On eBay END USER is buyer and will always pay more than a dealer would. Even after paying a consignment fee, seller makes more money.

This is true benefit of eBay consignment selling. Finding END USER. Before eBay this was a difficult and daunting process. With eBay, a simple listing placed in correct category, with a good description and some high quality photos, is enough to get a few END USERS to fight over item.

Things You Need To Succeed With Consignment Sales:

1. You need to take possession of items. When you sell items on consignment you risk your eBay name and reputation. You take these risks when you sell your own items, but you are in complete control of your actions. In order to lower your risks you need to get complete control of items you are going to be selling. This prevents sellers from changing their minds, and allows you to ship items as soon as you receive payment.

2. You should always have a written contract. One of my friends was sued by a consignor who felt commission was too high. The consignor agreed to pay 20 percent of selling price, then when item sold for $8500, got upset about paying $1700 to someone for doing 30 minutes of work. While my friend won in court, it would never have gotten to court if he had a written contract.

3. You'll also need to perfect ways to get items. At first your friends and co-workers will provide you with a good stream of salable items. After a while this stream will dwindle and you will need to go out and find consignors. This is not as difficult as it may seem. Remember, by consigning with you, seller gets more money than they would otherwise.

3. One problem that may come up is your shipping schedule. I ship once a week. Some eBay buyers feel that I should drop everything and go to post office as soon as they send me money through Paypal. This used to cause problems.

Now when a buyer sends me money, I quickly email him and tell him when to expect his item. Because I ship on Thursday or Friday, I can tell them their item will be delivered by next Tuesday, if not earlier. Instead of telling buyer I will ship item on Friday, I tell them to expect it on Monday. This changes buyer's focus from when I will ship to when they will get item.

One last thing before I finish up. I recommend eBay sellers use guarantees. If you take a credit card through Paypal, and later refund buyer's money, you will be out Paypal fees if refund is done more than 30 days after initial transaction. You need to require your buyer to return item quickly.