Auction sites have become a wonderful source of bargains and hard-to-find items.  Not only do they provide a source of trash to treasure objects, but they have given rise to a new business entrepreneur–the online auction store.

MDM first saw the rise of such stores many years ago when access to the internet was limited and online auctions were just catching on.  Individuals with an expertise, a digital camera, and word-of-mouth advertising hooked-up with sellers to take items on consignment and for a percentage of the sale price would promote and sell the individual seller’s item on these online auction sites. 

With the success of online auctions, these individual enterprises grew and expanded to include entrepreneurs buying overstocks, out-of-season, and lots from other merchants and manufacturers and selling the items for a predetermined profit online.  For a few this meant expanding their consignment stores to include this new medium.  Many of MDM’s friends from the thrift stores established their antique stores and developed an online site simultaneously.  One local purveyor of online goods has been in business for years selling automobiles.  It stands to reason that car auctions on the internet would be a natural evolutionary step.  Now, storefronts are springing up locally to sell other local and regional items globally.  This is a plus for both the seller and the consignor since in sellers can enter an arena where greater competition usually means a higher price for their items. 

Recently, MDM visited a local online consignment store to gain an idea of what a seller can expect when determining how to merchandise an item. 

• Layout.  The store inside had a counter, a register, and an employee for intake.  The most noticeable feature in the room is a large staging area for photographing the item for sale. The main room housed a staging area with a backdrop, lighting, and cameras on tripods facilitate an accurate and professional portrayal of the item for sale.  Anterooms housed other merchandise including paintings and antiques. 
• Pricing.  The range of commission percentage decreases with the increase value of the item.  For example:   

            Final Auction Price is $0.01-$199.99, Commission and Fees is 35% of selling price. 

            If  the Final Auction Price is $3,000 or more, Commission and Fees is 15% of selling price. At this store, consignments include motor vehicles and motorcycles or power sports that have a set deposit the seller pays even if unsold. To keep this in perspective, local live auctions usually have commissions range from 20%-40% regardless of the final auction price. 

• Items.  The largest portion of sales at this store were antiques.  However, while MDM was there a seller came in with a electronic item that was "hot" for holiday gift-giving.  It was apparent that this potential sale was taking advantage of a limited supply and the popularity of the item to inflate the price over its’ cost. 

When deciding to sell an item, the online auction store is a good resource especially if you have limited time, expertise, or simply do not want to bother with the entire process.  Selling online can be advantageous over selling locally because of the increased pool of buyers and potential of realizing a price closer to the market value, or in the case of limited items and popularity, can exceed the market or retail value. 

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