Are Any eBay Drop-Off Franchises Successful?
Recent revelations about failures and financial problems at iSold It have raised serious questions regarding the viability of the eBay drop-off store model. The authors of amitheonlyone.org contend that the entire concept is fundamentally unworkable. However, the websites of a number of eBay drop-off store franchise concepts continue to court prospective franchisees with the benefits of investing in their franchise opportunity, including:
No longer offering franchises:
NuMarkets
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What do you think?
Are any of these eBay drop-off store franchises operating profitably at the unit level?
Are there concepts we’ve missed?
Share your perspective… leave a comment.
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POSTED IN: ISOLD IT, x Insider Tips, xBuyer Beware
17 opinions for Are Any eBay Drop-Off Franchises Successful?
G.
Apr 11, 2007 at 7:10 am
Quik Drop has had 50+ stores gone last year alone - not to mention the ones that have gone under this year as well. Snappy Auctions has taken over the number two slot, but have had a few fall off as well.
The bottom line is that there are plenty of successful stores from what I’ve read. The trick is not charging to little for your services, as well as not putting it in a town where the average income per house is $30k.
Another Failure
Apr 12, 2007 at 9:46 am
The answer to this question is NO. There are probably less than 10 successful stores nationwide between all franchises. Of the approximately 600 that have opened that number is staggering.
Many stores are still open and operating but are subsidizing negative cash flow with principle and are just waiting to close.
Chance
Apr 12, 2007 at 11:22 am
Unfortunetly, the number ten is on the high side. In fact the snappy in Atlanta that is touted to be so great, is actually three stores reporting on one id. Divide those dollars by 3 and they are doing no better than the rest.
The point here is that the CONCEPT DOES NOT WORK!
Jacob Maslow
Apr 13, 2007 at 2:55 am
Chance,
I had an unsuccessful snappy auctions franchise that never did platinum (25,000 per month) and currently am a ebay tianium powerseller (over 150,000 monthly) selling my own items and for other businesses. The three stores in atlanta are under 1 id but to make matters worse they are family run and was able to operate with negative cash flow due substantial free labor by the three principals and their extended family.
They did their own painting and all other renovations for the stores and did not need to hire as much staff as they worked free.
Several of the other snappy stores have survived with little cash coming in due to free labor by multiple partners. Stores with multiple partners can survive longer with little cash flow due to the free labor but that only delays the inevitable.
Also, snappy auctions keeps pushing franchisees to spend more on marketing and staff up claiming that staff pays for itself.
The only other user ids that has sales of any significance is the manhattan store which is paying a lot of rent and very high labor cost. They need a lot more labor because the store is tiny (they need to list items immediately and ship as soon as its paid). Their expenses are huge. The connecticut store had decent sales for a while because the owner bought out the remaining inventory of a jewelry store.
Before snappy auctions illegally terminated me without notice, about 40% of my sales were items that I bought on my own from various sources. Once they terminated me, I focused on my own items and did not have the overhead or the headaches.
samantha
Apr 18, 2007 at 1:50 pm
All this has lead me to believe in the rankings reports of certain magazines as much as I believe in the Easter Bunny……A 6 ft tall Pink bunny carrying around an easter basket …yeah right
Rus
Apr 24, 2007 at 11:34 am
4 stores have opened in my hometown in the past 2 years - all four have closed their doors.
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Jun 20, 2007 at 11:17 am
[…] drop-off store franchises like iSold It, Snappy Auctions, and others were heralded in recent years as having the hot new franchise concept. While there are many […]
Ben Scrood
Aug 22, 2007 at 4:10 pm
Well according to this web site there were 64 Snappy Auctions:
http://aol.entrepreneur.com/aol/franchises/snappyauctions/315758-0.html
If you count the stores on the Snappy Auctions site there are 48 stores. That’s 25% attrition rate to date and several more in the works.
sean
Aug 24, 2007 at 6:12 am
Incidentally, some franchisepick.com readers requested a list of closed and/or failed eBay dropoff franchised stores. I began compiling a list of reader-submitted locations at the link below. I’d appreciate any clarifications, dates, additions to this list.
Franchise Graveyard: eBay Dropoff Stores
If anyone wants to contribute lists for iSold It and others it would be appreciated. To contribute in private, email info@ideafarm.net. Thanks to those who contributed.
unsnapped
Oct 2, 2007 at 2:15 pm
Snappy doesn’t work, iSold-it doesn’t work. None of them work. The ONLY reason these stores are still open is people are working for free and going further into debt. I got out before it consumed me.
Please read the posting on this site and get out while you still can. You’re just delaying the inevitable.
eBay is changing and more and more people are going to other options like Craig’s List.
bad deal, not easy
Nov 9, 2007 at 5:48 am
Hello,
Drop Off Store franchisors develop in France the same economic model to get franchisees money.
ebay france has difficulties to develop ebay.fr because average selling prices have dropped too. There are a lot of scam and cheap items too.
In West Europe, “PriceMinister” and “2xmoinscher” are good rivals to eBay. Many sellers in France stop to do business on eBay and there are more and more illegal commercial sellers on the territory.
eBay Drop Off Stores open month after month here and there is no future for them, there’s so many items that not sells or sells at ridiculous prices.
It’s sad..
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Brian C.
Dec 27, 2007 at 10:08 pm
Well, my wife and I looked at franchises (ISoldit, etc).. but after looking at both the start-up and long term cost we decided to go it alone. And there is NO way would could have stayed in business if we were paying franchise fees. We have been open a little over a year and have been pretty much just breaking even.. our gross sales range from $20,000 to $35,000 per month. But we do see an increase and expect to make it.
The big problem with this business is… IT IS 24/7. There isn’t a second of the day there isn’t something that MUST be done. Between shipping, packing, listing, answering emails, etc.
Brian C.
Dec 28, 2007 at 11:19 pm
A follow-up to my previous posting… If you open one of these stores without a franchise you can be more flexible with customers and fees. For example.. we have an Air Plane listed right now… the frachises would have made us list this at a price the customer could not afford or would have made the starting price so high it would not sell. And the listing is almost to it’s reserve with 180 watchers 3918 hits. So with a franchise we would have lost the customer, without the franchise we are going to clear over $1,100. Which would you rather have? You can email me at brian_c_91066@yahoo.com if you want both the good and bad of this business. There is a lot of both.
deedee
Jan 10, 2008 at 11:26 pm
BAd idea. Don’t open one. Expensive operating costs and people will bring in too much time consuming junk.
marc s
Feb 27, 2008 at 3:23 pm
I have had a drop off store for 2 years and it is a good thing I had money put aside. I can’t figure out how to make a living doing this. I had my own buiseness for 30 years before I opened this, so I am no rookie to running a business. I would love to share marketing ideas with any remaining people in this biz.
Please contact me
Marc
Brian C.
Mar 12, 2008 at 11:14 am
marc.. we have become a UPS drop-off site (not a franchise) and we are packing and shipping packages, as well as selling boxes. I think there are two other keys to this business.. 1) specialize in at least one large item, we do pretty good on campers. 2) Try to find a wholesale product you can move on your own, I have a large retail golf store chain that sells me their high-end trade-in clubs. I can usually mark them up at least 30%.
The problem is… none of this reduces the labor involved. To me.. this business is best for couples who are close to retirement and enjoy the treasure hunting part…
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