WWYC?
Longtime eBay sellers such as myself have seen numerous changes in the market. We’ve watched eBay’s business model change and grow, we’ve seen major shifts in the way business is conducted, and even in whom is doing the buying and selling.
Now, for example, there is no shortage of shops that will sell your item on eBay for you, if you don’t have the time or inclination to do it yourself. Generally they charge a fee – a percentage of the item’s selling price – and in my area that is about 30-40%.
Many of our members work as trading assistants (TA’s) who also take items in on consignment to sell, charging a portion of the sales price as a fee. Each TA sets their own fees, but in my experience 20-30% (before fees) is standard.
In reading a few days ago, however, I found an interesting article about flat-rate fees. ISoldIt4U.com is charging flat-rate fees for items they sell for you on eBay, starting as low as $9.95 for a $100-$250 item.
Interesting concept. However, most of us sell items for under $100, and we take a higher percentage of the profit as our cut. What does that mean for traditional consignment and TA’s? Maybe nothing yet, but it’s definitely a trend worth watching. If this takes off, it will require major changes in the way we do business.
And so I have to ask…WWYC?
What Would You Charge, if you were to implement a flat-rate pricing structure? How would this affect the way you do business? Would you continue to be a TA? Would this make you want to start? I can see it being frustrating for a TA’s ‘cut’ per item to go down, but I can also envision a huge increase in the number of people willing to consign their items with a lower fee structure.
Part of our business is being able to roll with change and find new ways to stay competitive, and this article gave me much food for thought. I hope it will do the same for you, and I’d love to hear some of those thoughts in the comments!
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