eBay Franchise's - Here They Come!

Starting an eBay "Drop off" Franchise is definitely the next big wave of the eBay REVOLUTION!
According to eBay Chief Executive Meg Whitman, "consignment sales through drop-off stores may reach $10 Billion per year" - which means that there will be "eBay Drop Off locations" popping up all around the world. In my local town, Kansas City there are numerous successful "brick and click" businesses like www.auctionit4me.org that will post your item on eBay for a small % of the final selling price and then send you a check for the rest in the mail.

You see, if you automate and simplify as many of the steps in the selling process that you can, then your potential for making a profit goes up (McDonalds is a perfect example). If you are in business for yourself you should realize that you need to earn a MINIMUM of $50+ per actual "Man hour" worked, so a franchise may or may not be right for you.

I personally feel that the entrepreneur's are spending to much on getting the businesses set up and then a bunch of franchise fees on top of the "Hype Price" that everyone thinks that one of these stores are worth.

Opening an eBay Drop off Store isn't for everyone.

I have have the honor of working with a few successful entrepreneurs here in Kansas City that currently own self started drop off shops and they have all made a fair profit but they all agree that if they had to pay a franchise fee and any kind of royalty then it would be really hard to stay profitable. You can do a lot of local advertising for $15,000 to $20,000 and the software that a lot of them provide is the same stuff you can get from a variety of auction management software companies.

If you are thinking about starting a new "eBay Franchise" you may want to look at the following information because if you can run a business after you are trained, you can save a lot of money by doing it yourself or choosing a franchise alternative.

	::: NuMarkets Franchise Program*
	Franchise Fee: $20,000 Royalty: 6% of Gross Revenue Store Setup: You will have to follow their guidelines strictly to set up your store. Summary: Under the NuMarkets Franchise Program a franchisee has to pay an initial Franchise Fee of $20,000 and then a monthly royalty 6% of the gross revenue. Note that this is not 6% of your profit but the gross revenue. What this effectively means is that apart from the initial franchise fee, you will have to keep paying royalty to NuMarkets.

	::: QuickDrop Franchise Program*
	Franchise Fee: $25,000 + $1995 for Software Royalty: Varies Depending on Your Store Store Setup: You will have to follow their guidelines strictly to set up your store. Summary: Under the QuickDrop Franchise Program, apart from the initial high Franchise Fee, the franchisee has to pay an additional $1995 for the software provided. This adds to the cost of setting up the store.

	::: Snappy Auctions Franchise Program*
	Franchise Fee: $15,000 Royalty: 2 - 4% Store Setup: You will have to follow their guidelines strictly to set up your store. Summary: Under the Snappy Auctions Franchise Program, apart from the initial Franchise Fee, the franchisee has to pay a monthly royalty of up to 4%. What this effectively means is that apart from the initial franchise fee, you will have to keep paying royalty to Snappy Auctions.

	::: Auction Post Inc.'s No Franchise Fee Program
	Franchise Fee: $0 Course Tuition: $9,995 Royalty: $0 Store Setup: You will have total control on how you want to set up your store. Summary: Auction Post Inc. will provide you with guidance on all aspects of setting up and running your store but you will have the final say in how you want to set up your shop. We will guide you about the rights and wrongs.. You will have total control on how you want your store. This way you will be able to add a very personal touch to your store that is missing in most of the franchise stores. We have our own profitable eBay Drop Off Store. The experiences we faced during the setup of the store and during the daily operations makes us experts in providing you with the right guidance in setting up your store. Everything covered in the No Franchise Fee program is based on our real life experience during setting up and running our own store. You learn from our successes and from our experiences in dealing with the inevitable obstacles that get in your way. As you can see from above, if you choose a franchise store, you will have to pay an initial fee of up to $25,000 in addition to paying a monthly royalty and advertising charge of 4-7% of sales back to the franchisor. With Auction Post Inc.'s No Franchise Fee Program you pay no franchise fee or royalties ever! Why pay someone else for your work? If you have any more questions, please feel free to contact them here!

* As of Jan 1, 2006. This is the best information we could find on each Franchisor. You should contact them directly to verify that this information is accurate.

The concept is rather simple. The individual brings the items for sale to the drop off store. Following the registration of the product, it is then photographed and offered for sale on the eBay auction site on the Internet, usually for a one-week period. If a sale is made a check is issued to the seller. The buyer pays the auction price and shipping costs up front and the company sends the product.

Make sure to set a minimum in your business plan, the item for sale must be worth at least $$25 ($50 is better) from which the drop off service gets between 25% to 38% of the proceeds up to $200. Fees can decline on a sliding scale above a fixed price level. If the item is not sold, a second week option listing is offered at no additional charge. Items not sold are either offered to charity or returned.

eBay management estimates drop off stores will generate $10 billion in business in the next year.

I have designed a page with the information you need to get you started in the eBay Consignment business. There you will find examples of the different types of items you should look for to sell and all the forms that you will need to get you going.
Go to ---> eBay Consignment seller


 

Seattle, WA - OPEN - isoldit.wa8001
3000 15th Ave West, Seattle, WA 98119; (206) 284-9461 - (At Shurgard Storage location, just South of Dravus St.)
 

Federal Way, WA - OPEN - isoldit.wa055
Pavillons II Shopping Center 31653 Pacific Hwy S. Ste D Federal Way, WA 98003; 253-839-0305 - (Next to Best Buy in Pavilions II Centre, just North of SeaTac Mall/The Commons)

Puyallup, WA - OPEN - isoldit.wa014
4102 Meridian Street South, Suite E-5, Puyallup WA 98373; 253-770-9911 - (Adjacent to Best Buy and Ross in the South Hill Center)