As growth of eBay drop-off business slows, stores rethink their models
The get-rich-quick fantasy is fading for the eBay drop-off store business. The recent years’ explosion of grand openings by independent operators and franchisors ready to help consumers sell the stuff in their attic online appears to have slowed as experience proves how hard it can be to make a profit.
California-based franchisor iSold It recently announced it would stop selling new franchises so it could focus on helping existing franchisees. The move came as the company faced complaints from ex-franchisees who set up a Web site to air their concerns that iSold It painted a too rosy picture of the prospects.The get-rich-quick fantasy is fading for the eBay drop-off store business. The recent years’ explosion of grand openings by independent operators and franchisors ready to help consumers sell the stuff in their attic online appears to have slowed as experience proves how hard it can be to make a profit.
California-based franchisor iSold It recently announced it would stop selling new franchises so it could focus on helping existing franchisees. The move came as the company faced complaints from ex-franchisees who set up a Web site to air their concerns that iSold It painted a too rosy picture of the prospects.
But that doesn’t mean it’s easy. Store operators of all types struggle to educate the public on what they can do — and can’t. Customers have their own fantasies of discovering that old baseball card or lamp is worth a small fortune. It can be painful to hear that bidders on eBay are likely to pay so little that it won’t be enough to cover a store operator’s time and expenses.
A survey by trade publication AuctionBytes last year found it took an average of more than 20 minutes to research, caption, photograph and list just one item on eBay.
That didn’t include time spent packing, shipping and answering bidders e-mails about the items. Doing it all well, including knowing what price to start an auction, takes experience.
For those who set up storefronts, the money they make has to cover the rent and other overhead costs. If something sells for $20, there’s not much left after eBay fees and the customer’s take.
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