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Online Biz A Bust eBay auctioneers hit hard times - Click here to read full article

Many independent online brokers have gone out of business, leaving customers asking about their money and sellers wondering what happened to their merchandise.A year ago, Mike Hoffman thought his online consignment store would work. It was busy at first, but a few weeks ago Hoffman had to close his online auction business.So customer Don Welch is wondering about $700 of household items he left to be sold on eBay."Lie to me if you have to," said Welch. "Just tell me something. Don't leave me in limbo. Where's my money? Where's my product?"By phone, Hoffman says he had computer records problems, "But I'm making everything right with people. I always ran an honest business and never tried to deceive anyone."Sell Smart joins another online consignment store, E Street Auctions, in hitting the delete button.

But those two online consignment stores in Omaha aren't the only ones that closed in recent weeks. A customer of one located near 119th and I street contacted Six On Your Side. He's been unable to contact the owner and find out what happened to products he brought there to put on eBay"John McDermott has been waiting for a response from Auctionetics, which put an estimated $500 in motorcycle parts on eBay for him."He should at least contact you and tell you if he's gone out of business," said McDermott. "If he's going out of business (he can) afford you the opportunity to retrieve your property."The owner of Sell Smart says he couldn't make a decent living with online consignments.

The more merchandise you get in, the more labor costs go up."They might have a great idea but they need to figure out how to make money"But customers say they shouldn't be the one's left out in the cold.The Heartland Better Business Bureau has few complaints on the industry as a whole.But the owner of Auctionetics did not immediately return calls from Channel 6.

Havelock auction seller says Web site can prove to be good place to buy - Click here to read full article

HAVELOCK - If buying and selling at a yard sale can be described as fishing in a small pond, then the same activity on the Internet is best compared to fishing in all of the Earth's oceans - sharks and all.

Few people in Havelock know the intricacies of eBay commerce better than Steve Joyner, owner operator of Pack and Mail Plus, in the Westbrooke Shopping Center.

Joyner is one of hundreds of eBay sellers and buyers operating out of Havelock, but his main operation, the packing and shipping store, serves as a springboard for newcomers to the eBay realm.

Entering the world's largest Internet marketplace can be a daunting task for newcomers, and according to Joyner, a number of franchise-style businesses have been available to help make selling on eBay virtually effortless, at a price.

"There are many variations of the same concept," said Joyner as he carefully photographed and packaged a stereo turntable for a customer who wanted it sold on eBay.

"Ours is very basic. You drop it here, we list it, and once it's sold, we collect the payment, deduct commission and send you a check."

The concept is not far removed from consignment store procedures, with the professional, in this case Joyner, taking care of the intricacies of preparing a solid listing complete with good photographs, and then answering the stream of e-mail questions from potential buyers.

Online entrepreneurship becomes a new way of life Internet selling presents surprising career for many - Click here to read full article

In March 2000, Randall Pinson was working his way through college by selling cell phones and pagers in Salt Lake City. To make extra money, he and his partner bought about 160 Nokia cell phones in a liquidation sale, only to discover the devices didn't work outside of New York. They were about to eat a $4,000 loss when his partner suggested selling the phones online.

Pinson opened an eBay account and within a few minutes made back his initial investment. A year later, Pinson quit the cell phone business and went full time into online sales.

"I pictured myself working for a company, making good money, doing market research," the 29-year-old said. "But this thing really turned my life around 180 degrees. I've never been happier."

Pinson is a case study in Internet entrepreneurship: A regular guy has a regular job until he discovers he can make an income selling online. But he's not unique in the way he does business.

Internet users have been turning themselves into Internet merchants since eBay began in 1995. Ten years later, according to a recent study by the Pew Internet and American Life Project, 17 percent of Internet users -- 25 million people -- sell goods and services online. Online auction giant eBay's numbers are even more startling: In 2002, the company reported 24.5 million active users of its Web site; in the third quarter of 2005 that number rose to 68 million.

Although the exact number of Internet salesmen and women is debatable, the variety of goods sold is not. People sell land, houses, cars, electronics, jewelry, collectables and all manner of stuff. Even non-objects, like virtual weapons, armor and monetary units associated with online games like World of Warcraft, can earn a seller some cash.

iSold It making major e-waves - Click here to read full article

PASADENA - For iSoldIt, the good news just keeps on coming. The Pasadena-based eBay drop-off chain recently celebrated its two-year anniversary, with gross sales exceeding $30million dollars and third-quarter sales up more than 1,400percent versus a year ago.

The company announced Monday that it received $7.25million in venture-capital funding from a group of investors led by Jacaranda Partners.Michael Dooling, managing director of Jacaranda Partners and former chairman of Mailboxes Etc., will be joining iSold It's board of directors."We believe iSoldIt is poised for tremendous growth in the rapidly expanding e-commerce category," Dooling said. "In less than two years, iSold It has become the No.1 seller on eBay with over $30million in gross sales volume this year. With additional investment in marketing and infrastructure, we believe we can approach $100million in 2006."

What is iSold It's secret?"It's a service that people need," said iSoldIt founder Elise Wetzel. "People love buying on eBay, but selling requires some heavy lifting, and we make it easy."

Wetzel said a combination of new stores opening up and old stores attracting more and more attention has led to the company's overwhelming success.iSoldIt has 140 franchise stores open internationally, and 600 stores under contract.

Store turns drop-offs into cash via eBay  - Click here to read full article

For those who don't want to make the trek to the mall to return unwanted Christmas presents, there's always an online option. But some people aren't sure how to use eBay and other online auction sites to deal with digital regifting.  So a new breed of retail store is popping up in shopping strips around North Texas designed to help consumers turn excess items into cold cash. The iSold It chain now has four stores in the Dallas-Fort Worth area, and more are on the way.

