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eBay Selling Made Easier (SF Chronicle)
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Joan Spiegel, a retired psychologist who admits to being an Internet neophyte, was intrigued by the idea of selling some framed prints on EBay without any technological hassle.
Standing inside a store in Berkeley, she listened to a clerk explain that everything would be taken care of for her. For a commission, the store's staff would take photographs of the prints, list them for auction on EBay, respond to questions, collect payment and ship the prints to the winning bidders.
"I'm going to bring in one print and try this out,'' Spiegel said, delighted with what she heard from the clerk. "If I like it, I'll come back with more.''
Welcome to one of the latest businesses to piggy-back on the EBay phenomenon: the EBay drop-off store. These shops allow the public to wash their hands of auctioning unwanted items online by having professionals do it for them.
Several EBay drop-off stores have opened nationwide over the past few months, including ones in Berkeley, San Carlos, Menlo Park and Los Altos. They are owned by entrepreneurs -- not EBay -- who believe that there's a big appetite for such a service.
The question is whether the public really wants their help. After all, EBay is already deluged with users, making it one of the Internet's biggest successes.
Kevin McGinnis, who co-owns Berkeley's Picture It Sold with his wife, Erin, said that the lure of his shop is the convenience. EBay isn't as easy to use as some people may think, he said.
"Buying on EBay is easy, but selling isn't,'' said McGinnis, whose store opened in August. "There are many more impediments. You have to be really well- acquainted with a digital camera, and you have to be acquainted with a computer.''
Auctioning items on EBay on behalf of others isn't a new idea. People have listed merchandise for their family and friends for years.
Professionals have filled a similar role for a commission. EBay estimates that there are nearly 25,000 of these so-called trading assistants, who generally work at home and are self-employed.
Business liquidators are another niche. They auction unwanted items on EBay for other companies that are downsizing or upgrading to new equipment.
EBay drop-off stores take the industry to a new level. They put EBay on Main Street, right alongside cafes, service stations and beauty salons.
The clear leader in the nascent EBay drop-off field is AuctionDrop, based in San Carlos. It has opened three stores so far, in San Carlos, Menlo Park and Los Altos, with the help of $3 million in financing, most of it from private investors led by Mobius Venture Capital and Draper Associates.
All the stores feed their goods to a central warehouse in San Carlos. Once they are taken off trucks and inspected, the items are moved along a complex system of conveyor belts.
The first stop is at one of several photography stations, where on a recent day, the photographer was focusing on a piece of luggage dangling from a mannequin. Farther down the line, Suzy Kunda-Cvitkovic, a specialist in jewelry, silver and porcelain, was examining a set of flatware at her desk and writing up the description, paying careful attention to the condition.
"I don't put down anything that I can't prove,'' she said. "Buying on EBay is an act of faith.''
Items in the warehouse represented a cross-section of EBay as a whole. There were bicycles, a pay telephone, an R2D2 ice cooler, dolls, a riding saddle, truck tires, computers, laboratory equipment and an artificial cadaver that may have been used as a prop in a film or video game.
"We believe we can really get into people's closets and bring out the value,'' said Randy Adams, AuctionDrop's chief executive and co-founder.
Adams hopes to expand his company quickly. He expects to open a store in San Rafael in the next few weeks and is considering more locations, from San Francisco to San Jose to the Los Angeles area.
Another chain, QuikDrop, has similar ideas. It is selling franchises but has yet to get into the Bay Area market.
EBay drop-off stores don't generally charge up-front fees for their basic service. Rather, the stores earn commissions based on an item's final sale price.
The commission on the first few hundred dollars is generally between 35 and 40 percent, with a lower percentage on any payment above that. (Some separate fees and commissions charged by EBay also apply.)
Basic service generally includes a seven-day auction featuring photographs and bidding beginning at $1. The stores charge more for extras, such as setting a higher minimum bid, selling at a fixed price, or creating an auction that lasts longer than seven days.
Merchandise left with an EBay drop-off store must meet certain criteria. For example, the shop staff must judge items to be worth at least $35 to $50.
Additional rules prohibit goods such as drugs, alcohol and counterfeits.
The model is similar to consignment stores in the offline world specializing in antiques, clothes and jewelry.
The difference is that items listed for sale on EBay reach a potential audience of 34.1 million registered active users. Consignment stores cater to customers who walk in off the street.
What does EBay think about all of the drop-off shops popping up across the nation? Executives approve of the idea for now.
Kevin Pursglove, an EBay spokesman, said that the drop-off stores may funnel extra business to the Web site.
More listings mean that EBay can collect more commissions and fees, though it's unclear exactly how much extra money this will bring in.
EBay is not involved in any way in franchising the drop-off stores and therefore doesn't directly profit from their existence.
"We're going to keep an eye on it,'' Pursglove said. "And at some point, if we feel there is some way we can work with these companies and make them better EBay sellers, we will.''
EBay has already met informally with some of the drop-off store owners. The company has agreed to pay for some of the stores' advertising, which appears on billboards, online and in local newspapers.
But it's too soon to say whether EBay will get into the drop-off business itself, Pursglove said.
EBay drop-off stores face many of the hurdles confronting any small business. Consumer apathy is, of course, a big risk.
During an hour and a half on a recent afternoon, only two customers walked into the Picture It Sold outlet in Berkeley. Both asked questions, but they didn't drop anything off for sale.
McGinnis, the store owner, said that business is typically slower in the afternoon. He added that he sold $10,000 in merchandise during the first two weeks of business as proof that the drop-off concept has potential.
