Consignment Agreement: Fill & Download for Free

The fees charged to a seller at any auction vary by auction house but typically include at the very least what is called a “seller’s premium,” a percentage of the “hammer price” which is the winning bid. I’ve seen seller’s premiums everywhere from 10% to 35%. If a piece sells for $300 at an auction with a 20% premium, the seller would receive $240.In addition to the seller’s premium, some auction houses have other charges. Many charge a per-item listing charge for the cost of photographing the item, writing the description, and publishing the item in the auction house’s catalog and/or on the web site. This can range from as little as $1.50 to several hundred dollars or more at a very high end auction house for an expensive piece that merits extensive publicity. Some auctions only charge these fees for items that go unsold.I recall one auction which included personal effects of the Antarctic explorer Sir Ernest Shackleton, whose memorabilia is highly sought after. In this particular auction, the auction house printed a separate catalog and did marketing and promotion for the Shackleton items, which potentially could reach millions in sales. These are unusual situations in which the seller and the auction house would negotiate the promotion package up front, most likely sharing the costs except for an extremely valuable piece, such as a Van Gogh. This situation would not face the typical consignor (the person who owns the item(s) up for auction).The typical auction house does not publish its sellers’ fees schedule, but alerts sellers that there are fees, as for example Christie’s does on its web site. The sellers’ fees will be listed in the consignment agreement when you give your items to the auction house.In recent years there has been a rebellion against excessive auction fees. Much like we see in the sale of real estate, both buyers and sellers pay commissions, with an often excessive amount of fees above and beyond the selling price. Many auctions have pared back their commission rates. And many will negotiate if you have a large quantity and/or particularly valuable or desirable item for sale.

Antiques and collectibles businesses can offer a wide selection of furniture, from tools to china figurines. Dealers generally agree that an antique piece is at least 100 years old, while a collectible is less than 100 years old. The distinction is blurred, however, because some sought-after collectibles command higher prices than older and more valuable antiques. An astute antiques and collectibles dealer markets merchandise with a recognized antique value, or that boasts a number of dedicated collectibles fans. Product knowledge, creative marketing techniques and attention to customers help develop a successful business.Step 1Document your business structure. Select the most appropriate business format with help from a certified public accountant familiar with retail businesses. Business formats include sole proprietorships, S corporations, general corporations and limited liability companies. Ask your accountant about each format's advantages and disadvantages for your antiques and collectibles business.Step 2Complete your business organizational tasks. Obtain a business license at your county or city clerk's office and ask about applicable permits. Meet with a commercial insurance agent regarding personal and business liability insurance. Contact your state Department of Revenue to obtain a sales tax license. Houston business owners receive startup assistance from the city's One Stop Business Center, which provides assistance with permits and licenses, facilitates technical and financial referrals and hosts free small business seminars. Its comprehensive "Getting Started" packet provides a well-rounded business primer and is available in print, CD or online versions.Step 3Lease a spacious and visible location. Find a storefront with an ample glass window for your antiques and collectibles. Ensure you have easy street access and plenty of customer parking. Look for a building near businesses that attract similar types of shoppers, such as furniture stores, gourmet kitchen supply shops and drapery and bedding stores. Obtain written zoning approval before you sign a lease or hire a sign-maker to create building signage.Step 4List your regional competitors. Research other regional antiques and collectibles businesses and visit each one to learn about its merchandise mix. For example, note whether the business specializes in primitive antiques or early 20th-century items. View the shop arrangement, as some shops group similar types of merchandise together while others mix items in room groupings. Note the shop's overall sense of organization and cleanliness, as well as the staff's attitude toward customers. Some major cities may list multiple antique dealers. For example, the Houston metro area listed 172 antique dealers in June, 2011.Step 5Improve your antiques and collectibles knowledge base. Develop your expertise in specific types of antiques and collectibles. Browse current valuation guidebooks and follow Internet auctions to learn about average merchandise selling prices. Visit non-competing antique dealers to ask for expert opinions.Step 6Purchase or consign your antiques and collectibles. Decide on your store's merchandise mix and how you will obtain those antiques and collectibles. Consider purchasing items from local estate sales and auctions, although this option may require you to buy an entire merchandise lot, or group of merchandise. Place "Merchandise Wanted" ads in your local newspaper's antiques classified section. If you choose to consign the merchandise instead of purchasing it, prepare a consignment agreement that spells out both parties' responsibilities.Step 7Host a grand opening antique appraisal day. Open your antiques and collectibles store by holding an antique appraisal day staffed by regionally recognized experts. Encourage visitors to bring in items for informal opinions and donate all proceeds to charity. Prepare a promotional flier describing your merchandise mix and services, such as offering to locate a specific item for a customer. Advertise the event in regional newspapers and city magazines and work with a graphics designer to create attention-grabbing ads. List your event in online regional antique event calendars.Source:How to Start an Antiques & Collectibles Business

You need to talk to your attorney about your rights under your agreement with Amazon, and to your tax accountant regarding the taxability of payments to compensate for a loss. I am fairly certain that the payment Amazon is offering you in compensation is not taxable, except to the extent that exceeds the carried value of the inventory that was misplaced, but the precise handling of that transaction will depend on how your business is organized and taxed (e.g. sole proprietor, LLC, S-corp, C-corp, etc), how you account for your inventory, how you characterize your transactions with Amazon. These are all questions to address to your accountant, who will know what the answers to these questions are already, and not to Quora, who does not.I can't imagine having half a million dollars of goods for sale on consignment at Amazon without having, at the least, a general business attorney and a qualified accountant both working for me in some capacity. At least, I'd have the phone numbers of such individuals in my address book, ready to call in case I have a question or concern.