Selling for others on commission - Help

[brucelovestheocean]

Hello,

I read a few old posts in this community about what sellers charge private clients to sell their items. Some content is quite dated. 

I have been selling for people in my community for a few years and would like to hear some current feedback from people like me who sell for clients on a commission basis.

Initially I was charging 35% after all fees are extracted. Buyer, 90% of the time, is paying for ship cost. So the fees extracted are eBay fees.

I am a one man show and as you are well aware - it’s a LOT of work. I also post many things which I see a zero return on also.

I have seen commissions in some posts where the seller charges 50%. That’s a bit to high for me to charge my clients. I’m trying to find a happy medium, if there is such a thing.

I just raised my commission to 40% but fear I might scare off some potential clients. Most of the items I sell are under $100.00 with some priced higher. I sell some in the range of $100.00 - $500.00 as well and I have a smattering of $1,000.00 and up. But I would say 90% of my items are in the lower range and run the gamut.

I’ve been tossing around the idea of a tiered structure as well. But not sure how I would create that structure. 

Due to current COVID climate selling on eBay has turned into a full time job. And in truth I find myself working a majority of my time. Which is ok. I’m just thankful I have this as a means to support myself.

So I would love to hear from fellow sellers some of your thoughts about how you charge your clients and also your thoughts on how to construct  a fair tiered commission structure.

in the meantime is 40% to much to charge? I don’t want to gouge my clients or scare them away, but most folks have no idea about what it takes to list an item on eBay. And more importantly what it takes to list lots of items and then manage everything.

Your thoughts are deeply appreciated.

Wishing you a Merry Christmas! 

Bruce

[toysaver]

I've had people ask me to sell for them but won't.  It's reported as income against your SS number and your responsibility when filing income taxes.  I don't think the 1099 implications are worth selling for anyone else. 

[therogue-trader]

That's an easy thing to solve, just get a receipt/invoice from the person you're selling for that shows you paid them, then report the relevant costs at tax-time with anything/everything else (shipping costs, ebay fees, etc.).  You're really just leaving opportunities on the table.

As for my thoughts on the thread-topic, I do take consignments, but only from those I already have a personal relationship with (friends/family and such).  Because of the already-standing relationship, I'm extremely flexible with my cut of the proceeds and simply ask them to tell me what percent or flat value they want to get out of their item.  Of course if the flat value is unrealistic based on the expected value of the item, I'll tell them that and it's up to them how they want to proceed, be it not sell the item or lower their requested flat value.  As for a more allowing a more general/open clientele, I'd say the amount you charge should depend on whether you or the buyer is the one facing any potential financial risk.  As for ideas on a potential tiered structure, decrease the % as the level of value gets higher or you could charge a flat value+?%.

[chapeau-noir]

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@toysaver wrote:

I've had people ask me to sell for them but won't.  It's reported as income against your SS number and your responsibility when filing income taxes.  I don't think the 1099 implications are worth selling for anyone else. 

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I'm not sure what these '1099 implications' are - commissions are simply deducted from revenue as business expenses. I charge flat 50%.

[1tuna]

.............general reply.........

something to think about is whether you want to be a seller or a lister.  I have sold plenty for friends of mine but all of that is at $1 no reserve.it does not do any good to list somethig and have it sit........in order to get a commissiion it has to sell today.

if you have ever been in the back room of an auction for box lots then you know that people need to let things go.

[soh.maryl]

Based on the Money Back Guarantee from eBay as well as the Paypal return schedule, I would NEVER do what you are doing.

Do you never have buyers who open an item not as described case with Paypal, which they can do up to 180 days?  

I don't sell any more, but if I did, I would either offer to teach those people how to do it and kind of mentor them til they get their feet on the ground, or I would back out gracefully.

[genv]

50% and if the person doesn't like it, they can list the items themselves, it's a free Country.

I've had $50 items that FINALLY sold for $5.00 YEARS after Consigned. Whoopee ! $2.50 for me. I've had LOSS, THEFT, etc. -I PAID- The Consignor was NEVER bothered, asked to repay ME. 

UNLESS it is GREAT STUFF... that SELLS FAST... for GOOD MONEY...

You don't NEED the bookkeeping & hassles of selling other people's stuff.

Go to yard sales, Thrifts where 'those' people dump/donate.

CHERRY PICK what YOU want to sell.

A LOT of 'Consignors will bring you 'stuff' THEY tried to sell already.

Dead, no interest stuff. And YOU get stuck, STORING.

Then, Lord forbid it SELLS after x time.

YOU 'gotta hope you can LOCATE it in 'storage'.

Hope it did not get soiled, or, degraded.

Fun, fun, fun !

I am cutting BACK on Consignment.

I ALSO tell them, IF there is NO INTEREST...

I will DONATE it & send you the Tax Receipt.

SICK of being 'free storage' & easy 'cash' income for others.

Let them sell it themselves or, hire a kid in their family.

I am working like a dog, and the 'Consignors' are enjoying Retirement.

[iart]

We've done this quite a bit in the past.

In the past.

You're right. It is a lot of work and the people we sell for are usually upset with the amount they get. Less headache and more profit selling our own stuff.

Now, we'll only do this for close friends and family. If we were to charge a stranger to do it, we'd probably ask for 60 - 70% of the sale price. Almost double what you're asking.

Another option would be to give lessons on how to sell on ebay. We've done this as well and charged $25 an hour for our time.

[janet9988]

Honestly, I would charge some kind of one time  listing fee and also a commission. That way you are not wasting your time if the item never sells.

[brucelovestheocean]

Thank you! I file eveything and require my clients to fill out a form. They are happy to....

[brucelovestheocean]

Thank you very much!

[luckythewinner]

Taking a commission means working for nothing if it does not sell. No thanks. 

Here's my response to people who ask me to sell for them:

• I must have the item in hand through the transaction
• They pay me $60 per hour to photograph and create the listing
• They pay 30 cents per month per listing in insertion fees
• They front me the cost of fees and shipping immediately
• They get the proceeds 180 days after the sale
• Loss, damage, and fraud are not my responsibility

This accomplishes my two goals - never saying no to a friend or relative, but never having to actually do it either.

[inhawaii]

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@luckythewinner wrote:

Here's my response to people who ask me to sell for them:

• I must have the item in hand through the transaction
• $60 per hour to photograph and create the listing
• They pay 30 cents per month per listing in insertion fees
• They front me the cost of fees and shipping immediately
• They get the proceeds 180 days after the sale
• Loss, damage, and fraud are not my responsibility

This accomplishes my goal of never saying no to a friend or relative, but never having to actually do it.

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I do the same.  That pretty much will discourage ANYONE from having you do it. 

[monster-deals]

My advice for you on how to sell for others is DON'T.

I mean I do it. Separate account and I do it by the hour.

Don't mix em. 

[donsdetour]

Hi:

Pay outs on item should never be in cash: you need such for your records.

Items should always be in possession of you: no items not in your possession.

Never give out your financial information to a potential customer: That is a common scam in this.

What happens if you get a return or worse scammed on an item and lose money and item (happens).

40 percent these days is a must due to the risks you are taking doing this.

A full signed contract should be done to protect you also.

Be careful I have seen sellers end up with charges and found guilty of selling stolen good doing this also.

It is a high risk thing to do. You can and will lose friends if things go wrong.