eBay

natalie*rose*designs · ‎12-08-2020

Somebody asked me if I could sell some things for him, I'm not sure if I'm going to bother but was wondering what would I charge him? He said he would "pay me for my time." He's looking for someone already established on ebay because he's heard if you're new your listings won't get seem as much as an established seller, top rated. So f I were to sell on my ID, what about taxes when the 1099 comes in? He has some trinkets that I don't know a lot about that he wants to sell, but I'd rather sell the stuff in his B&M store, set him up online to sell this stuff, maybe I could set up listings for him on a regular basis. I don't know if he'd go for this so I'm just looking for ideas for a price to charge.

evry1nositswindy · ‎12-08-2020

I wouldn't. The risk is all yours. A return could come after you have already paid that person. If the items are worth selling, you might offer to buy them outright and sell them on your own.

evry1nositswindy • seller since 2013
Volunteer Community Mentor

kensgiftshop · ‎12-08-2020

@natalie*rose*designs wrote:
So f I were to sell on my ID, what about taxes when the 1099 comes in?

You would be responsible for the income taxes, since it'll be on your account.

Another thing to think about, if the buyer pays with Pay Pal, they have 180 days to file a claim for a refund, do you think they would pay up after that time?

Have a great day.

glasser · ‎12-08-2020

Selling by consignment is quote common. Some people make a living at it. Typically, you would charge a percentage of the sale just like an auction house or eBay for that matter. That fee could be sliding based on final value if you so choose or just straight up. I would think something in the neighborhood of 25% would be fair ( also depends if you are handling shipping and final value fees). As you know, if you sell an item for $10 or $100 it takes the same effort to get things posted and serve customers.

As for taxes talk to an accountant. I would think your taxable amount is your fee since that's your income. How to handle that another question that needs input.

Could be a good way to expand your business without investing in inventory or experimenting with new categories.

flo_mingo · ‎12-08-2020

I have found that selling for others has never worked. They are never satisficed with the price and never consider my time and fees to eBay and pay pal. I always tell people that I am glad to teach how to list their own items. as far as being new everyone has to start some where.

reallynicestamps · ‎12-08-2020

EBay used to have a program for consignment sellers, I even remember a store near where I used to work, that had a big eBay sign outside.

The thing that killed it was that the consigners, who lacked any knowledge of retail nevermind online retail, thought the seller's fees were too high.And the sellers found they were not charging enough.

You would want.

The products should be in your hands. If not, your shopkeeper might sell the same product you just got an order for, and forget to tell you. You get the Defect.
You write the title and description and attach the photos (he can take the photos though) and you charge an hourly rate for that. The minimum wage here is 23c a MINUTE. And you are providing skilled labour, so $25 an hour?
You keep the books and there is a separate PP account for the consignor that is attached to a bank account in your name. You pay him from either the PP account or from the bank.
Is he registered to collect sales taxes? Are you? Talk to a tax accountant about what is needed in your state.
You package and ship. Remember damage in transit is a real thing. You get paid a wage for this too.
All eBay and PP fees come out of his share of payments.
If you are being paid a wage for the hands on stuff, you could accept as little as 25% of the profit for your commission. If not, 40 to 60% is more reasonable. This also takes into account the occasional Dispute and refund. You are taking responsibility for the listing and sale, so you should also take responsibility for failed transactions.

And that is why most sellers will not accept consignments.

inhawaii · ‎12-08-2020

It's hard enough finding something to sell for YOURSELF and make a profit, let alone have to cut in a second person.

Good luck and stay safe!

Sea Of Love - The Honeydrippers

wastingtime101 · ‎12-09-2020

@natalie*rose*designs wrote:
He has some trinkets that I don't know a lot about that he wants to sell, but I'd rather sell the stuff in his B&M store, set him up online to sell this stuff, maybe I could set up listings for him on a regular basis. I don't know if he'd go for this so I'm just looking for ideas for a price to charge.

Go with your instincts and get him set up with his own eBay account. If you work for him by putting up listings then don't log in from the same IP address you use for your own account. If he gets banned you'll be toast by association, so only work on his computer from his place of business.

The consignment route rarely works out well. If you go that way make sure you have a contract that outlines every "what if" scenario and make sure the value of his items are worth the work. I wouldn't do it for less than 40-60%, depending on what I was selling.

Walk without rhythm, it won't attract the worm.

luckythewinner · ‎12-09-2020

He said he would "pay me for my time."

This offer makes it incredibly easy then. negotiate an hourly rate, and bill him for your time.

I'm not sure if I'm going to bother but was wondering what would I charge him?

Charge him an hour rate that reflects the value of your time, and then add a premium for the value your eBay reputation adds to the equation (he has already indicated this has value to him). Also, don't forget to charge him for the insertion fees you are using on his behalf every month and all the fees your incur.

So if I were to sell on my ID, what about taxes when the 1099 comes in

You will need to account for the money he pays you for your time on your taxes, as well as for any money that goes into your account when items sell (whether or not you get a 1099 from eBay). I believe you may also need to issue this person a 1099-MISC if the money he gets from the sales exceeds $600.

If you do not have the expertise to do this accounting yourself, you should figure the cost of this into your agreement with him.

Also remember that a credit card chargeback can come months later, so if I were doing this I would make him understand that I would be keeping a percentage of the money in reserve against future claims.

And if you are smart, you and he will also have to agree than any dispute will likely result in a full refund, loss of postage costs and return shipping and some fees - and the is responsible for making you whole for all of that.

I'd rather sell the stuff in his B&M store, set him up online to sell this stuff, maybe I could set up listings for him on a regular basis

This sounds like a far simpler plan, because he will have to deal with all the taxes (probably easier since he has a B&M store and presumably a business and an accountant) as well a and refunds and any disputes. Plus, you will get paid for your time regardless of whether his trinkets sell or not.

luckythewinner · ‎12-09-2020

Not to mention that any pretense that you are doing this as a hobby or that you are simply selling your personal items at a loss goes out the window completely - you would be a business enterprise in the eyes of your State and the IRS.

rec78 · ‎12-09-2020

I would not do it. The cost, the hassle, the time, and the possibility that you friend will no longer be your friend after all is done. I would say you have to charge 25% at least. Your friend watches the auctions and sees his item sell for say $60.00. Till you take off ebay and paypal fees, taxes and whatever else charges, you have $48 left. Even if your fee is only say $8. This leaves your friend $40. If you think that your friend will be happy with $40 after the item sells for $60 then it may be OK. But after a week, the buyer decides to return the item, you then have to get the $40 back from your friend and return the payment to the buyer and take the loss for the postage cost, and maybe a negative feedback.

dhbookds · ‎12-09-2020

Who is going to mail the items? Need to consider that..........if he's going to do it.......and fails to do it on time or correctly, that will reflect on YOUR stats. Also, remember that if you use your computer to list for him......you will be considered "linked" and again, if he fails to mail/gets kicked off...........your account could be sanctioned also.......

I'd also consider the pricing......do the math on what you would earn on a $10 sale, $20 sale...........is less than 50%, after fees, worth your time/trouble?

I'm one of those that thinks the "what ifs" are overblown on Ebay........but in this scenario of just listing for him......they would give me pause.

nobody*s_perfect · ‎12-09-2020

IMHO the only way to sell somebody else's stuff is to buy it and then list it as your own.

You get to deduct the purchase price on your taxes, and you are in control of the packaging, shipping time, buyer negotiations if any, etc. If it's items you don't know much about, ask him to provide key info for the descriptions.