728_header.jpg (23748 bytes)
Google  Web AuctionBytes  
eBay Live 2008 Recap
News!
Pictures!
Podcasts!
Blog!

Sponsor

Home
Subscribe
Blog
Podcasts
Forums
AuctionBytes TV
ABU Back Issues

COOL TOOLS

Calendar
Collectors' Links
eBay Promo History
Bookshelf
Fraud Resources
Auction Site Fees
Auction Management
Payment Services
Storefronts Chart
Sniping Chart
Consignment Services
Drop-Off Store Laws
Ecommerce Resources
Photo Tips
Marketing Inserts
Bill the Postman
Yellow Pages
Classifieds

AUCTIONBYTES

Our Writers
Write For Us
Partners
Press
Advertising
About Us
Link To US

Auctionbytes-NewsFlash, Number 868 - October 13, 2004 - ISSN 1539-5065      Previous Story | | Next Story

eBay Drop-off Stores Go International
By Elisabeth Townsend
AuctionBytes.com
October 13, 2004
AddThis Social Bookmark Button

Since 2003, eBay drop-off stores have sprung up all over the world including Australia, Canada, England, and Germany. Some of the new players include SellStuffEasy Ltd., SoldSmart International, and Dropshop Ltd., and all have plans for expansion. Like U.S. stores, they're aiming primarily for individual customers who haven't tried online auction selling on eBay. But they're also setting their sights on business customers handling direct sales, liquidation, and excess stock.

Taking items on consignment, they manage all standard aspects of the sale. Fees vary from about 20-32 percent. Although these stores sell a range of electronics as do American drop-off stores, there are a few surprises.

SellStuffEasy Ltd., England
"We have probably been the only eBay drop-off store to have sold fully fitted kitchens!" claimed Darren Henderson, co-founder of London-based SellStuffEasy Ltd., in an email (http://www.sellstuffeasy.com). "We sold two kitchens in the last few months for people in their own homes."

"SellStuffEasy, eBay made easy" is the name that Henderson and his partner Benjamin Nel created when they were trying to think of ways to make selling on eBay easy for people.

Though SellStuffEasy only opened in March 2004 and is one of the first drop-off stores in England, it has outgrown its current store and is buying a larger one in North London. Expecting 200,000 - 300,000 pounds turnover in the next year, and despite expensive retail space, they plan to expand their London-based operation with four or more stores in the city in the next year or two. And there is another competitor in London, Auctioning4u.com (http://www.auctioning4u.com).

SellStuffEasy has some business customers, offering sales & liquidations services, but it has focused on consumer sales. There are differences from the American market.

According to Henderson, eBay isn't as popular in the United Kingdom as in the U.S. or Germany. That continues to present special marketing challenges in convincing people to use online auctioning. SellStuffEasy advertised with Google AdWords. They also distributed leaflets, but Henderson concluded that the English don't like direct marketing.

Another difference is "the majority of people [in London] do not drive," wrote Henderson. Most customers would prefer to call the store to arrange a sale and then want their items picked up; a service the company offers for a 15-pound fee within London. Even so, some do visit their store.

Either way, it seems to be working. "At least 65 percent of our customers are repeat customers or friends that they have recommended," said Henderson.

Successful sales have included electronics such as flat screen monitors, printers, computer peripherals, etc., and designer clothing and accessories. Henderson anticipates growth in both areas.

SoldSmart International, Australia
Large birdcages sell well on eBay Australia according to SoldSmart International's CEO Alex Popyrin (http://www.soldsmart.biz). Beyond birdcages, SoldSmart sells a range from brand clothes, plasma TV units, electric scooters to tapestries, and giftware.

In business since 2002 and based in Sydney, SoldSmart is the first company in Australia to offer drop-off stores, and concentrates only on eBay Australia, the largest auction site in the country. The company also manages branded sites for customers, sells items for individual customers, and has corporate clients.

SoldSmart is profitable and "attracting interest from our local venture capital community," said Popyrin. In the last nine months, they have been growing an average rate of 24 percent a month. In the top ten sellers on eBay in Australia, they're dedicated to managing their growth by improving their operations, especially their software systems and processes.

