Becoming an eBay trading assistant can be a good way to increase your income from eBay, but I’ve seen too many people jump in head-first without realizing what is really involved if they want to succeed.

To help you decide if being an eBay trading assistant should be part of your eBay business model, here are a few questions you should ask yourself first. Knowing the answers to these will help you decide if the program is actually for you and will help avoid some potential headaches and problems down the road.

Do you have eBay selling experience? - This may sound like somewhat of a silly question, but if you haven’t learned how to write headlines that draw bidders in; write descriptions that grab a bidder’s attention; and take photographs that present what you are selling to it’s best advantage, you have some things you need to become proficient at before offering your services as an eBay trading assistant.

Does your state or province have any special licensing requirements for businesses that sell consignments for other people? - Some do and some don’t. If yours does, you need to know what they are and be in compliance with them right from the start. Six months into the business, a response of “I wasn’t aware I needed that” isn’t going to draw any sympathy if your state’s licensing agency or tax department comes knocking at the door.

Have you decided on your fee structure? - As an eBay trading assistant you receive a percentage of the selling price of each item in payment for your knowledge and doing the work involved in selling on eBay. What percentage will you charge? Will your charge on a sliding scale dependent upon the final selling price? How will you deal with the fees for items that don’t sell? Etc.

Have you set a minimum acceptable expected sales price for consignment items? - There’s no profit selling $5 and $10 consignment items. If your eBay trading assistant business is going to be profitable, you will need to determine an expected price point below which you will not accept items for consignment.

Do you know what you will include in your consignment contract? - If you are going to become an eBay trading assistant you need a signed contract with each consignee to avoid potential problems. In addition to things such as fees, how soon after receiving the item you will list it, when should the client expect payment, what happens if their item doesn’t sell, etc. , your contract should spell-out exactly what the consignee can expect from you and what you can expect from the consignee.

Do you have space to store items you have on consignment? - To avoid problems and unnecessary headaches, you should take possession of everything you take on consignment. Do you have the space to store consignments where they are safe and protected from the normal day-to-day activities of your home?

Have you checked to see what additional insurance coverage an eBay trading assistant business may require? - More than likely your homeowners or renters insurance would not cover consignments you had in your home if something were to happen to them as a result of fire, flood, or some other disaster. Many eBay trading assistants include a clause in their contracts saying they contracts saying they are not responsible for items lost or damaged due to fire, flood, etc. However, if you are going to be serious about a consignment business, it’s probably best to have insurance coverage in place in case of such a situation.

Do you know how you will advertise and do you have the funds to pay for advertising? - Potential consignees aren’t going to bring you items they want to sell if they don’t know you exist. You are going to have to advertise your business. While some advertising methods are free, if really want people to know about your existence, you are going to have to spend some money. Business cards, fliers, newspaper ads, etc. all cost money.

Do you have a plan for tracking consignment inventory in place? - As your eBay trading assistant business grows you are going to need some kind of system in place to track consignments. At a minimum you will need to know what belongs to whom and where it currently is in the selling process. It’s best to have a system in place before you take your first consignment.

Do you have a reliable accounting procedure in place? - Keeping track of your own eBay business on scrap pieces of paper might be okay for some people. But, once you start handling other peoples property, you are going to need some kind of reliable accounting procedures in place - both for tax purposes and in case a consignee questions the numbers for an item you sold for them.

Have you determined how you will handle lost, damaged, and returned items? - Sooner or later, no matter how careful you are, an item is going to be either lost, damaged in shipping, or returned by the buyer for one reason or another. You need to know ahead of time how you will deal with these situations when they happen.

Will you allow consignees into your home? - Whenever I hear this question, the answer offered is always the same - NEVER. And, while there are some very valid for deciding not to, doing so can also hurt your business. A consignee will likely feel a lot more comfortable giving you their $8000 antique if they are able to physically see where you live, how it will be stored, and that it won’t be somewhere your three year old will run into it with his big wheel.

Are you prepared to offer excellent customer service to two sets of customers for each transaction? - When you sell your own items on eBay you have one person you need to keep happy - the buyer. When you become an eBay trading assistant, that number doubles. You now need to keep two people happy - the buyer and the consignee. Sometimes what’s in the best interest of one isn’t in the best interest of the other and that isn’t the easiest thing to do.

Having taken the time to determine the answers to these questions will help you decide if becoming an eBay trading assistant is really for you. If it is, the time spent will also make building and growing your business much smoother.

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