selling for others - how much to charge

[kmg191]

Surely this topic has been covered but a quick search didn't turn up much for me.  Here's my situation.

I have been buying and selling for the past 18 years with the past 5+ as an ebay store. 3 of those years I have been selling for a friend at a 30% commission on the sale price.  Sometimes, with all the fees etc, it hardly seems worth it.  Now, some other people are interested in me selling for them.  Im not opposed to adding  more "clients" but I feel like I need a better fee rate than just a flat 30%.  Was actually considering raising it to 40%.  As you are all surely aware, the process of listing, managing and shipping items is time consuming.  I want to make it worthwhile for us both and be charge a reasonable, fair rate for my service.  Appreciate any insight.  

[dbmm-media]

80% plus all expenses

plus you hold the money for 181 days. 

[percgrabbe-0]

50/50 or why even bother?

[castlemagicmemories]

I understand some consignment shops charge as much as 50%.

Whatever you do, you need to have a contract, that you both sign and each keep a copy, so there are no misunderstandings later.  How long will you keep the money?  Paypal gives 180 days to open a case.  What will you charge.  Who will pay the fees.  And don't forget supplies, tape, boxes, packing materials, etc.

Many things to consider and address.

[keziak]

Something I didn't see mentioned: reporting. If your customer wants a report is it worth the effort to break down every expense (and even then some have to be questimates) or just report the item and sales price and "you get X" and "I keep Y and cover expenses"?

If Number Two in the contract list all the types of expenses so the client has a very clear idea of how expensive it is to sell online. 

Remember you are also going to be paying taxes on your share. Ouch. 

[tofu107]

dont bother with contract,who is going to  hire a lawyer ?

and holding the fund for 181 days,those who want to sell because they need the money,now not 181 days later .

One Ebay seller said it well,after all those troubles and bull**bleep**,why not just use the time to sell your own stuff.

[tofu107]

and he could ask you for your SS number so he can deduct your fees.

[roryriver]

That's what I prefer to do also. That way I don't have to worry about my consignee getting anxious if it takes to long to sell, or if I need to drop the price, or anything else that can go wrong.

[billythekid16]

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@tev4allwrote:

 I would rather purchase the item directly from the consignee/friend and assuming the risk of problems with a transaction than have a consignee/friend upset and lost.  

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I believe this would be the easiest option rather than doing all the other complicated math on how much of a cut you and the item's owner will get.

Simply play the role of Rick Harrison on "Pawn Stars."  If the owner does not agree to your buying price or you know the item is too difficult to sell on eBay, tell them "sorry, there is nothing I can do for you."

Honestly, I would never sell for others.  Ever.

[nawlinsron2]

I'd ask guaranteed 35% of estimated selling price...if it sells for less than estimate, that's show business.
You pay shipping costs from buyer's shipping expense. If you offer free shipping, roll that into the price.

Look at comparable sold listings to get estimates AND market activity.

[calntom]

After ebay fees, paypal, shipping, we do a 50/50 split of what is net profit from the sale. 

If the customer wants to be paid in cash, that is another 20% of their net for cash payment. 

[sin-n-dex]

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@kmg191wrote:

Surely this topic has been covered but a quick search didn't turn up much for me.  Here's my situation.

I have been buying and selling for the past 18 years with the past 5+ as an ebay store. 3 of those years I have been selling for a friend at a 30% commission on the sale price.  Sometimes, with all the fees etc, it hardly seems worth it.  Now, some other people are interested in me selling for them.  Im not opposed to adding  more "clients" but I feel like I need a better fee rate than just a flat 30%.  Was actually considering raising it to 40%.  As you are all surely aware, the process of listing, managing and shipping items is time consuming.  I want to make it worthwhile for us both and be charge a reasonable, fair rate for my service.  Appreciate any insight.  

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My fee is: Sale Price & shipping (subtract) all fees and expenses for that item (subtract) cost of the item (my shop has a cost of good sold on everything I take, they must receive that much if it sells) then (divide) the profit by half to share with the owner of the item.

For instance, if I sell a token for $20, and there's $2 in fees, and the cost of the token is $2, then there's $16 profit so I made $8 on the item.

We also have an agreement to share the losses, so if there's damage, lost item or SNAD type of issue, it's paid from combined profits 50/50 out of both our pockets.

I keep a spreadsheet with a dozen columns to calculate all of this, and we settle up once a month, or when the total owed to the shop exceeds x dollars as agreed.

Cheers, C.

[sin-n-dex]

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@lex-talonwrote:

Selling for others is not something I recommend at all. Have those people open their own Ebay account.

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I agree with this statement under certain circumstances... but consider:

1. Does the seller have lots of experience in dealing with sales

2. Make an agreement to deal with losses

3. Have a firm agreement with accounting to deal with expenses and profit

4. Make sure the item is in the seller's custody (I have a room in my house dedicated to eBay junk that my friends want me to sell... toys, comic books, computer parts)

5. Don't sell any highly scamable items and take precautions to reduce losses

Cheers, C.

[sin-n-dex]

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@tofu107wrote:

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@kmg191wrote:

Why not?  Whats the problem with doing that?  I haven't had any problems in the 3 years I've done it.  It's certainly not illegal or an ebay violation.  My friend works full time and has two young children.  She doesn't have time to learn ebay and manage sales etc.  

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buyers could have unreasonable expectations,if you charge 30 % plus expenses,Ebay takes 10% and Paypal takes 4%,then your buyer is getting 56%.

there could be charge back,returns,,how do you deal with returns?

some are grateful for whatever they can get,but some need more to pay their bills.

you just have to find out yourself and decide if it is worth it.

40% is kind of high,say you sold for $1k,they only get $600,you get $400,that sounds like an oink oink pig,UNLESS THE ITEM IS A PIECE OF TRASH AND THEY ARE GLAD IT IS SOLD AND THEY NETTED $600 

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You must think it's terrible I take 50% then.

However the shop (and any item owner) sets a fixed "I must have" amount, then I see if I can sell it high enough for the 50% of the profit to be worth my while. For the shop I sometimes sell items with little or no return (because of the work involved) to help them out move inventory. I get good items and make lots of money on some sales in exchange for doing hours of work to make other sales.

The computer parts I'm liquidating for my spouse's company though it's 50/50, as the items no longer have any value except in developing countries that don't have this technology.

Cheers, C.

[mr_lincoln]

@kmg191  I've done selective lots for other people, they have to be decent items otherwise its not worth the effort ... so on the rare occasion I do it I research well ahead of time.  Then, if I agree to do it:

1. I take full possesion of the items for the duration

2. 50/50 split AFTER all Fees and Expenses (I figure about 10% for expenses ON top of eBay-PayPal Fees).

3. I pay out once a month

[wfloridafinds]

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@kmg191wrote:

Why not?  Whats the problem with doing that?  I haven't had any problems in the 3 years I've done it.  It's certainly not illegal or an ebay violation.  My friend works full time and has two young children.  She doesn't have time to learn ebay and manage sales etc.  

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Wouldn’t charge any less than 50% of ending price (including fees and other expenses).

That is if i listed for others

But will never happen

i would rather buy the items myself if interested

doubt the poster u replied to meant it was illegal.

like u have had very few selling issues

but selling for others is talking all risks

what happens the day u get a CB? 6 months down the line?

and it happens to be an expensive item.

and u have already paid ur client

ur friend might be understanding but what about the others?

but to answer ur question again

50% flat rate...