At AuctionDrop's San Carlos store, business was also slow. The clerk said that only a handful of people had dropped off items for sale by the afternoon. They blamed the dearth of customers on the heat.
Adams, AuctionDrop's chief executive, said he is encouraged by what he's seen so far. He said sales have exceeded expectations, with 6,000 to 7,000 items sold since March, for between $600,000 to $700,000 in total sales.
The stores pay for themselves, Adams said. However, he added, the revenue generated so far has yet to cover the cost of the big investment in the San Carlos warehouse.
Nevertheless, one EBay drop-off store that was not affiliated with AuctionDrop has closed. Vintage on College Avenue in Oakland shut down recently with no word on where the owner went.
Bea Pixa, a retired journalist, said she was a believer in EBay drop-off stores as she looked into a potential bonanza at Picture It Sold the other day.
She was considering selling a book autographed by the notorious pool shark Minnesota Fats.
The clerk couldn't find anything similar for sale on EBay. But she did discover a lot of billiards memorabilia, providing a glimmer of hope that the book might be worth something.
Just a week earlier, Pixa sold a book autographed by Arnold Schwarzenegger on EBay. But it only fetched $22, or about $15 after the commission.
"I was actually surprised that Arnold book I sold didn't buy me that little cottage in the country I wanted,'' said Pixa, who then became more practical. "Obviously, this isn't going to change my life. I just wanted to get rid of stuff.''
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Interesting twist. The lady got LESS than retail price for an autographed copy of her book. What was it P.T. Barnum used to say?
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I saw one of these services advertise here in the Bay Area (San Francisco Bay Area) on highway billboard.
Personally I would not waste my time selling other peoples items.
Too much liability on both ends. The consignee and the eBay buyer could both have problems.
The consignee can say that I never wanted to sell it so cheap and the buyer could say it's not an authentic whatever it is. The seller gets it from both ends, so you can't win.
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<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>EBay has already met informally with some of the drop-off store owners. The company has agreed to pay for some of the stores' advertising, which appears on billboards, online and in local newspapers.
But it's too soon to say whether EBay will get into the drop-off business itself, Pursglove said.
<HR></BLOCKQUOTE>
All that I have seen teaches me to trust the Creator for all I have not seen - Ralph Waldo Emerson
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I know two of the B&M antique stores around here sell on ebay for a fee or commission. I took a look at their auctions. It is a shame that people who bring stuff in to them don't have a clue. They have lousy auctions; poor descriptions, unclear on condition, no clue on S&H charges.
I sure wouldn't use them.
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<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> But it's too soon to say whether EBay will get into the drop-off business itself, Pursglove said.
<HR></BLOCKQUOTE>
Let's see, in predictable PursgloveSpin....
Those would just be "a venue FOR the venue" wouldn't they!???!
I am really beginning to wonder what WILL come to fruition first:
National ID Cards?
Implanted Chips in our foreheads??
Or employee numbers from eBay to all sellers??? http://community.here.com/infopop/em...n_rolleyes.gif
<---Ken....who has been successfully packratting for over 4 decades now!
Check HERE for things dragged down from the attic to sell THIS week!
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<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>But it's too soon to say whether EBay will get into the drop-off business itself, Pursglove said. <HR></BLOCKQUOTE>
oooo I would like to see this from an entertainment point of view, can you imagine their feedback after ooo three months. http://community.here.com/infopop/em...on_biggrin.gif http://community.here.com/infopop/em...on_biggrin.gif
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<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>
"We're going to keep an eye on it,'' Pursglove said. "And at some point, if we feel there is some way we can work with these companies and make them better EBay sellers, we will.''
<HR></BLOCKQUOTE>
Translation
"We're going to keep an eye on it,'' Pursglove said. "And at some point, if we feel there is some way we can glom on to this for ourselves and screw these businesses, we will.''
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<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>EBay has already met informally with some of the drop-off store owners. The company has agreed to pay for some of the stores' advertising, which appears on billboards, online and in local newspapers <HR></BLOCKQUOTE>
What's that phrase eBay is always good at spouting???
Oh yeh...."All sellers are treated the same. It's a level playing field."
Anyone else planning on getting an "advertising allotment" from Meg anytime soon? http://community.here.com/infopop/em...n_rolleyes.gif
<---Ken....who has been successfully packratting for over 4 decades now!
Check HERE for things dragged down from the attic to sell THIS week!
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How is this different from all the sellers who do consignments now? Other than these folks having a pulicized location?
This could be a good thing or bad thing, depending on your point of view. Sellers with a shop already could be up and running pronto with this deal.
Just think of the add on fees for packing materials and handling fees you could stick a customer with. http://community.here.com/infopop/em...icon_smile.gif
Then there's the photo fees.
Then .... well you get the idea http://community.here.com/infopop/em...icon_smile.gif
Now, will ebay move in on this?
My guess would be that they will if they can gain more control over these shops.
Qualifying for the co-op ad money could easily be the way to do that.
Could they scrape a little extra cash out of these shops. Sure, but why should we list all the possibilties here for them to scrape off.
I'm sure they can get all the free ideas they want from the Voices groups or at ebay Live if they listen.
http://community.here.com/infopop/em...icon_smile.gif
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actually I think ebay will pay part of anyones adveertising if you are brave enough to slap an ebay logo on there and admit you "do eBay"
In my business it is almost financial suicide to admit it in a small town.... besides that, I hate doing consignment for most people.
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