Online Auction Business for Local Consignors

Owners clearing out a home or estate, downsizing seniors, families, and small businesses with surplus stock pay commission. Buyers pay the winning bid and possibly a buyer's premium.

A commission on each lot sold, often a percentage of the hammer price, plus an optional buyer's premium and fees for pickup or cleanout.

• Photographing and describing items well
• Knowing what things are worth
• Organized record keeping
• Clear communication with sellers and buyers

• Check whether your province or municipality requires an auctioneer licence, bonding or registration
• Check if a home-based business licence or zoning permission is needed, especially with buyer pickups at your address
• Commercial general liability insurance, plus cover for goods in your care
• Collect GST/HST or provincial sales tax where required, and check how it applies to your commission
• Verify ownership of items, and check rules for restricted goods such as firearms, antiques with provenance issues or recalled products
• Storage space and winter pickup logistics

Startup costs are estimated at typically around $1,500 to $6,000 CAD, depending on your equipment, insurance and how much storage space you need. Treat this as an estimate and build your own budget from real quotes.

Monthly revenue is estimated at typically around $800 to $4,000 CAD, depending on how many consignments you win, the value of the items and your commission rate. These are estimates only, and revenue is not the same as profit.

Check whether your province or municipality requires an auctioneer licence, bonding or registration, and whether a home-based business licence or zoning permission applies, especially with buyer pickups. Also check insurance, sales tax on your commission and rules for restricted goods.