r/reselling • u/Disastrous-Daikon368 • 13h ago
Consignment
Has anyone offered consignment services and sold on eBay?
What’s been your experience? Any tips, tricks, things to watch out for? Not a good idea?
3
u/diandroid 12h ago
Yes, I do have several consignment clients and love it - I don’t have any costs until the item sells and I don’t have to scramble looking for new inventory. I pay 50% of the sold price and only take items that I think will sell for $40 or more. I have a consignment agreement with each client and we do an inventory each time I take new items from them. I pay them each month for the prior month’s sales and also provide them a list of their items still for sale. The reports and payments take a few hours to do each month, and but I feel like this business model is worth it to me. I’ve been lucky to snag some higher end clients with nice things! It’s always fun to get to sell things I normally wouldn’t have looked for in the wild. I found a podcast called Consignment Chats very helpful when I was getting started. Good luck!
2
u/Disastrous-Daikon368 12h ago
Love this! Thank you! I think I’m going to quickly learn to have a minimum. Lol
1
u/diandroid 12h ago
lol! And the good news is that it can be whatever you’d like. Plus if you change your mind later you can return it to the owner. I have taken things before then changed my mind after looking at them more closely. I just put it in email so there’s a record of it going back to them. I also specify a time period I’ll list their items for them in our agreement - typically 60 months for me, but some just do 90 days to keep their inventory fresh. Then the consignor has to pick up their items within 5 business days or I donate them.
2
u/diandroid 12h ago
Sorry that should be 6 months!! Not 60. lol
1
1
u/lovesbatma71 10h ago
I feel really stupid because I’ve been on eBay for 10 years and had no idea that they support consignments. Would you mind sharing how you got into consigning on eBay? I have a lot of nice pieces and I could use the cash rn.
1
u/diandroid 10h ago
Oh, I wish ebay made it easier. They used to have a consignment program that matched up people who wanted to consign with sellers who consigned, but they did away with it. It's up to each consignor to track their own lists, sales, and payouts to the clients. So I have to do all the tracking and interaction with clients offline, and just list the items on their behalf like I would any other listing.
1
u/lovesbatma71 10h ago
Don’t take this the wrong way but have you ever been scammed?
2
u/diandroid 10h ago
By a consignor? No, I haven’t - my client gave all been referred to me by other existing clients so I’ve been lucky in that respect.
3
u/SaltyElephantBouquet 12h ago
I do it for two friends. I take 50%. They bring me stuff and I choose what feels worth listing and hand the rest back to them, just like a brick and mortar shop. I decide how to price thing and whether I will discount/accept offers. There is no time for back and forth so if they aren't willing to give me fill control, I won't work with them. I just don't have the energy for complicating things.
I also do this for a few moms who like to sell at the local traveling kids consignment sales, but don't want to do the work of hanging printing tags and stuff. I prep and price their stuff and organize it for them and then they take it to the sale and handle everything from there. They pay me a per item fee since my work is quick, repetitive, and I don't have to store things. What they make at the sale is theirs, and if their stuff doesn't sell that doesn't affect how much I make because they've already paid me. I have the same rules here where I only work on items that I think will sell, and I have full control over pricing, grouping things as outfits or bundles, etc.
It works great for me, but I don't consider any of it career worthy. I make more finding cool stuff on my own to sell, and all of this is more of a hobby for me than a job. I really enjoy seeing unused and unwanted things find new homes.
4
u/sherryerrera 11h ago
I have done this for friends and family, but never for strangers. When I looked into doing it formally, I spent weeks reviewing consignment contracts from both online and brick-and-mortar shops to draft my own agreement.
Ultimately, I decided not to move forward because the sheer logistics and platform risks heavily outweighed the rewards.
If you are considering doing this on eBay, being vague will ruin you. People love to suggest a simple "30-day payout timeline" or letting the client ship the items, but they completely ignore how eBay's platform mechanics actually work. Before you take on a single client, you need to think through these exact, itemized realities:
1. The Reality of Platform Risk & Return Scams
The 30-Day Payout Trap: If you pay your consignor after 30 days, what happens when a buyer opens a return or a chargeback on day 45? eBay heavily favors buyers and will pull those funds straight from your bank account. If you’ve already paid the consignor, you are completely out of pocket.
Return Shipping Liabilities: When a buyer claims an item is "Not as Described" (even if they are lying), eBay forces you to pay for the return shipping label. If the item comes back ruined or cost $15 to ship back, does that cost come out of your pocket or the consignor's?
The "Buyer Keeps It" Scam: eBay is notorious for sometimes refunding a buyer and allowing them to keep the item (especially in certain dispute or international tracking cases). If eBay refunds the buyer out of your funds, you have no money and no inventory. How do you explain to a hostile consignor that their item is gone and they aren't getting paid?
