Forum Moderators: buckworks
Dropoff store franchises garnered a huge amount of publicity when they burst on the scene a few years ago, most famously a big role in the 2005 hit movie "40 year old virgin."
But, from one website...
'The widely hyped eBay dropoff store franchise concept is simple: You open a retail storefront in an upscale area. People bring in unwanted items they want to sell. You photograph, post and sell the items on eBay for them and keep a percentage of the sale.
The only problem with the eBay dropoff franchise concept? It doesn’t work.'
Source: eBay DropOff Stores: Franchise Graveyard
[edited by: lorax at 12:02 pm (utc) on Jan. 26, 2009]
It always struck me as a great way to get the worst of all possible worlds; all the disadvantages, none of the advantages.
Did ANYONE, ever, make a penny profit from such a 'store'?
Did ANYONE, ever, make a penny profit from such a 'store'?
Sure, the franchisors, as usual. There were once tons of slimeballs hawking these franchises. The stores themselves were closing right and left.
Must also be ghastly to work in one. Probably 80%+ of the people who come in have nothing that's profitably saleable. Also, some of the larger and better items require brokers licenses in many states.
Was just reading the experience of one techie who dropped off a bunch of computer items for a store to sell. Took 45 minutes for them to research the item and write up a description which he mostly provided.
It was just another layer of complexity, he noted. [and cost]
Why give it to someone else to sell ? The costs of seeling must have been near criminal
Bringing Ebay into it is just like telling the customer to go do it themselves.
Just like any business they would need to develop a trusted name for themselves and be able to get better customers with better items, like estate sales.
There are auction houses who are able to make good profits, but they are far and in between.
