Originally posted by strasfamily
I have been approached by somebody I work with (but only met yesterday) to list a valuable item for her and she would pay the fees plus 10% of the amount it sells for. I am thinking it would be an easy way to make a little extra money, but what happens if something goes wrong after the item is shipped? What are my liabilities? I guess I need somebody to play the devil's advocate before I agree to anything.
Also, if I require insurance in my auction, how do I know how much to charge for the insurance if I don't know what the final price will be? If I use the shipping calculator, is the insurance automatically calculated at the end?
Thanks.
Fraught with danger!

Just my opinion. I have done this a few times, and I have a friend who does this for some of her friends/acquaintances, and has wound up with some people upset with her (unjustifiably, to me).
Some of the issues that can come up include: Deciding how much an item is worth--if you help your friend come up with a figure, she may at some point decide you gave her bad advice and that the item was sold for too little money. This happened to my friend.
Or, your friend may decide after the auction is over that she doesn't want to sell after all--but it's your reputation as a seller that's on the firing line, not hers.
If the item was inherited, family members may be furious that your friend is selling the item and may think she has no right to sell it, and will be angry with YOU. (This happened to me with a relative of mine!) Also, if you are selling for someone you don't know well, it's possible the item may be stolen. Even if you are selling for someone you do know well, it's always possible that the item is a knock-off (e.g., fake Roseville pottery or Louis Vuitton luggage) and you could end up being investigated for fraud.
Selling on consignment definitely is different in the eyes of tax authorities than just selling your own old clothes or your own used household gifts. You will find you have some tax liabilities.
The four times I have agreed to sell items for friends/relatives, I have done it for free, as a favor. This can still result in hard feelings! Personally, if I was selling on consignment to make money, I would ask for a minimum of 30-40% plus fees on higher priced items, and even more on lower priced items.
The way I handle these kinds of requests now is to tell people it's pretty time-consuming to sell stuff on Ebay, and that I don't have time to sell for other people, but would be happy to show them how to sell for themselves. So far, nobody has taken me up on this offer!
Re: insurance, you can state in your auction that insurance is required and will be billed at exact cost.