Go into your consignments with eyes wide open. Consider what you must do when you take on the responsibility of selling your aunt's Elvis Presley limited edition, silver-rimmed salad plate, #454321 out of only 17 million produced:

• Pick up the item or have the owner bring it to you
• Take one or more pictures
• Use software to prepare the picture for efficient online viewing
• Write the auction listing
• Post the auction
• Answer questions throughout the auction's duration
• Answer the owner's questions about how much money they've made as the auction progresses
• Handle end-of-auction emails and invoicing
• Collect payment
• Wrap and mail item
• Post feedback
• Compute the owner's income, less all eBay and PayPal fees
• Pay the owner the net income less your hard-earned percentage or fixed fee

Details, Details, Details

   If the owners of your consignment items completely trust you (assume they don't) you can just pay them without worrying with all the details but you run the risk of hurt feelings if someone thinks you're keeping more than you should. You will keep things more professional, more accurate, and less anxious if you document where every cent of the sale went. (The documentation is a must when tax time rolls around.) An auction's costs are comprised of the auction listing fees, the final auction fees (based on the final selling value), the PayPal fees (if the buyer paid with PayPal) including PayPal's extra charge if an international buyer paid with PayPal, and your fee.

   About the only thing the owner should do is prepare the item for sale by cleaning it up and repairing any damage if they have the skills to make the repair. It helps if the owner writes a few notes about the item if it's something you are unfamiliar with, especially when it comes to how old the item is, where purchased (such as in a foreign country), and other details that might help you write a more interesting auction listing.

Take Possession of Anything and Everything You Sell

   When anybody wants you to sell something, always take possession of the item before you post the auction on eBay. Your description will be far more accurate when you look at and write the listing. Never trust the owners, even reliable ones, to write an item's description of its condition and features.

   When you have the item in your possession, you will see all the good and bad points and you'll write the auction accordingly. Your eBay reputation, made clear to the world through eBay's feedback system, is on the line. That means your income is on the line too.

   Throughout the auction process, interested bidders will ask questions. The only way to answer with full accuracy is if you inspect the item yourself and the only way to do that is to have it in your possession. Taking possession is also the only way to ensure that the item is still around when the auction ends; the owner can't sell it when you have it.

   I write a lot about computers and eBay. In addition, one of my primary strengths is teaching how to implement simple Direct Marketing techniques that maximize your eBay sales. One way I learned so much about selling on eBay is by doing it day-in and day-out. Once we ran out of inventory we sought out our family and friends a few years ago. We're still selling for them.

   Hopefully, the tips I provide here and in our other guides will help you maximize your consignment business and reduce the number of mistakes you'd otherwise make by learning what we did first.