The Truth Behind Ebay Consignment Franchise Stores

eBay Franchise Business

eBay Franchise Business

Going back to my roots in college, I had a part time job in a regional ebay consignment chain called ShipOnSite. I was really excited when I got the job, even with the hourly rate of $8/hour.  During the early part of this decade, these chains even rated very high in reputable commerce directories for “best franchise opportunities”. Today, much has changed and the business model is suffering big time due to the economy and changes in the marketplace. While some are still successful, it takes a very good manager and the right demographics for one of these chains to succeed these days.

This eBay Franchise Article Received a lot of traffic, comments and questions over the last few years. I’ve moved this blog post over to my new site with many other eBay business articles. Please follow this link to read the rest of this eBay Consignment Store article and other related business posts. Thank you, and let’s make some money!

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13 comments

    • tiphut

      Gene,

      It’s been a while. I’m curious as to what your outlook is now and where you see it in the future?

  1. Shipper

    What an in-depth look at an often misunderstood market. Thank you for not only including a list, but explaining why certain methods tend to work and why others don’t.

    • tiphut

      No problem! These can be successful just potential franchise owners of eBay franchise stores shouldn’t expect the vibe around selling on eBay to drive the business. Now-a-days these stores seem similar to a UPS Store location with an added service to sell your old or unwanted junk on ebay through a trading assistant.

      Do you own an eBay drop off store?

  2. Thomas Hallock

    Thanks for the inside look into the consignment franchise model. Having started a successful eBay consignment shop in Austin, TX called The Sellery, I can confirm that you really have to always think outside the box to make the business work. We are always looking for used boxes to save a few bucks. We also wrote our own software to manage inventory and pay-outs to consignors: http://pages.thesellery.com/tools/ We even started a podcast to help other consignment sellers make their business successful: http://podcast.thesellery.com/ (just one episode so far)

    • tiphut

      Thomas,

      That’s great. You’re thinking in the right direction knowing that you need to offer something outside the box to ensure you’re staying competitive for tomorrows economics. Free boxes really adds up! In my other business we were paying to have waste management dispose of cardboard boxes each week. We just started saving the hundreds we received each week and posted an ad on craigslist and now have a few local eBay buyers that come by once every often and buy them for .50 cents each. Compared to $1-$2 anywhere else, it’s a bargain and with all the varied sized boxes we have, they can get exactly what they want in quantity.

      How is the eBay drop off store going these days?

  3. Corey Chambers

    Offering internatinal shipping is important for most items, especially guitars etc, because it increases the final sales am0unt.

    It is a common false belief that eBay Drop Off Stores should be in a high-exposure retail location. Most consignment customers actually prefer to have their items picked up. A warehouse location is more appropriate to be able to handle a large amount of products.

    Corey Chambers is a Trading Assistant on eBay with a Registered eBay Drop Off Location store in Santa Ana, CA. Corey offers free pick-up in Orange County, Los Angeles Downtown, Los Angeles West Hollywood, Long Beach, Torrance, Diamond Bar, Corona and Palm Springs, California. Call Corey Chambers at (714) 361-2655 or visit coreychambers.com

  4. JOhn J.

    This is such a bogus review. I Own a Ebay Drop off store and i make tons of money. This lady thinks she’s smart. The owners just didnt know how to run that store.

    • tiphut

      John, I agree that not all of these stores are doomed for failure. If you have someone such as your self that’s business savvy you can make money. The main point is that the money generated from the eBay selling division alone is not what pays the bills in most cases. Since this is a while since this initial post, I plan to research and trends with these franchise businesses and plan to make another post on what today looks like for sell it on ebay store owners.

  5. jodi

    We have a eBay drop off location/store front. We also work with people across the USA for consignments. Check our website out. If you have additional questions, call us or send us an email.

    • tiphut

      How do you handle across USA consignments? Do users need to send their items to you first? Just wondering how successful this has been for you. Thanks Jodi!

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