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The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.

Tue May 10 2016 14:18:30

FedEx Joins eBay Consignment Selling Program

By: Ina Steiner

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eBay appears desperate for inventory - now you can drop off your unwanted goods at a local Fed Ex Office location, which will package them up and send them to one of two eBay Valets.

But do the numbers add up? With the eBay Valet program, the Valet deducts fees from the sale price:

- For items that sell for less than $50, the consumer gets 60%;
- For items between $50 to $200, the consumer gets 70%;
- And for items that sell for over $200, the consumer gets 80%.

And while the ultimate buyer pays the eBay Valet for shipping, someone - not the consignor - must pay the cost of getting the item to the Valet. Add that cost of having FedEx package and ship the item, and the margin is much slimmer.

FedEx has been offering the eBay Drop Off Centers at locations in Atlanta and LA for some time - today, it announced it's expanding the "eBay Valet Drop-Off Program" to over 1,600 FedEx Office stores over the coming months.

At one time, eBay had a thriving program where everyday sellers could set up a consignment business. It killed the Trading Assistant program 3 years ago and replaced it first with the "eBay Selling Assistant" program and then the eBay Valet program, which now has only 2 members.

Interestingly, to become an eBay Valet, you must have the ability to list 100,000 listings each month, among other requirements.

Let us know what you think - could you make a profit given the consignment fees involved? Do you think eBay should support its "regular" consignment sellers?

Comments (11) | Permalink

Readers Comments

FedEx Joins eBay Consignment Selling Program

by: Philip Cohen

Tue May 10 23:48:24 2016

Yep, desperation is setting in at eBay (FedEx too?); indeed, it has been set in at eBay for some while now.

When eBay starts chasing casual/small sellers you know that the sea is lapping at the gunnels and the not-so-good ship eBay is likely soon to go submarine ...

The eBay executive suite—where the incompetent mingle with the disingenuous, the unscrupulous, the malevolent, the outright criminal, and the just plain stupid; indeed, little appears to have changed since the cretinous Johnny Ho abandoned ship ...

Ebay Valets—LOL ...

FedEx Joins eBay Consignment Selling Program

by: pace306

Tue May 10 23:50:56 2016

"eBay appears desperate for inventory"

Ummm Id have to disagree ... for if they were, eBay rules would be more seller friendly.

This is just another back end deal ... just with Fed Ex instead of USPS.

FedEx Joins eBay Consignment Selling Program

by: Randy

Wed May 11 11:15:59 2016

When I think Fedex, I think damaged package...Independent contractors NOT paid by the hour (hurry, hurry, hurry). Maybe Fedup is getting a little nervous over the whole Amazon Flex program? Get your order delivered in under 2 hours for free with a Prime acct or under an hour for $7.99 with Prime.

FedEx Joins eBay Consignment Selling Program

by: trader_chris

Thu May 12 07:40:59 2016

I used Terapeak to inspect both of the eBay Valet accounts recently. Did you know that they only list items at auction for 5 days and have an average sell through rate of 11% - 13%? That's a terrible sell through rate, especially for a business that auctions everything and claims to be very particular about what they take.

FedEx Joins eBay Consignment Selling Program

by: eebart

Thu May 12 12:09:14 2016

I am a consignment seller and have been trading on eBay for over 18 years. In all that time I have yet to see them set up ANY program and then manage it properly. The Trading Assistant program should have benefited buyers, sellers, and eBay alike but nobody ever knew it existed! To this day I get 20-30 calls a day from people all over this country looking for someone to sell for them on eBay. The Valet system is just another idea fraught with problems and is destined to fail.

FedEx Joins eBay Consignment Selling Program

by: toolguy

Fri May 13 11:50:34 2016

@ Philip

"Yep, desperation is setting in at eBay (FedEx too?)"

Fedex is doing just fine, 10 years ago I thought eBay should've bought Fedex instead of Skype.

UPS is the one that's hurting. . .

FedEx Joins eBay Consignment Selling Program

by: Philip Cohen

Fri May 13 15:14:28 2016

@Tool,

Anyone that gets into bed with eBay, given eBay's stock market performance over the past 10 years, has got to be as desperate as eBay, or possibly their management is as incompetent as eBay's management ...

Given that eBay effectively has little more value now than it had ten years ago it's a wonder why someone has not made a bid for eBay. Now, I wonder why that has never happened? Probably, any potential bidder realises it would be too difficult to replace all the dead wood in eBay ...

The eBay executive suite—where the incompetent mingle with the disingenuous, the unscrupulous, the malevolent, the outright criminal, and the just plain stupid. ...

FedEx Joins eBay Consignment Selling Program

by: pace306

Sun May 15 23:16:30 2016

NO ONE wants eBay - thats why its gone unsold.

People want "loser" companies like Yahoo before they'd touch eBay.

Alibaba passed

Amazon doesnt consider them competition

Yahoo didnt want them

Jet was created from scratch instead of buying eBay and "fixing it"

Rakuten bought buy.com instead

Newegg said NO WAY

and the list keeps on going.

Yes eBay does make money - just enough to fatten up all the board of directors, and since they dont pay dividends - everyone is quiet and happy.

Buying eBay would also expose all the schemes and crimes aka the soft underbelly of the beast.

Best off to leave it as it is... its self sustaining. All eBay needs to do is supply a steady new supply of sellers to steal from, keep on keeping the difference from USPS, and keep on making money off adverts.

In its current shape, eBay could run FOREVER - it just wold never grow beyond what it is - and the lack of stock growth shows this to be the truth.

FedEx Joins eBay Consignment Selling Program

by: notbananas

Mon May 16 09:02:46 2016

I wonder if the 30 buyer rental program (180 days at Paypal) applies to eBay Valet seller?

FedEx Joins eBay Consignment Selling Program

by: bitbybit

Mon May 16 13:34:50 2016

If eBay was bought, wouldn't the lemon law apply? hehe

FedEx Joins eBay Consignment Selling Program

by: Bloggo

Sat May 21 21:59:50 2016

I received this offer today from eBay.
"Got collectibles? List and save 25% on selling fees."
They are obviously doing this due to a drop in listings. They're certainly not doing it because they are nice guys.

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