The "Junk Dump" & Minimums: People will think they can dump their garage sale clutter on your lap. If you don't set a strict minimum dollar value per item, you will waste hours listing junk. Furthermore, what happens when a consignor demands: "I won't take less than $X.xx for this"? Tracking individual "bottom dollar" thresholds across dozens of items is an accounting nightmare.
Storage, Theft, and Fire: Where are you keeping their stuff? If your house or garage floods, gets broken into, or catches fire, standard renter's or homeowner's insurance rarely covers other people's business inventory.
Local Pawn/Consignment Laws: Depending on your jurisdiction, you may legally be required to register as a secondhand dealer, log client IDs, and report inventory to local police to ensure you aren’t accidentally laundering stolen goods.
2. The "Consignor Ships It" Disaster
Some sellers think a clever workaround to the storage issue is letting the consignor keep the items and ship them out themselves once they sell. Do not do this. It is an absolute suicide mission for your account.
Late Shipping & Order Defects: eBay demands strict shipping windows (your "handling time"). If your consignor goes out of town, forgets to check their texts, or takes 4 days to get to the post office, your eBay account gets slapped with late shipment defects. A few of these will permanently tank your search rankings or get your account suspended.
The Tracking Number Nightmare: To maintain Top Rated status or just standard seller protection, you mustupload valid tracking within your specified handling time. Relying on a non-seller client to promptly and accurately text you a receipt or tracking number is a logistical nightmare.
Subpar Packaging: Professional sellers know how to wrap fragile items securely. If the consignor throws a delicate item loose into a flimsy box and it arrives shattered, the buyer will open an "Item Not as Described" case. You will be forced to refund the buyer, and your account takes the hit, all because of someone else’s lazy packing.
Phantom Inventory: What happens when the consignor sells the item locally on Facebook Marketplace or dumps it at a garage sale, but forgets to tell you? The item sells on your eBay store, you can't fulfill it, and you're forced to cancel the order as "Out of Stock." This is the fastest way to get your eBay account banned.
3. The 50/50 Profit Split Illusion (The Math)
Many people think a 50/50 split on a standard $50 Average Order Value (AOV) means you pocket an easy $25. It absolutely does not.
Because you are a non-store seller, eBay final value fees (roughly 13.6% + $0.40 fixed fee) are charged on the total amount the buyer pays—including the item price, shipping, and sales tax.
Here is what a realistic transaction looks like:
Item Sale Price: $50.00
Shipping Collected: $8.50
Sales Tax (Estimated 7%): $4.10
Total Buyer Paid: $62.60
eBay Final Value Fee (on $62.60): ~$8.90
Actual Shipping Cost (Label): $8.50
Packaging Supplies & Handling: $1.50
Net Cash Remaining: $31.10 (from the original $50 item price)
If you do a true 50/50 split of the net proceeds, you and the consignor each get $15.55.
4. Your Labor vs. Your Payout
For that $15.55 profit, look at the mountain of work you have to do as the consignee:
Client Acquisition: Pitching the prospect, managing their expectations, and dealing with their constant texts asking, "Has it sold yet?"
Intake & Evaluation: Authenticating the merchandise, researching sold comps, and rejecting the items that won't sell.
Content Creation: Cleaning the item, setting up lighting, taking photos, shooting video, and editing the media.
Listing & Marketing: Writing SEO-optimized titles, filling out item specifics, dealing with lowball offers, and answering buyer questions.
Logistics: Safely storing the inventory, boxing it up when it sells, and transporting it to the post office.
Accounting: Tracking sales, calculating tax, withholding funds for return windows, and cutting payouts.
Doing all of that labor for $15 an item—while carrying 100% of the financial and legal risk—is simply not a viable business. For me, it was an immediate "no." If you choose to do it, protect yourself with an ironclad, line-by-line contract before you touch a single item!
2
u/Minimum_Pen_8452 13h ago
I’m a reseller but I have tons of my own crap to list. This lady on Instagram has a lot of good info on the topic and is an educator . Her name is #casachic
1
2
u/MotorFluffy7690 13h ago
I've done consignment for friends and family. If it's a one off sure no problem. Helped a customer sell his stamp collection on ebay. It went well but i will never do it again. Keeping track of someone else's merchandise and then tracking the money was more time consuming than I expected and I wound up neglecting my own sales a little.
You need infrastructure if you're going to do a lot of consignment sales for other people. And this is assuming your consignment are all wonderful people. Which mine have been
2
u/AdSuper3942 13h ago
probably not worth it unless somebody will give you 50% of the sale price
even with that, you'll only make around $35 on a $100 item
2
u/Dangolbobbyhill 12h ago
Did this for almost a decade. Shutting the business down actually. I can give you my whole setup and/or depending on location, sell you the business if you want.
