Question
Circuit City Closes Four eBay Drop-off Centers
By Ina Steiner
AuctionBytes.com
October 04, 2004
Retailer Circuit City began a program in May to test the concept of selling items for consumers on eBay on a consignment basis. The chain closed four of its eight drop-off centers in September, but said it is still testing the concept in the four remaining Pittsburgh test centers.
Drop-off stores sell items for consumers on a consignment basis. Circuit City's test program is called Trading Circuit and charges a 35% commission for items that sell for $500 or less. Consignors can receive payment in the form of a check or can donate the proceeds to the Boys and Girls Club of America. They can also choose to receive payment in the form of a Circuit City gift card, in which case they receive 110% of the total payment due them.
Circuit City spokesperson Steve Mullen said Trading Circuit is a test business. They got "somewhat uneven results," he reported, and decided to close the four Atlanta centers to control costs and focus their efforts on the Pittsburgh centers. "We are learning lots of lessons," Mullen said.
The drop-off center in each store does its own listing on eBay. They use the extra warehouse space that was freed up when Circuit City stopped selling appliances. Consumers access drop-off areas from where they used to pick up appliances at separate entrances in the stores.
The first Trading Circuit opened in the Atlanta suburb of Morrow, Georgia, on May 15. The remaining three from Atlanta as well as all four Pittsburgh stores opened on June 21. The four Georgia locations closed on September 24.
Circuit City competitor Best Buy is rolling out a test program today. Four stores in Northern California will act as drop-off points for the AuctionDrop consignment service.
http://www.tradingcircuit.com
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An absolutely DOOMED concept....
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might have worked.................5 years ago.
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It sure didn't take long to tank.
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Their biggest error was starting in Atlanta.
Had they started somewhere 'less sophisticated', they MIGHT have had a chance.
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I've been waching these places with interest.
Mainly because 90% of the stuff I sell is just that, drop-offs.
I don't do it for the money, or I wouldn't do it this way at all. Ebay is my hobby not my job. I do it for fun and am satisfied if I break even, delighted when I do better. I use it to help out some local charities, and bond with my friends and family (aka my suppliers).
Plus it's a lot of work not only to keep up with ebay's constant changes, but also to list items where every one is unique, and most are things I have never encountered before. So I am constantly challenged and learning.
If I wanted to make money, I'd have product lines, not do it the drop-off way. So when I see news about these huge drop-off stores, I find it very interesting indeed.