Welcome to this edition of Adam Ginsberg's "Insiders" Newsletter. Each issue is designed to provide you with insights, tips, secrets and overall strategies on how you can build your online auctions business. I'm sure you love this issue!

Consignment selling is the process of listing other people's products for them and paying them when the product finally sells. eBay has formalized this process with their Trading Assistant Program. This program has various benefits, but of course there's nothing to stop you being a consignment seller even if you don't join the program.

Note: To find the Trading Assistant program, click the services link at the top of any eBay page. Then, click the Trading Assistants link under Listing Solutions.

eBay provides a directory of trading assistants; sellers can enter a ZIP code and, if they wish, can select a product category - many trading assistants specialize in specific product types. They can also choose to view only trading assistants who have drop-off locations.

In order to make selling on consignment work, of course, you have to selective. Trading assistants generally have certain criteria that the product must meet:

• Many only sell in specific categories. Their experience in those categories helps them estimate pricing and salability.

• They have a minimum value. Trading assistants generally won't accept products they feel won't sell for more than, say $75.

• They have a maximum weight. Most trading assistants try to avoid very heavy items - for example, over 25 lbs - because of the shipping issues. Some may take larger items if they feel they can sell them locally, with the buyer picking up the item.

• The item must be sellable. This product has to be in a condition that will allow it to be sold.

How much can you make if you sell other people's products?

In addition to these fees, trading assistants will also deduct the payment-processing fees (typically averaging 3% of the total transaction value - sale price, shipping, insurance, handling & sales tax - plus 30 cents). Some trading assistants also charge the owner for packaging.

Acting as a trading assistant can be very attractive to some eBay merchants. If they are selling, packing, and shipping already, adding more products isn't difficult to do. The process is already in place and you get to keep a big chuck of the sales price.

Responsibilities of a Trading Assistant

What you don't have to do is pay for the original item in the first place, providing, in effect, free inventory in exchange for a smaller cut of the pie. When you consider, however, the cost of inventory if you were buying products to sell, your final cost is still quite significant. Of course, eBay won't let just anyone join. If you want to become a trading assistant, you'll need to meet these criteria:

• Sell four or more items in the last 30 days

• Have a feedback score of at least 100

• Have at least 97-percent positive feedback

• Have an eBay account in good standing

Note: You can sell on consignment without ever joining the Trading Assistant program. However, as the criteria to join are pretty easy to meet, you should join as soon as you can. Don't let it preclude you from getting started right away with your consignment business.

• Make sure you're ready. Don't begin selling other people's stuff until you've sold plenty of your own stuff.

• Build your own personal feedback profile. Doing so will insure higher final values for both your own, and other peoples items, that you're selling

• Get to 100 feedback as quickly as possible so you can get registered in the Trading Assistant directory and have the ability to use the Trading Assistant logo.

• Once you get registered, place the Trading Assistant logo on your eBay listings, your aBout me page and in your eBay store (if you have one).