I would like to open an ebay store helping luxury retailers in my town sell their merchandise online. The idea is that this would be done on consignment (NOT DROP SHIPPING!). I'd take physical possession of the items.
I would sell on Ebay instead of Amazon because Ebay has a stronger user community which I believe is important when developing relationships with customers.
I would sell primarily customer returns, open box items, and items on clearance.
I've looked into some of the costs involved and I estimate that I can get this started for around 3500.00
ebay store monthly costs - 50.00
ebay store build out (programming) 1000
Monthly marketing budget - 300.00
terapeak - 23.00
po box - 15
legal - 700
travel - 120.00
I would like a 35% commission, but after expenses, my net profit margin might be around 10 to 15%. To hit my goal of 4,000 a month in my pocket, I'd need to hit sales of 26,000 to 40,000 dollars.
I don't see why they would refuse my services after all it's in their best interest.