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How To Save Franchise Fees and Set Up Your Own eBay Drop Off Store

There has been a flood of publicity generated regarding the "Small Business Opportunity" being offered to would be internet entrepreneurs.

The plan is for you to purchase a franchise operation to sell products on consignment via eBay. Selling on consignment means you take a customer's product into your business, and pay the client the balance of the sales proceeds when and if the item sells.

The parent company guides you through the process of setting up a brick and mortar type of store located in a strip mall or similar location, and shows you how to attract customers using traditional advertising methods by which you sell their items on eBay. Your income is generated after all the fees are subtracted from the franchiser and eBay, along with the related standard business expenses listed below.

All of these items are considered overhead or business operating expenses:

1. Rent/Lease
2. Agreeability of Items
3. Bonded Insurance
4. Utilities
5. Employees
6. Fiduciary Insurance
7. Fiduciary Responsibility
8. Advertising

To start an eBay Consignment Business using this method, you will first be charged a Setup Fee ranging from $5,000 to $15,000 depending on the franchise you choose. There is also a range of fees to be paid to the Franchiser on every sale. You need to do the math for this type of operation after paying the franchise and setup fees to see if it is viable.

Setting Up An eBay Consignment Auction The Right Way

Eliminate the rental or lease and work out of your home. You can easily rent a storage facility for $50-$100/month to store your products, and you can meet your clients there. Remember, they do not expect or need an elaborate storefront; they want their items sold quickly with the least amount of effort.

You can obtain inexpensive insurance to cover the items in your storage facility. Advertise your eBay Consignment Service in local newspaper classified ads for under $20/week, and receive more products than you can handle.

Sign up for the eBay Trading Assistant Program (See my article titled How To Have eBay Send You Less Than Wholesale Product Sources). You will be provided with leads directly from eBay to you.

Obtain an Agreement of Items, which both you and the customer sign. These are available for under $29 at Legal Resource Online.

See the list below for Items to target in local classified ads. Indicate in your ad that you will sell items for "No Fee Charged - Pay Small Percentage of Sale"

* Computer Hardware/Software
* Toys and Video Games
* Consumer Electronics
* Antiques & Collectibles
* Jewelry/Luxury Goods
* Clothing & Accessories
* Sporting Goods
* eBay Auto Parts & Accessories

Services You Offer To Your Customer:

1. Inspect their product to make sure it is acceptable for sale.

2. Take photos of their product; then write the copy and design a professional ad and place it on eBay.

3. When the product is sold, process the payment securely, taking out your percentage, in addition to the shipping and handling charges.

4. If the product does not sell after placing the first ad, it is relisted at no charge.

If the product doesn't sell the second time, it can either be picked up by the customer, or donated to charity.

5. Packaging and shipping the product to the eBay buyer.

6. Mailing checks to the customer.

Setting up an eBay Consignment Business the correct way can allow you to start generating income in a short amount of time with limited expense!

Check out my new eBay Training on DVD's simple easy to follow steps on how to make money on eBay

MORE RESOURCES

Elizabeth Taylor auctions raise $183 million Huffington Post Christie's auction house says all of the 1817 lots offered sold at auctions in New York and London, some at 50 times their pre-sale estimates. The top lot was Vincent van Gogh's landscape "Vue de l'asile et de la Chapelle de Remy," which once hung in ... and more »

Elizabeth Taylor auctions raise $183 million The Associated Press Christie's auction house says all of the 1817 lots offered sold at auctions in New York and London, some at 50 times their pre-sale estimates. The top lot was Vincent van Gogh's landscape "Vue de l'asile et de la Chapelle de Remy," which once hung in ... and more »

Elizabeth Taylor auctions raise $183 million San Jose Mercury News Christie's auction house says all of the 1817 lots offered sold at auctions in New York and London, some at 50 times their pre-sale estimates. The top lot was Vincent van Gogh's landscape "Vue de l'asile et de la Chapelle de Remy," which once hung in ... and more »

Andhra Pradesh Govt to Review Excise Policy Outlook "The next round of auctions is due in June. So we should have a new policy in place before that," the Minister added. "Syndicates are neither new nor restricted to liquor trade alone. Syndicates exist in sand and other businesses as well," Mopidevi ... and more »

BBC News

Miro work fails to sell at London auction BBC News A 1933 work by the Spanish artist Joan Miro failed to sell on Wednesday in a week that has seen other pieces sold for record prices at London auctions. Miro's Peinture had been valued between £7m and £10m but went unsold at the Sotheby's event. and more »

Surprisingly weak demand for Hungarian bonds at auctions portfolio.hu Hungary's Government Debt Management Agency (ÁKK) has received HUF 62.2 billion worth of bids from primary dealers on a HUF 43 bn lot of bonds and in response to the muted demand it sold only HUF 40 bn worth of debt at auctions on Thursday.

3G.co.uk

HTC Launches First 4G LTE Smartphone in Europe 3G.co.uk Vodafone in Germany are just getting ready to launch their 4G network, but in the UK the 4G auctions are yet to even take place. The HTC Velocity, which is similar to the HTC Vivid LTE that launched in the US, should be released in the next few weeks ... and more »

KeyDrive Acquires Moniker and SnapNames Business Wire (press release) ... investments Key-Systems®, Moniker® and SnapNames® offer a complete suite of domain name products and services worldwide including access to over 300 domain name extensions, full-serve brokerage, live and online auctions and monetization services. and more »

LEAP event supports literacy KPCnews.com Tickets for Saturday's event cost $50 per person and include food and beverage tasting, live entertainment by Dan Heath with the Paradise Band, along with the chance to bid on gift items at two auctions. The evening will feature a variety of food ...

After kickbacks row, AP proceeds to review excise policy IBNLive.com "The current system of auction (of liquor shops) is flawed. It needs to be revised...we are on the job," Mopidevi told newsmen here today. A team of senior Excise Department officials visited Tamil Nadu recently to study the excise policy in vogue ... and more »

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