Learn to say "No."

   Don't take products on consignment that will earn you just a few bucks at most. You must consider the time involved to sell something. Sure, one cannot always predict what an item will sell for, but if you hone your research skills you'll often be able to learn what similar items sold for in the past.

   You can actually increase your consignment profits by selling fewer items if you selectively refuse the low-priced items. You have more time to devote to the higher-profit items and you'll get more of them listed because you aren't wasting time with low-priced junk.

You Must Control Your Sales

   Make it clear to whomever you sell for that you need the option of listing or not listing an item and selling it must be based on your discretion. Explain to them that you don't charge a fee if the item doesn't sell but that they still must pay the listing fees if the item doesn't sell. There are several ways to structure a consignment deal. We only do them where the owner pays all listing fees whether an item sells or not, but they only pay us a percentage if the item sells. You should also research other trading assistants in your area to see what types of fee structures they charge for their services to make sure you are competitive.

   When you go to pick up items for sale, you might want to take everything the owner wants you to take or be selective at that time. Probably the primary deciding factor is how much room you have at home to store the unsold items while you decide which of them you want to sell. If space is a premium, you'll need to be selective in what you take.

   We always ask that the owner make us a list of all items we get from them to sell. The owners should also keep a copy. This helps eliminate misunderstandings later. You shouldn't make the list yourself. You should also have all of your fees and policies in writing and leave a copy with the owner so there's no misunderstanding in that area either.

   When selling for family and friends, we typically offer to list one to three items initially. If we can choose these items from a large assortment of items they want us to sell, so much the better.

   I write a lot about computers and eBay. My syndicated eBay newspaper column has trained thousands of readers. One selling strategy I stress in my column and in my Direct Marketing eBay techniques that I teach is that your consignment business is the easiest place to get inventory. Make sure, however, that you are selective in what you sell so that you don't become a sucker who sells only low-cost items for others.