Quote: "Also, its illegal to sell something you dont own."

Selling on consignment for commission is not illegal, but there *may* be licensing requirements in some states.

I sold a bit on consignment in my early days of Ebay (and was previously an auctioneer by trade), but I don't feel it is viable to list for commission only on Ebay - others certainly see that differently, and have businesses based around doing so.

Two general recommendations when listing for somebody else:

Always have the item with you when listing so that you know that you are accurately describing it (and in the context of the problems that have arisen here - also so that you have control of what happens to the item).

Always handle the packing and shipping or delivery yourself, as it is your reputation and possibly your livelihood or credit rating that is on the line, on the transactions that you handle.