posted on April 1, 2003 06:46:32 AM new
You remember, the auction consignment place we talked about a few weeks ago.
These folks have a fancy storefront here in Silicon Valley and a huge (mostly empty) processing facility behind it. You walk in off the street with your widget and they sell it on eBay for you.
We visited last Sunday, and my, it was interesting.
The fees are high. For most items, it's 40% of the selling price. And that doesn't include the eBay fees.
Actually, it breaks down like this:
40% of the first $200
30% of the next $300
20% of anything over $500.
I had used my antique Tiffany tea caddy (which should bring $1400) as an example, so I would pay:
$80+$90+$180 = a WHOPPING $350 consignment fee
But wait! They'll relist it for free if it doesn't sell the first time!
What would I get for my $350?
"professional" photograph of item
"professionally-designed" eBay listing
handle all buyer questions during auction
send out eoa
process payment
ship item
send me a check
The amusing aspect is that AD auctions these things under their own username, and they get the feedback (good, bad or indifferent). As the counterperson chirpily pointed out, "We've got 170 feedback!"
They claim not to accept anything worth less than $50, but I see that quite a few of their auctions start (and end) below that threshold.
It's worth noting that this enterprise is backed by a couple of investors who spent "hundeds of thousands of dollars" to start it up and who claim with a straight face to have done the market research that proves this is a winning concept. They are hoping to take it nationwide.
--
"I'm thinking of the immortal words of Socrates, who said `I drank WHAT?'"
posted on April 1, 2003 07:05:57 AM new
Actually it is not too different than what a lot of us do. We just don’t have the staff and warehouse etc. I suspect we don’t charge as much either. I for one charge 25% of selling price net after Ebay, AW, PP fees; I don’t accept lots less than $20.00, however some drift way down on relisting to move item.
I have tried it for less but found that those in the Big Mack world made more money.
Consignments are not my main effort and always are secondary to my own lots for obvious reasons.
posted on April 1, 2003 07:10:42 AM new
The local consignment shops in my area (So. Cal) charge and average 50% of the sale and these are not shops selling on eBay. 40% seems pretty reasonable.
