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eBay Guides - Trading Assistants - A Selection and Engagement Guide

http://reviews.ebay.com/Trading-Assistants-A-Se...

clipped by john Sep 01, 2006

Fees. The next consideration is fees. All TA’s charge a base commission for their services and nearly all pass the eBay and PayPal fees back the their consignors. Some also charge an upfront fee to list your item, and some rebate this fee upon successful sale and others do not. Some have multiple commission schedules, one for charities, one for businesses, one for consumers. So here is what you should be asking.

1. Is there an upfront fee to list my item.
2. If so, is that fee rebated upon successful sale of the item?
3. What are the commission rates.
4. Are the commission rates tiered or graduated?
5. Are commission rates negotiable?
6. Does the TA “Mark Up” the eBay fee?
7. Does the TA “Mark Up” the PayPal Fee?
8. What happens if my item does not sell?

To properly create an apples-to-apples comparison of how much you are ultimately going to pay in fees, we suggest using the following matrix:

And remember, in this exercise you have to include ALL Fees including PayPal fees, eBay listing, reserve, and additional features fees, and the commission. Also, remember there are various fee breakpoints and you will want to take advantage of them.

Make a chart like this for each commission program offered by each TA you are considering. Now this is only an example.

My Item Sells For I Realize Net $$ My Percentage

$10.00 $5.00 50%

$25.00 $15.00 60%

$100.00 $70.00 70%

Note. Due to the variety of breakpoints out there, we suggest using the following My Item Sells For Amounts: 10.00, 19.99, 20.00, 24.99, 25.00, 50.00, 75.00, 100.00, 150.00, 200.00, 249.99, 250.00, 300.00, 350.00, 400.00, 499.99, 500.00, 600.00, 700.00, 749.99, 750.00, 999.99, 1,000.00., etc. The key here is to generate values below and above the commission breakpoints and compare these net realizations across the board between all considered TA's to find the best one for you.

You might find that one TA’s pricing is great for items that sell for between $100.00 and $150.00 and another has better pricing for larger, big ticket items. You will also find that there are substantial variances in comparing TA Fee Schedules.

I have heard of people netting out a puny $25.00 check on an item that was sold through a TA for $100.00 on eBay, and I have seen other people netting out as much as $71.00 on the exact same item sold through a different TA.

If you are like most people, you want the best deal for your hard earned dollar. So carefully compare fees schedules.

And remember, the above comparison is generally used for small items weighing less than 50 lbs. If you are going to sell a car, a boat, business equipment or large items requiring a freight broker, there is probably a different schedule for you available from your TA.

Now is still only the tip of the iceberg. You still have a lot more work to do in choosing the right TA for you. .

eBay : Trading Assistant Toolkit Work with Clients

http://www.hammertap.com/ebaytradingassistantto...

clipped by john Aug 31, 2006

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Work the details out before taking on clients.

As in all business dealings, clearly spelling out the terms and conditions for the TA-client relationship before the work gets started is usually a key step to ensuring the success of that relationship. Agreement on critical items such as fees, time lag before they can expect to receive payment, and what happens to items that don't sell are best negotiated before the events occur. If a client is not willing to negotiate terms and sign a standard contract, it may be best to not engage them as a client.

Market the value of your services, not your commission rate.
As with any sales process, the first thing to do is convince the prospect of the value you can deliver with your TA services. Educate them on the experience you have on eBay and the research you complete before listing the item. Tell them about the quality of your pictures and the timely email responses you generate to buyers with questions. Let them know about your shipping processes and show them a sample statement so they know what they can expect from you once you're hired. Finally, discuss with them why all of these factors makes hiring a TA a great investment and makes you the right TA for the job. Only then, after delivering the value in the mind of the client, do you want to start talking about price.

Flat fees help speed up negotiations.
When possible, most TAs prefer to charge a flat percentage of the item selling price and usually that percentage includes all eBay fees. TA and TA client feedback indicates this makes acquiring clients much easier than either a "pay my fee of x% + eBay fees" or a "set-up cost is x, per-item cost regardless of whether it closes is y, and my take as a TA is z" approach. The one challenge with the flat fee model is building in an allowance for items that don't sell, but the benefit of addressing that challenge is a much easier sales cycle for prospects. One related comment - always sell the full value of your services

Return all calls - you never know who's on the other end of the line.
It doesn't matter what the item is or what the client's questions are, you should return every call in a timely manner with a professional demeanor. One client with an apparently low-priced item could just be testing your services and could have numerous other items, in addition to friends with lots of items. Simply returning a phone call and providing a quick overview of your services could lead to future referrals.

Provide an easy-to-review summary for each client.
Make it easy for clients to understand all the accounting behind the check they receive. A clear and concise statement that covers how many items were listed, how many were sold, the amount they sold for, the TA expenses, and the net amount due the client will make repeat business and referrals much more likely. One of the best ways to do this is to build an Excel spreadsheet with all the right headings and fill in the blanks for each client. Then print the spreadsheet for each client and send it with their check.

Add a unique client code to all TA client listings.
Provide the ability for your clients to view their items on line easily - if you have multiple clients, you can assign each one a unique code and insert it in the items you list for them (use a small font and put the code near the bottom of the listing). Then do a search for each consignor inside your seller list and you'll get only that person's items. One good system for adding codes is to use the client's initials and zip code to build a unique code for each client. For example, if Joe Smith in ZIP 95125 is a client, his unique code becomes js95125 and that code is inserted in small text at the bottom of every auction you list for Joe.

