09-12-2006, 11:49 AM
Quote:The QuikDrop system -- a chain of eBay drop-off stores -- has lost one of its original members in Tampa Bay after canceling a development agreement for what was projected to be two dozen stores in western Florida, its former area developer said.
While the company says it still has area development programs in place, including ones in central and southeast Florida, the changes are a sign that eBay drop-off stores, a once-hot small business concept, are dealing with growing pains.
Several companies, including QuikDrop, are looking for ways to keep fresh that include new inventory and partnerships.
For some of the chains, there's a trend of area distributors losing money after investing a lot to open...
full article: http://msnbc.msn.com/id/14794666/
Quote:In June 2005, we covered the then white-hot business concept of the eBay consignment drop-off store. Virtually nonexistent prior to 2003, by 2005 "Entrepreneur" magazine was touting the drop-offs as "One of the 13 hot businesses of 2005," and, by mid-year, there were thousands of independent and franchise eBay drop-off stores across America.
Now, 16 months later, we have revisited the eBay drop-off store industry to discover if it is a modern day tulip craze or a business model with legs...
A Closer Look: Tepid Growth, Closings, Dashed Dreams
While all this seems to bode well for the franchise industry, a closer examination tells a different story. For instance, iSoldit widely boasts having "sold" 900 stores, and that the company plans to expand to 3,000 stores in the 50 states. But iSoldit Senior Vice President of Marketing David Crocket acknowledges that of the 900 "sold" stores, only 182 stores are currently operating. The remainder are "under contract" to individuals either as single stores or territories ranging up to five stores. When pressed, iSoldit acknowledges that they are still "conducting studies" as to the overall expansion feasibility of the industry within a 1,000 to 3,000 store range...
full article: http://www.ecommerce-guide.com/news/news...hp/3631266