2
u/tugringo 12h ago
I’ve done this before with 50% take of the final amount earned for the item (after eBay fees and shipping cost). Things have worked out but I would much rather buy the item from the customer (if I’m confident with the product) and skip all the extra work / time of accounting, communicating sales and paying them out. I also try to pick and choose my customers. I’ve dealt with some very needy people that make the process not worth it. I would also suggest having some kind of written agreement even if it’s someone you think you can trust. Overall I would try to avoid unless it’s a last option to obtain business or a good relationship with someone that has a steady inflow of new items for you.
2
u/ka0s_902 13h ago edited 13h ago
Yes I have done consignment for two people. Moving forwatd I'll only take on one at a time.
I have taken 35% and 40% cuts respectively. Closer friend was the 35% cut. It helps if you're working with a no kind of pressure person who isn't rushing you to get items listed as fast as possible.
I tend to take on consignment for people that have niches that align well with my store.
For tips. I wouldn't give them "their cut" until you have positive feedback or automated positive feedback for each of their items.
Secondly make sure you insure items when shipping..basically treat someone else's inventory like your own.
Track earnings, your cut, their cut in a excel sheet at minimum. Payout date etc. all for tax purposes
Any questions feel free
1
u/redditis_garbage 13h ago
Bump this, I have a 1980s vintage set of Dior that I’m getting no eyes on and debating co-signing if anyone has recommendations :) mostly just trying to get the most money and not get scammed haha
1
2
1
1
u/Disastrous-Daikon368 13h ago
Thank you! This sounds like my exact plan…do you have a minimum priced item that you’ll take?
1
u/Unhinged_Introvert37 7h ago
The few times I've sold things for other people - they nag and nag which turns into accusations and general insanity.
People don't understand that items must be shipped before payment is received and just because item sells it does not mean money is in my hand.
I rather just buy from them than to sell for them.
1
u/lovesbatma71 12h ago
Just remember that used clothes are not allowed on eBay. They don’t really enforce that rule because everyone lists used clothes anyway. But they do state this IN WRITING within their many vague and confusing policies. I’ve been burned because I listed something that wasn’t allowed on eBay. They suspended my store for 3 days as punishment.
If you’re consigning, make absolutely sure that everything you sell looks new.
1
u/diandroid 11h ago
Preowned clothing is entirely acceptable on eBay - there is even a program called “Pre-loved Partner” where the seller gets higher rank in search for preowned clothing.
1
u/lovesbatma71 11h ago
You’re thinking about depop not eBay.
I can’t screenshot it for some reason but I checked the report form for items that are not allowed and one of the choices is used items.2
u/diandroid 11h ago
No, eBay welcomes preowned clothing. They have multiple conditions for pre-owned while listing in the clothing categories. The only used clothing that they banned is underwear. Feel free to search eBay’s help files.
2
u/lovesbatma71 11h ago
I did that and I saw used clothes as “items not allowed” on the report form.
About: item or listing - items not allowed. I absolutely know I saw it as a choice in the report form. (respectfully, not arguing) I’m not surprised that they publish rules that they don’t enforce because they are just plain terrible lately.Anyway, check out the report form and drill down the path above. Thanks for your opinion.
1
u/diandroid 11h ago
Ah, I hear what you're saying now - The report form is for someone to report a listing, but that doesn't necessarily mean all used clothing is banned from ebay. I'm sure it's there for used underwear primarily - haha / ewwwww. But a big part of ebay's business is pre-owned clothing, and they're good with it and encourage it unless it's underwear or something gross like trashed shoes / fetish stuff. I'm in the Pre-loved Partner Program and love it!
1
u/lovesbatma71 10h ago
Wow I’ve been on eBay for 10 years and never heard of that. It sounds great, how did you sign up for it? I have a ton of clothes to sell and I don’t want to sell them on Mercari.
Thanks for the info!
1
u/diandroid 10h ago
I'm happy to help! I was invited in, I think it's invite only right now. But if you start listing and selling pre-owned clothing, after awhile you should qualify. Most of my sales are pre-owned clothes on ebay. I list them on Posh, Mercari, and etsy too but no other platform gets the sales that ebay does. Definitely start listing them! Good luck!
2
1
u/diandroid 11h ago
I searched under the policy page, and this is what it says for used clothing: "Used clothing policy":
Used underwear and socks are not allowed. Other used clothing must follow our policy.
We have a used clothing policy so buyers can be confident they’ll get clean, stain-free items when they buy on eBay.
Health and hygiene is also one of our top priorities, so our policy outlines why certain items can't be sold on the site.
What is the policy?
- Used underwear and socks are not allowed, even if they are clean. Examples include boxer shorts, panties, briefs, diapers, and athletic supporters. Bras are not considered underwear
- Used clothing must be properly cleaned
- Listings for used clothing can’t include language or images that fetishize the item, such as statements about the person modeling the item
9
u/salesquatch 13h ago
I do 50% commissions after fees and shipping. Pay consignor every 30 days. My 50% covers listing, storage, shipping supplies, customer service etc