Email clients a live link to their auctions.
Email clients with a link to their auction(s) once they have completed the listings - send clients an email that links right to their live auctions to get them excited about watching the auctions, and hopefully more likely to bring more product to you to sell for them. You can send the link as a link to a single item page or multiple item pages, depending on how many items you listed for the client. As an alternative, if you use the coding system above, you can send a link that is a seller search (or seller store search) for items with that code.

PowerSellers, Trading Assistants, and Trading Posts > What’s a Trading Post?

http://www.quepublishing.com/articles/article.a...

clipped by john Aug 31, 2006

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eBay Encourages Consignment Sales through Trading Post Program

http://www.auctionbytes.com/cab/abn/y04/m01/i28...

clipped by john Aug 31, 2006

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eBay Encourages Consignment Sales through Trading Post Program
By Ina Steiner
AuctionBytes.com
January 28, 2004

eBay sellers have long understood the benefits of consignment sales, enabling them to get inventory without the risk being saddled with unsellable merchandise. Consignors maintain ownership of the items, and if items don't sell, eBay consignees return them to the owners.

eBay has 30,000 members signed up for its formal "Trading Assistant" program, created in February 2002. A page on eBay offers resources for sellers as well as a searchable directory for those looking for eBayers to sell their goods (http://www.ebay.com/ta). Commissions and terms vary and are set by the Trading Assistants themselves, who must meet minimum feedback requirements to participate in eBay's program.

Many of the 30,000 eBay Trading Assistants operate from homes or warehouses. Now eBay is helping storefronts who want to get in on consignment selling. Last year saw a dramatic increase in storefronts trying to capitalize on eBay consignment selling, including AuctionDrop, a start-up that has received millions of dollars in VC funding.

eBay has created a marketing program called Trading Posts and is allowing two storefront services to use the name in their business: AuctionDrop and Postnet.

Postnet offers a host of copying- and shipping-related services in its stores. Under an agreement with eBay, Postnet is allowed to set up "eBay Trading Posts" in its franchise retail centers. eBay is giving Postnet a head start, promising it will be the only "mailing services" (or pack-and-ship) business allowed to use the Trading Post for eBay branding. The exclusive deal expires after the first two quarters of 2004, after which eBay may bring in other pack-and-ship services to the program.

eBay also has an agreement with AuctionDrop, whose storefronts offer eBay consignment services. While many other eBay drop-off stores exist (see chart), AuctionDrop appears to be the only one enrolled in eBay's Trading Post program. AuctionDrop uses the Trading Post branding in its drop-off stores and print advertising and will be adding it to its eBay store in March.

Many are skeptical about the feasibility of a retail consignment service for eBay, citing the overhead of operating a storefront and the difficulty of attracting the right merchandise. Trading Assistants themselves seem wary of eBay's support of the retail businesses, wondering if it will shrink their pool of possible inventory.

eBay said it sees a strong potential in offering a variety of ways for people to offload items on eBay, including those who don't want to sell the items themselves, and said the Trading Post program does not change anything for its Trading Assistants.

Postnet stores had participated in an eBay consignment service several years ago under an agreement with MyEZsale. Steve Greenbaum, CEO of Postnet, said he learned lessons from that venture. MyEZsale had provided computers and training to pack-and-ship stores, which sold items on eBay on consignment basis under the MyEZsale moniker. Greenbaum believes MyEZsale failed because they put a financial burden on the stores with large upfront costs. Greenbaum said Postnet already has computers and Internet connections since they provide Internet services to their customers. There are 850 Postnet locations in 44 states and abroad, and Postnet has an aggressive expansion plan.

Postnet charges a $2.99 listing fees to consignors ($14.99 if they want to set a minimum bid). Postnet takes a 40% commission for items under $500, and 25% of the price for items that sell for $500 and up. Postnet store employees create the auction descriptions and take the photographs of the item. Postnet headquarters does the actual listing and customer service for the auctions, although the item stays at the store location.

Postnet stores share the 40% commission with Postnet headquarters. The stores also benefit by charging for packing services when they ship the item. And they benefit from volume discounts from UPS and other shipping companies.

AuctionDrop stores were created solely for selling on eBay for consignors and has five stores in California with six more opening soon. The company has received $6.5 million in funding and hopes to get an additional $25 million to fuel its East Coast expansion. The stores have a basic free listing plan and a premium service for $19.99. It charges a 38% commission on the first $200, 30% on the next $300, and 20% of the remaining amount. AuctionDrop's methodology differs greatly from Postnet; stores send items to a central processing warehouse where items are photographed, listed, and packaged and shipped.

eBay has been tight-lipped about the Trading Post program. If it determines the program is a success, it's possible it would license the Trading Post brand to additional services. Many others are testing the waters, including AuctionWagon, Drop N Run, DropSmart, I-SoldIt, Picture It Sold, and QuikDrop.

The 30,000 Trading Assistants aren't holding their breath. They are too busy running their own businesses and learning what works best for them. With the ability to apply specialized knowledge and custom services, including item pick-up, they hope they can hold their own against the brick-and mortar Trading Posts.

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