Dropshop Ltd., Germany
Designer furniture is a big seller for Munich-based Dropshop Ltd (http://www.dropshop.de).

Open for business since October 2003, Dropshop, the first retailer in the country, concentrates on eBay Germany, the largest auction platform in Germany, yet it does sell some on Germany's version of Amazon.

Though Dropshop works with businesses, it focuses on the consumer market. Currently, all goods delivered to their sites in retail shopping areas are handled by professional photographers, listers, and shippers in their Bavarian hub. They too offer pick-up services.

Founder, CEO, and Chairman Bart Swanson believes that knowing what to refuse is one of the challenges for Dropshop and said they "only accept items that we believe will sell on eBay for greater than 50 euros." Plus, he wants to deliver a "good customer experience, both for the buyer and the (product) owner," including a high-quality item description.

They plan to expand too, according to Swanson, with "several new stores in Munich, and...(in) several additional metro areas in the next six months." According to their Web site, "Dropshop Ltd. has the financial backing from global venture capital firms Benchmark Capital and Index Ventures, who have been behind ecommerce consumer powerhouses such as eBay and Betfair."

No wonder they've attracted venture capital. "Several of the founders of Dropshop worked for many years building Amazon in Europe, and were involved in launching the Amazon auction platform and zShops in both Germany and the UK," Swanson explained.

"We became very familiar with the eBay system, and at the time worked with lots of power sellers," Swanson said. "Given the hassles of listing, starting a service to help consumer and businesses seemed logical."

You can find more about eBay drop-off stores, including a chart of stores and links to articles, on the AuctionBytes Resource page devoted to consignment selling: http://www.auctionbytes.com/cab/pages/consign


Email this story to a friend.

