i-Sold It and eBay Drop-Off Store Franchises: A Sound Investment or Not?

[mandy]

iSold It, the nation's leading eBay (Nachrichten/Aktienkurs) drop-off chain, announced today that it has begun opening stores in Europe and should have over 200 locations in the United Kingdom and Ireland by 2010. The entry into Ireland and the U.K. represents the company's first steps towards developing the important European market, and furthers the company's international expansion, which began with the opening of franchises in Canada in October 2005...

...iSold It is registered to sell franchises in 48 states and currently has 600 stores under contract.

full press release: http://www.finanznachrichten.de/nachrich...814786.asp

[EDIT-thread title edited by Amy 4/12/06]

related topic on iSoldIt:
Becoming a Trading Assistant
http://community.tuliptools.com/index.ph...919.0.html

[diger7]

A few of their stores have terrible feedback!

[sneakymagenta]

eBay feedback is good.  99%

[diger7]

They have several  stores/user ids on eBay.  I came accross one sometime ago that didn't have good feedback.  But you are right most of them are good, and not as bad as some of those shooting star (Meg's fav) sellers.

[regic]

more iSoldIt wombat poo poo a related article 

First-quarter gross merchandise sales at iSold It LLC, a chain of eBay drop-off stores, rose 265% year-over-year to $14.4 million, up from $3.9 million, the company said...

The company, which is forecasting total gross merchandise sales this year of more than $100 million, operates about 200 franchise stores and expects to have 300 by year-end...

full article: http://www.internetretailer.com/dailyNews.asp?id=18213

The article lists iSoldIt's gross merchandise sales but doesn't give iSoldIt's revenues or state whether the company turned a profit during the first quarter.  :

$14.4 million divided by 200=$72,000 average GMV per store in Q1

$72,000 X 30% commission= $21,600 average revenues per store in Q1=the average franchisee grosses enough to be an eBay silver powerseller (silver is $3,000-$9,999 monthly).  It costs $105,000-$155,000 to open an i-Soldit franchise. 

related topic on iSoldIt:
Becoming a Trading Assistant
http://community.tuliptools.com/index.ph...919.0.html

[bargainbloodhound]

Based on those numbers, I think it's probably safe to say it will be a while before the average franchise makes back its initial investment.

[xppman]

I bet they are praying there will be "other platforms" to sell on
to make back there initial investments. 

[amy]

$21,600 average revenues per store in Q1

$7200 monthly before rent, utilities, employees, and other expenses. 

Hijack 

Two years ago 2 franchises opened a block away from us: a Subway and a Papa John's Pizza.  The Subway was closed within 9 months, and the Papa John's  lasted 1 1/2 years before closing. 

End of hijack 

[amy]

On the subject of whether eBay dropoff store franchises are a good investment:

Hi,

What should I do? Ebay Franchise Quikdrop of Urbandale, Iowa sent me an email today that it has closed its doors. They sold an item for me with the auction ending around $1350. Now I don't get any money from that! I was going to use that to further my studies of nursing since my programming job went overseas. I could really use some advice please.

http://forums.ebay.com/db2/thread.jspa?t...1000263045&tstart=0

[amy]

...and here they are (empty store) http://stores.ebay.ca/QuikDROP-of-Urbandale-Iowa
http://feedback.ebay.ca/ws/eBayISAPI.dll?ViewFeedback&userid=quikdropiaurb
http://tradingassistant.ebay.ca/ws/eBayI...gAssistant&page=profile&profileId=157091920

Not a lot of selling activity for a 10-month-old business that has to pay rent on a B&M storefront