Wall Street Journal - Hiring Middlemen to Sell Stuff on eBay

Written by Wall Street Journal

Thursday, 29 January 2009 17:05

Wall Street Journal
By PEGGY EDERSHEIM KALB

In this era of downsizing, we decided we need to do some of our own by getting rid of some household stuff via eBay -- and snaring some needed cash in return. But since we're online-auction neophytes, we turned to so-called trading assistants -- firms that will list and manage sales on eBay for a fee.

First we had to find one. There's been a lot of consolidation in the trading-assistant industry. And the ones that are left have gotten a lot choosier about what they'll try to sell. Items that won't garner much cash just aren't worth it for firms to try to unload -- the seller-for-hire companies have to put in the same amount time, effort and expense whether the item sells for $75 or $1,000.

Hal Mayforth

The services take your item and do all the legwork: research the price, write the description, post it on eBay, field the email responses, monitor the auction, ship the items and collect the checks. They take a hefty commission, ranging from 23% to 45%, depending on the company and the price range.

We enlisted trading assistants to help us sell a range of items, including a couple of unopened iPods, a set of plates, an elephant tea set and a couple of toaster ovens sitting in our basement. We got mixed results. On average, it took a month, start to finish, to get any cash for our stuff; commissions ate significantly into whatever money we did get. New electronics sold, but our other stuff didn't. That said, when it worked, it was nice to get cash for things without going through any hassle ourselves.

With three of the four companies we tried, the process itself ran smoothly, if slower than we expected. We started with an iSold It franchisee in Norwalk, Conn., part of a nationwide franchise with 86 stores in 48 states. This iSold It doesn't pick up and will take only items they believe will bring in more than $75 (when items don't sell, the franchisee eats the initial eBay listing fee). They rejected the plates and the elephant tea set, but said they'd try to sell our slightly used Sanyo toaster oven. It went up on eBay but did not sell. Then we tried a one-year-old, never-used iPod Nano lying around our house. A month and a week later we had a check for $78.86 (the Nano 8GB fourth generation sells new for $149). Ken Sully, iSold It's president and chief executive, says that in the current economic crisis, the volume of the company's sales has gone up, but "the average selling price has gone down a little, from $125 to closer to $100."

We loved the fact that Auction-Key, a Norwalk based business that covers all of New England and the tri-state area, offered to pick up our stuff. But our first item -- pewter sconces a friend bought for $250 -- didn't sell with a $299 minimum bid. And our friend didn't want to risk starting the bidding any lower. Next item: another iPod Nano. We dropped it off at Auction-Key's Norwalk warehouse. The good news: It sold for $107.50 in a four-day sale. The bad news: It took another three weeks to get our check for our take -- $44.18. Still, better than having it sit in our basement. Auction-Key owner and president, Ted Fuller, says he generally does his payouts once a month, but he can sometimes be flexible, depending on how quickly the buyer sends a check.

We had our only really difficult time with the Snappy Auctions franchisee in a strip mall in Coral Springs, Fla. The store, which takes items with a minimum value of $50, was a mess. Lots of items were scattered all over the place (soda-fountain machine, mini bike, etc.). We brought two items to sell: a Craig iPod sound system and a Conair hair styler. The store told us that it could take seven to 10 days to list items, but that it might also take as little as two. It ended up taking 25 days for both items to finally get posted on eBay -- they gave us varying explanations for the delay, including computer problems.

The items went up with a minimum bid of $.99 (designed to move them no matter what) and both sold after a 10-day auction period. Payment -- from a main corporate location -- is supposed to be sent within two weeks after the buyer pays for them, but in our case, the payment for the Craig system dragged on -- though the payment for the Conair styler arrived when it was supposed to (start to finish, the former took 86 days, the latter took 49 days). The whole operation seemed very amateurish. Not to mention, we had the distinct impression from the clerk who initially helped us that our items would sell for far more than they did. In the end we received two checks: one for 57 cents and one for $7.28.

Debbie Gordon, president and founder of the Nashville-based company, said of our experience: "It's not typically how we do business." According to Ms. Gordon, the company, which has 30 franchisees throughout the country (down from a peak of 60 two years ago), normally lists items within three days -- and sellers should receive their checks approximately two weeks after an item has been shipped to the buyer and payment has been made. It's in the company's best interest to get the job done right, Ms. Gordon adds, since "we only make money when the customers make money."

Finally, we took a brand new iPod Classic with case to sell through the Auction it TODAY franchisee in Berlin, Conn. -- one of 56 throughout the U.S. The company handled everything professionally from start to finish, though it helped that we were bringing them a popular item that would sell. This franchisee prefers items valued above $250. (We originally paid $275.)

One interesting note: After we left, they clearly became somewhat suspicious that our item had been fenced, since we were from out of town. They asked us to fax over a copy of our driver's license, which we did. Check processing was especially fast with this company. We had a check for $105 18 days after we dropped off the item.

—Charles Passy contributed to this article.

http://online.wsj.com/article/SB123319302822427169.html

COMPANY/LOCATION	COMMISSION	PROCESS	COMMENT
Auction-key.com/Norwalk, Conn. www.auction-key.com	45% commission on the first $500, 38% of the next $500 and 35% above $1,000. Our iPod sold for $107.50 and we received a check for $44.18 (eBay fee: $8.50).	Company will pick up items in some New England and New York, New Jersey, Connecticut areas. Our items were picked up after two days (for a fee of $50, but we were charged only $20 because our item was small and the company's owner was in our area). It took two weeks for our first item to go up on eBay, and one week for our second. When the second item sold, it took another three weeks for us to get our check. Owner prefers items valued above $150.	Selling through Auction-Key was easy, if slower than we expected. It was worth it for us to have someone else handle the whole process, especially since we're not seasoned eBay sellers. iSold It of Norwalk, Conn.
LLC/Norwalk, Conn. 877isoldit.com	Commissions range from 23%-35% -- including service fee and eBay charges. Our new iPod Nano, factory sealed, sold for $133.97; after $44.22 in commissions and $10.89 in "other fees," we received a check for $78.86, five weeks after we dropped off the item.	This iSold It franchisee doesn't pick up and doesn't accept items they expect could get less than $75. Store valued the items on the spot and sent us away with the things they thought wouldn't sell. They generally encourage sellers to list at prices on the low side, to help create a little excitement.	The store rejected a bunch of our stuff. So what works? It suggests designer handbags, branded jewelry, high-end watches, new electronics or musical instruments. Then there is the novelty taxidermy category. iSold It said it sold a stuffed squirrel dressed like a cowboy, mounted on a stuffed pheasant, for $400.
Snappy Auctions/Coral Springs, Fla. snappyauctions.com	33% for items up to $500 (though the form we signed said they could collect up to 38%), plus "applicable eBay fees" (in our case, about 10% of selling price for each item).	We brought items valued at over $50, this franchisee's minimum, to the store. The store warned us that it could take as many as 10 days to list items, but as little as two. It took 25 days for both our items to get posted.	The store was a mess and the process felt random. The president of Nashville based Snappy Auctions said the company normally lists items within three days.
Auction it TODAY/Berlin, Conn. auctionittoday.com	50% (including all fees) for items between $100 and $249. Our final check: $105.	We dropped off our items, valued at just over their preferred minimum of $250, at a warehouse-like office. They double-checked our ID because we were from out-of-state. It was 18 days, from the day we dropped off our items to the day we received our checks.	Firm was efficient and easy to deal with, though the business is geared more toward people with lots of larger items to sell. We liked the way they advised us on our minimum bid, explaining why they suggested a $200 starting bid, rather than the 99-cent minimum they might have gone with.