Previous Story | | Next Story

Related Stories
  • eBay's Trading Assistant Program Offers Support for Consignment Sellers - July 13, 2003, Issue #98
  • Auction Drop-Off Stores Offer Consignment Services to Non-eBayers - November 02, 2003, Issue #106
  • AuctionDrop Fundraiser to Kick Off New eBay Drop-off Store - November 14, 2003, Issue #648
  • AuctionWagon Launches eBay Drop-Off Store - November 25, 2003, Issue #654
  • AuctionDrop Holds Grand Opening for Fifth eBay Drop-off Store - February 05, 2004, Issue #695
  • Report from Germany: Starting an eBay Consignment Business - February 08, 2004, Issue #112
  • Battle for eBay Drop-off Stores Heats Up - February 10, 2004, Issue #697
  • More eBay Drop-off Stores Open in Kansas, Colorado, California - February 18, 2004, Issue #702
  • Resaleworld Launches Software for eBay Trading Assistants - February 20, 2004, Issue #704
  • Letter from an eBay Trading Assistant: SoldontheNetCom - March 07, 2004, Issue #114
  • QuikDrop to Rollout eBay Drop-Off Stores in Australia - March 10, 2004, Issue #715
  • Another eBay Drop-Off Store Gets Venture Capital Funding: NuMarkets - March 16, 2004, Issue #719
  • New York Authorizes QuikDrop Franchise for eBay Drop-Off Stores - March 18, 2004, Issue #721
  • eBay Drop-off Stores: QuikDrop Rolls Out in Florida and Other News - March 25, 2004, Issue #725
  • eBay Drop-off Stores Expand Franchise Efforts - March 30, 2004, Issue #728
  • e-Powersellers Sells Drop-Off Store Franchise on eBay - April 01, 2004, Issue #730
  • Sell2All Launches DropPro Services for Selling on eBay - April 08, 2004, Issue #735
  • eBay Drop-off Store 'Ways Center' Moves Store Location - April 19, 2004, Issue #742
  • eBay Drop-off Stores Keep Rolling, NYC & Chattanooga Next Stops - April 20, 2004, Issue #743
  • From Sacramento to Australia, New eBay Drop-off Stores Open - April 27, 2004, Issue #748
  • Snappy Auctions to Exhibit eBay Consignment Franchise - April 30, 2004, Issue #751
  • TidBids Drop-Off Store for Sale on eBay - May 12, 2004, Issue #758
  • Collectors Universe Partners with eBay Drop-Off Store - May 17, 2004, Issue #761
  • eBay Drop-off Store Opens in London - May 26, 2004, Issue #768
  • eBay Drop-off Store Launches Multi-Million-Dollar Campaign - May 31, 2004, Issue #771
  • iSold It Launches Nationwide eBay Mail-in Service - June 02, 2004, Issue #773
  • eBay Drop-off Store News Update - June 08, 2004, Issue #777
  • eBay Drop-off Service Offers Free FedEx Pickup - July 13, 2004, Issue #803
  • Collectors Universe Signs Agreement with eBay Seller Vintage Roadshow - July 17, 2004, Issue #807
  • eBay Drop-off Store Honored as Most Innovative Consumer Company - August 02, 2004, Issue #818
  • eBay Makes It Easier to Find Consignment Sellers - August 19, 2004, Issue #831
  • Seven Tips for Running an eBay Consignment Business - August 22, 2004, Issue #125
  • eBay Drop-off Store News Roundup, August 30, 2004 - August 30, 2004, Issue #837
  • eBay Drop-off Franchise Grants Development Rights in LA - September 07, 2004, Issue #842
  • Consignment Selling Software for Online-Auction Sellers - September 26, 2004, Issue #127
  • eBay Drop-off Chain Tests Program with Best Buy - October 01, 2004, Issue #860
  • Circuit City Closes Four eBay Drop-off Centers - October 04, 2004, Issue #861
  • eBay Drop-off Stores: News Roundup - October 05, 2004, Issue #862
  • eBay Consignment Strategy: Helping Non-Profits with Fundraising - October 10, 2004, Issue #128
  • Postal Annex+ Mail Service Locations to Offer eBay Consignment Services - October 27, 2004, Issue #878
  • eBay Drop-off Business Offers Nationwide Pickup through USPS - November 11, 2004, Issue #888
  • eBay Drop-off Store Industry Survey Results - January 23, 2005, Issue #135
  • AuctionBytes Survey Gives Insight into eBay Drop-off Stores - January 24, 2005, Issue #938
  • eBay Drop-Off Stores News for February 23, 2005 - February 23, 2005, Issue #960
  • eBay Drop-Off Stores News for March 15, 2005 - March 15, 2005, Issue #974
  • eBay Drop-off Store Owner Faces Charges He Violated Local Regulations - March 30, 2005, Issue #985
  • eBay Drop-off Stores: How to Comply with State Regulations - April 03, 2005, Issue #140
  • FoundValue: A Twist on eBay Trading Assistants - April 17, 2005, Issue #141
  • eBay Says Failure to Kill Bill a 'Defeat for All Sellers' - April 27, 2005, Issue #1005
  • eBay Consignment Corner - News Roundup April 26, 2005 - April 27, 2005, Issue #1005
  • Assembly Bill 1178 and Its Effect on eBay Drop-off Stores - April 29, 2005, Issue #1007
  • California Delays Bill Regulating eBay Drop-off Stores - June 06, 2005, Issue #1033
  • eBay Drop-off Store eXsellera Up For Sale - June 30, 2005, Issue #1053
  • eBay Drop-Off Store Owners Arrested over Finger-Printing Dispute - August 29, 2005, Issue #1095
  • eBay Drop-Off Store Loses Legal Motion in Compliance Case - September 16, 2005, Issue #1109
  • eBay Sales Surpass $10 Million at QuikDrop eBay Drop-Off Stores - October 04, 2005, Issue #1121
  • DropSpot Opens eBay Drop-off Store in Belgium - October 24, 2005, Issue #1135
  • eBay Drop-off Chain Sells $5.1 Million in Goods in October - November 02, 2005, Issue #1142
  • New York eBay Drop-Off Chain Closes Doors - January 11, 2006, Issue #1192
  • Oldest eBay Drop-Off Store Goes Out of Business - January 13, 2006, Issue #1194
  • eBay Changes Trading Assistant Program for Consignment-Sales - January 17, 2008, Issue #1707



  • Discuss this story in our forums.

    Ecommerce Podcasts

    Site Index
    Copyright 1999-2008. Steiner Associates LLC. All rights reserved