How to Start an eBay Consignment Business: Rates, Contracts, and Payouts

Consignment is one of the fastest ways to grow an eBay business without tying up cash in inventory. People have valuable items and no time or skill to sell them; you have both. But consignment adds complexity: other people's property, other people's expectations, and other people's money. Here's how to set it up properly.

How does eBay consignment work?

1. A client (the consignor) brings you items.
2. You evaluate, photograph, list, and sell them on your eBay account.
3. When an item sells, you keep a commission and pay the consignor the rest.
4. Unsold items are returned, donated, or reduced in price per your agreement.

What commission rates do eBay consignment sellers charge?

Rates vary by market and niche, but tiered structures are common. An example tier:

Sale price	Your commission
Under $100	50%
$100–$499	40%
$500–$999	35%
$1,000+	25–30%

Lower-priced items take nearly the same effort as expensive ones, so they carry a higher percentage. Many consignment sellers also set a minimum item value (e.g. $50 expected sale price) to avoid spending an hour on a $15 item.

Is commission calculated before or after eBay fees?

This is the most important decision in your agreement. Two common models:

• Fees come out first. Sale total − eBay fees − shipping = net proceeds; commission is a percentage of net proceeds.
• Commission on gross; fees are yours. You charge a higher percentage of the sale price and pay eBay fees and shipping from your share.

Example: a $300 item. eBay fees ≈ $41, shipping $18. Under "fees first" at 40%: net proceeds $241, your commission $96.40, consignor $144.60. Under "commission on gross" at 50%: consignor $150, your share $150 minus $59 in costs = $91.

Both work. What matters is that the consignor understands exactly how their payout is calculated. Our guide on commission and profit splits covers the general principles.

What should a consignment agreement include?

• Description and condition of each item at intake (with photos)
• Commission structure and whether it's before or after fees
• Who controls pricing and whether you can accept Best Offers
• Minimum price or reserve, if any
• Consignment period (e.g. 60–90 days) and what happens to unsold items
• How returns and refunds are handled after payout
• Payout timing (e.g. monthly, after the return window closes)
• Responsibility for loss or damage while in your possession
• Authenticity: the consignor confirms items are genuine and theirs to sell

Have a local attorney review your template once; it's a small cost compared to a dispute.

How do you price consignment items?

Use sold listings research, not active listings, to set realistic expectations up front. Show consignors comparable sold prices at intake — it prevents "but I paid $400 for it" disappointment later.

How do you track consignment sales and payouts?

Use a consignor code in every item's SKU (e.g. C-SMITH-012) so each sale maps to a client. For each consignor, track items received, items sold, sale price, fees, commission, amount owed, and amount paid.

MyOrderProfit's commission rules can calculate a payout on every synced order — as a percentage of net profit, a percentage of the sale, or a flat amount — and payout tracking shows what each person has been paid over time. For consignment businesses managing physical stock for many clients, the Enterprise warehouse module adds per-client inventory, fulfillment, and billing — see 3PL for eBay sellers.

Is eBay consignment profitable?

It can be, because you have no inventory cost. But your "cost" is time. Track hours per item and commission per hour. If high-value niches like designer goods, cameras, or collectibles earn you $60/hour and household items $10/hour, adjust your minimums and marketing accordingly.