As a former official eBay Trading Assistant, Trading Post owner and master franchise representative for an eBay drop store franchise chain. I would like to weigh in on the subject of franchising and stand alone eBay drop stores or consignment locations.
My experience on both sides of the fence has revealed certain truths, and since I was at one time a proponent of the franchise model, I believe my views could be helpful to anyone considering the purchase of a new franchise eBay drop store. These views are my own opinion and do not reflect upon eBay any eBay franchise drop store chain in particular or upon eBay consignment as an addition to any other type of business. I am simply expressing my views regarding the stand alone drop store franchise model and why it has failed.
I was on Yahoo and found your blog. Read a few of your other posts. Good work. I am looking forward to reading more from you in the future.
Tom Stanley
[...] Read More: eBay Franchise Drop Stores – Why they failed [...]
[...] store franchise chain weighs in on the subject of franchising and stand alone eBay drop stores in Trading Assistant Journal, a weblog that provides news and commentary for eBay consignment [...]
[...] store franchise chain weighs in on the subject of franchising and stand alone eBay drop stores in Trading Assistant Journal, a weblog that provides news and commentary for eBay consignment [...]
[...] franchise owner. What happened? Scott Pooler provides his take in his article eBay Franchise Drop Stores – Why they failed, excerpted [...]
The eBay consignor concept does not work. Stay away!!!
http://www.franchisepick.com/is-snappy-auctions-a-great-franchise-opportunity/
This was always a dumb concept: any consignment store, or second hand shop could compete with you with the flick of a switch.
I saw our local store was closing up just one year after it opened and was wondering what all was entailed with franchise. A lot of up-front money for a trial and error non-proven plan. Talk about helping ebay promote their name on your hard work, sweat, and life savings when it doesn’t work. Use ebay for what they are an advertising source and nothing more!
Many current and x ebay sellers and store owners are joining an online social networking community at http://sellingbeyondebay.ning.com/
I found your article absolutely fascinating. I’ll subscribe when I get back to my desktop browser.
I worked for QuikDrop, one of these drop-off companies, for the better part of 2 years. After the first owners shut down because “there’s no money left,” the second owner took out two mortgages on her house to support the two stores she owned.
Even with prime retail space, you can almost never count on walk-in traffic to bring in any serious steady revenue. There would be many days where I’d open the store at 10, and not see a single customer till I closed at 7.
It takes a huge commitment from the owner, and lots of Business to Business transactions to keep the standalone drop-off store profitable.
Two families’ lives nearly ruined financially because of the failed drop-off store franchise. I don’t have contact with either owner currently, and when I called one for my W-2 one year, she was rather bitter. It may have been because I was bleeding her financially at $8.75/hour, 9 hours a day, 4 days a week, for several months.
The store wasn’t seeing any profit, and we rarely saw support from corporate, even in their wonderful knowledge and 4% advertising take.
But I did what was asked of me, mostly. Some days we would have nothing but garbage in the store, because small sales are better than no sales. Oft times we had to deal with irate customers, enraged that their wonderful “priceless” belongings were not selling for over $15.
But such is the drop-off game. Your acceptable salable threshold of $100 drops to $50, then $30, then $20. Before you know it, most items, if they sell, go for $9.99.
If anyone wants to ask questions, share their experience, or question my experience in this area, I can be reached at Mitch@mitchsurp.com
I would be interested
Mitch,
Thanks for your great comments! What happened to your two owners was not at all uncommon. The eBay drop store franchise business hass seen its short day. Unfortunately times changed just to fast to allow this franchise model to work.
I hope you have found yourself a new direction, possibly utilizing some of the skills you learned as an eBay drop off store manager.
Comment here anytime… Your thouights are always welcome!