Ebay drop-off locations/franchises.

Anyone have experience with or know anything about this idea?

[HughMungus]

A local retail convenience store in my neighborhood is considering closing and I'm wondering if they might be more profitable (and happier) operating as not only a retail business but incorporating other functions, also.

One of those other functions is the ebay drop-off concept which is a physical location that people can go to to drop-off items that they want to sell on ebay. The drop-off makes a profit by collecting a commission on items sold (and, in fact, is now being franchised as a business by some companies).

Here's an article:

http:*//sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2003/09/29/BUGLG1VC0K1.DTL&type=tech

Does anybody have any experience with this and know of the caveats and considerations involved (beyond item storage which takes a lot of space)? Anybody have any other experience with hybrid bricks & mortar + internet businesses?

TIA!

[sun818]

You can do a search on eBay.com for "Trading Assistant". The eBay Groups also has specific forums for Trading Assistants. I think the real money is in helping technologically unsavvy businesses sell online. But I've also heard of antique/collector type of people being very successful with individuals.

[jsinger]

"(and, in fact, is now being franchised as a business by some companies)"

Keep in mind that the great majority of "franchises" are sort of scams. At any given time, there are about 3,000 franchise "opportunities" in the U.S. and maybe 95% will go out of business quickly. Nowadays, they target immigrants with virtually no knowledge of business and who are willing to work 70 hours a week (and have their young kids work too).

The WSJ and Fortune have done some very negative articles on franchisors (especially sandwich and quickie mart shops) in recent years.

And Subway is probably one of the better deals!

The fact that something is franchised means nothing.

[woop01]

Nowadays, they target immigrants with virtually no knowledge of business and who are willing to work 70 hours a week (and have their young kids work too).

Yeah, I stopped at the gas station on my way into work this morning too.

[agerhart]

>>>Keep in mind that the great majority of "franchises" are sort of scams.

Maybe the smaller ones, but the larger ones (McDonalds, Dunkin Donuts, etc.) are huge money makers. You have to be able to show over $1 million in assets to even be able to open one.

<added>

I just found this:

Upon applying for a Dunkin Donuts franchise in one particular East Coast state, you have to be able to show $650K liquid /$1.3M net in assets.

[HughMungus]

Yeah, I know that franchising isn't necessarily a sign that it's a good business idea. I was thinking more that the fact that the idea is being franchised is an indicator that somoene, somewhere thinks that this is an idea that might work. I'm not thinking about getting a franchise as much as looking for opinions and other input on the issues involved in running such a service (given this opportunity that might be springing up for me).

[jsinger]

"I just found this: Upon applying for a Dunkin Donuts franchise in one particular East Coast state, you have to be able to show $650K liquid /$1.3M net in assets."

---
You ever see who owns a Dunkin Donuts? Where I live, by the way, almost all the DDs have been put out of biz by Krispy Kreme.

The WSJ concluded that a franchisee is often merely buying himself a low paying job with gruelling hours and no vacation.

Does that ring a bell? Gotta get back to coding.