight answer BASED ON MY QUESTION...not providing links, getting legal advice,etc.... Only one person (Jen_proudleowife) was the only straight answer.

Geesh, people love to complicate things. Keep things simple... 

Thanks anyway!...

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I aaume that is why Leo married her.

[myboardid]

I'm glad you got the answer you were looking for, but these threads are read by many users who might like to have more information about your subject than just the specific question you asked.   Broadening the topic could just help other users who are considering selling on consignment.  I hope your situation works out to be successful for you. 

[castlemagicmemories]

With all due respect, all that should be specified before the item is even listed.  You need to make it clear how this will work when you accept an item on consignment.

How long will you list the item?

What happens to the item if it doesn't sell?

How long will they have to pick up the item if it doesn't sell

What will happen if a SNAD is filed?

What will happen if a PP case is filed?

What will happen is a CC chargeback is filed?

This means you could get stuck for a refund somewhere down the road.  The money won't be free and clear until at least 6 months.  

The fees, and expenses of selling should all come out of the buyer's proceeds.

I have read that consignment shops may charge as much as 40 to 50%, I believe.

But all this needs to be in an agreement between you and the consignor, that is signed.

There is a lot to consider here.  Good Luck!

[retrose1]

OP, does the consignor know that you were planning to keep a percentage of the selling price?  If not, you are going to have a disagreement on your hands.

I occasionally sell on consignment and my cut is 50/50 and I pay the fees.  I keep the item in my possession at all times and if the item needs specialty packaging, the owner should provide it.  And the consignor knows all this and signs a contract before a listing is ever made.   Also, I make sure that the consignor knows the posibility of selling and the price to expect before they give it over to me.  I do not want to hear about how the owner expected 10x what their common item got because they think it's a valuable antique.   There are other details, but those are the basics.

[castlemagicmemories]

And this is why OP got more detail than he asked for.  Asking that question post sale indicated there were other issues.  If OP as agent doesn't know, how will the consignor know?

Because as you say, all of this should be clear in the contract they both sign when the item is turned over to the OP.

This avoids the disagreement you mention can occur due to unrealistic expectations or just not knowing beforehand what rules will govern the transaction.

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@retrose1 wrote:

OP, does the consignor know that you were planning to keep a percentage of the selling price?  If not, you are going to have a disagreement on your hands.

I occasionally sell on consignment and my cut is 50/50 and I pay the fees.  I keep the item in my possession at all times and if the item needs specialty packaging, the owner should provide it.  And the consignor knows all this and signs a contract before a listing is ever made.   Also, I make sure that the consignor knows the posibility of selling and the price to expect before they give it over to me.  I do not want to hear about how the owner expected 10x what their common item got because they think it's a valuable antique.   There are other details, but those are the basics.

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[jonathankirkland]

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@sandrasophiasa wrote:

Hmm, ok...I appreciate the advice but was just looking for a straight answer BASED ON MY QUESTION...not providing links, getting legal advice,etc.... Only one person (Jen_proudleowife) was the only straight answer.

Geesh, people love to complicate things. Keep things simple... 

Thanks anyway!...

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Your original post was extremely broad and general. Without plenty of details, it makes it very diffcult for us to properly address your concern and offer the proper guidance. This is why people will ask many questions and offer advice that you may not be interested in.

Please try not to be offended and take it as an attack. And keep in mind those of us posting here are real people with feelings who are generously donating our time in attempt to assist others without receiving any benefit from it other than the satisfiction of trying to help out a fellow ebayer and human being.

[stitchesandseamsct · Accepted solution]

Hey Im Frank. I did some consigning this year. Please, don't sell yourself short. The people bringing you stuff are not putting in any work and are looking at the items they bring you as just extra cash. A 50/50 split is a fair MINIMUM for me, considering I have to live with their junk while it sits around waiting for it to sell. Don't forget, all the photography, all the packaging, and shipping, none of which is assisted by the person bringing you stuff. DONT SELL YOURSELF SHORT!!!

[mannusma0]

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@sandrasophiasa wrote:

Hmm, ok...I appreciate the advice but was just looking for a straight answer BASED ON MY QUESTION...not providing links, getting legal advice,etc.... Only one person (Jen_proudleowife) was the only straight answer.

Geesh, people love to complicate things. Keep things simple... 

Thanks anyway!...

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Oh wellsies.

You got more than what you asked for. I guess your entitled to a refund.

oh wait- it’s free advice from your peers that have done more consignment than you.

And you’re welcome

[zzydny]

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@southern*sweet*tea wrote:

Don't forget someone has to pay fees. All of this should have been worked out beforehand in your contract.

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Precisely what I was going to say.  Don't list until you have it set in stone with the person you are selling for.  And you need to plan in advance about fees, shipping, gas to go to the PO, etc.

I have consigned for people on eBay and it has generally not been a good thing. 

[sandrasophiasa]

Excellent! Thanks, Frank! 🙂

[sandrasophiasa]

Excellent! Thanks, Frank! 🙂

[city*satins]

i don't know if i'd want someone opening accounts in my name and all that.

I've never actually opened an account on behalf of someone, but I've sat next to them and walked them through it.   Most already have an account anyway - but strictly for buying or only having tried one sale and then decided it was too much work.    Most also already have a Paypal account.

Speaking here only of the people I've personally worked with who've asked me to sell for them.

the consignor might as well sell his own stuff if all is set up.

the idea of consignment is for someone to sell your stuff without being involved in it.

My experience with consignors is that its not the accounts that is deterring them from selling, it's the labor - staging the merchandise, measuring, photographing, writing the listings, dealing with the buyers, getting the stuff out the door.   All of that is taken care of by the service provider (me)

The reaction I've had from consignors who've agreed to do it this way (not all will) is typically

Wow. This is great. I hand you my stuff and money keeps magically appearing in my Paypal account!

Over the years, I've done it several ways - this is the way I finally settled on and to-date, I haven't had one single consignor fail to pay  me.  

[city*satins]

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@sandrasophiasa wrote:

Hmm, ok...I appreciate the advice but was just looking for a straight answer BASED ON MY QUESTION...not providing links, getting legal advice,etc.... Only one person (Jen_proudleowife) was the only straight answer.

Geesh, people love to complicate things. Keep things simple... 

Thanks anyway!...

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Well, let us know in 6 months how simple it turned out to be.

FYI - If I were giving a straight answer, I would have answered the opposite of Jen_proudleowife.  I'd have said $30 you, $20 consignor.  That's the typical breakdown in the local clothing consignment stores near me.  60/40  (60% to the consignment store, 40% to the consignor)

So ....

[klassic*kids]

I have done consigments.  I split the profit (after fees are out) 50/50.  I tell them in advance how much I am going to list it for so we have an agreement on that and I also tell them at that time what the fees will be being deducted from it.  Lastly, it is a verbal agreement but I tell them the possibility of a NAD being filed.

Good Luck.

[skatefool]

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@sandrasophiasa wrote:

 I just started consigning items and have a question:

I sold an item for $50. Based on a recommended commission schedule, the end result is $30/$20. Who gets what?? (Me and the consignor).

Thanks!

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USPS gets $6.25

Ebay gets $5.00

PayPal gets $1.75

You get $18.50

The consignor gets $18.50