Are eBay Drop-Off franchises sound business models?
The company will be closing not only their stores and franchises, but also according to auctionbytes, close the drop off locations sited in third company locations such as those in self storage depots. Interestingly, having acquired the failed iSold It business from the administrators in May, this year it’s now revealed that only one iSold It franchise remains to be closed.
Auctioning4u has always insisted a central processing hub was essential to running a drop off store successfully. They’re now moving to a home collection model with a DHL option. Home collection is limited however, it will be interesting to see how long this service lasts, especially as to date it’s only been offered in London and Brighton. The DHL option allows buyers from across the country to send goods in to be sold but both these services do nothing to support drop off shops as a viable business.
It’s no secret that Auctioning4u is hugely successful, nor that most of their profits comes from business transactions. Consumer business is profitable, but closing the drop off shops gets rid a problem they just don’t need. Closing drop off shops changes them from a Trading Post to simply a large Trading Assistant.
So if Auctioning4u can’t make drop off shops a viable proposition the question has to be asked again, is this the death knell for the drop off shop?