Question

EBay drop-off stores largely failed. In your opinion, what do you think they could have done differently?

as a business model?

It seems that the business model was based on the belief that people did not know how to post on eBay or did not have time so would just bring their goods into a store and come back in a few days for what the goods sold for, minus a commission of 25-40%.

A prevailing complaint was -- and you see this on shows like "Pawn Stars" -- that people usually think their goods are worth more than what people are really willing to pay. So a guy brings in his item, thinking it is worth $1000, it sells for $200, he leaves with $150 after commissions, disappointed. He is not likely to come back.

With that client psychology in mind, how could an eBay store succeed?

1 year ago - 2 answers

Best Answer

Chosen by Asker

The problem is not the store business model, but rather the risk and fees associated with selling on eBay, including eBay fees, PayPal fees, postage, and the overhead of the business.

To be honest, one can sell quite quickly by listing on a free classified service for the net for the drop-off store, so it's no wonder sellers are upset.

1 year ago

Other Answers

I think they would have to switch to a Buy It Now model, with a fee for any listing that didn't sell. This would mean the store owner would have to do a good job pricing things to sell well, and the fee would ensure the store doesn't lose money. Of course, if the store owner is good at pricing, they wouldn't even need the fee.

This would make it more like a traditional consignment store, where the merchandise owner gets to set a specific price, but the store owner can decline to handle the sale at that price. I'd be more than a little surprised if most consignment stores weren't already doing this with select items, anyway.

by Gerry S - 1 year ago