"We've had our first customer, we think it was a Christmas present they wanted to turn into cash quickly," said Keith Wagner, an iSold It store owner. "[It] still had some wrapping paper marks on it." Chris Jones walked into the iSold It store to sell a VCR to make more room for his Christmas presents. Jones had never sold anything on eBay himself, and decided he would rather not start.

"Garage sales are a big hassle," he said when asked why he headed to the store to sell the VCR. iSold It stores help customers bypass garages by selling items on eBay. The franchise has 11 more locations more planned North Texas in the new year.

Wagner's store, located on Lovers Lane in Dallas, opened Dec. 1. "We believe Dallas-Fort Worth will be the number-one market in the country for iSold It... for this business and for this new concept, which is really only two years old," Wagner said.

The store takes items customers bring in; researches the value of the item; takes pictures; then posts it on the eBay site. If the item is sold, the store keeps one-third of the profit. But if no buyer bids on the item in seven days, the seller can elect to re-list the item, have it donated to the Salvation Army, or simply keep it. While iSold It employees said the old VCR Jones brought into the store may only fetch $30, he said he isn't disappointed. "It's collecting dust at the house," he said. "Whatever it gets is gravy."

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Skip the return counter; try EBay  - Click here to read full article

You may have awakened after Christmas or Hanukkah with a nagging feeling: That item Aunt Ethel gave you just isn't what you want. Or maybe a new computer arrived, and now you have to dispose of the old one. Instead of the junk heap or standing in line to return an item, what about selling it online through EBay? It's not an original idea, I know, but it is one in which millions of people are indulging regularly. On the plus side, EBay will bring a world of buyers to your door: Anyone interested in, say, Grateful Dead paraphernalia will be able to find your signed Jerry Garcia poster in a flash. On the negative side, a single seller has to prepare things for online sale, including photographing and preparing the auction write-up. If that sort of work isn't your thing, a chain of franchise stores called ISold It may be your answer. The concept is simple: The store receives your merchandise on consignment, does the photography, auction write-up and listing on EBay, then ships out the merchandise. This is a true boon when it comes to large or unwieldy items.

That's how I felt about my old Clarion Joyride car stereo/global positioning system auto computer combination. I replaced the 30-month-old Joyride with some new gear and had the old equipment rattling around the back of my Hyundai Santa Fe. I had no idea what it might be worth. If someone offered $50 cash, I might have taken that on the spot. One Sunday afternoon, I pulled into an ISold It store in Gaithersburg, filled out a short form and left the merchandise there to be processed for auction.

What I liked about the ISold It experience was the way my items were photographed and presented. The store has a large photography stand with separate lighting and good digital cameras, which meant the various components of the Joyride could be spread out and photographed attractively. The description was clear and sales-oriented, written in a way buyers were able to grasp, because there was some competition in the bidding.

Within a week, the old stereo was up on EBay. A week after that, it had sold, for close to $400, and in about two weeks after that, my check arrived for about $252 -- my amount less commissions and fees that were about 34 percent of the sale price. All told, it was very painless and more profitable than I might have expected otherwise. ISold It has another Maryland store in Glen Burnie and plans to open several in the District and Fairfax County. A Falls Church store is already open, according to the company's Web site, www.i-soldit.com. Would I use ISold It again? It would depend on the item. If I felt I could better handle the write-up and photography, as well as the packing and shipping, I'd do it myself in many cases. But when it comes to bulky items, or things for which I may not have much enthusiasm, this is a marvelous way to make quick cash.

eBay Seller Profile: Adam Hersh  - Click here to read full article

It's safe to say that Adam Hersh is wildly successful as an eBay seller. His company, Adam Hersh Auctions, completes about a half million auctions per month (though some of those auctions are on Overstock and other marketplaces). The government of South Korea hired him to help them sell on eBay, and Viacom recently invited him to speak to them about eBay sales.

Oh, and he's just 27 years old.

His eBay career began when he was a 20-year-old college student. "I picked something up off the floor, I think it was a cell phone — and it sold," he recalls. "After that I thought 'Wow — what else can I sell?'"

After selling many items of his own and realizing the demand, he began selling other peoples items, working for a 15-20 percent commission. "I started helping out my friends, and helping out their friends, and then I started advertising."

As people kept asking him to sell for them, he hired staff to keep up with the work. "Just by trial and error I was beginning to learn how to sell correctly and how to achieve a higher price, but I didn't know the aspects of various categories - collectibles, antiques, etc."

As he learned more, he began handling consignment sales for companies as well as individuals, and then began buying wholesale goods in bulk to sell on eBay. "There's a much bigger margin when you can afford to buy resell products," Hersh says.

He began focusing on art posters and frames. At this point, he says, "We're the number one art poster and framer on eBay" in terms of sales volume. He works with a long list of poster publishers and distributors, "and we've bought out a few." And he continues to handle other categories. "We've just signed a deal with a major clothing company, handling all their last season's clothing."

QuikDrop to Use Google Base in eBay Consignment Activities  - Click here to read full article

QuikDrop International, a chain of eBay drop-off stores with over 90 retail locations nationwide announced it is now listing all items received from its customers on Google Base and Froogle in addition to listing them on eBay.

"Google Base and Froogle are driving several thousand new potential buyers to our listings every hour," said Michael Banks, President of QuikDrop. "We expect these numbers to increase substantially as more people adopt Google search technology to find products for sale on the Internet. This increased exposure is significant because it allows us to get more money for our customers' items."

Google Base is a service in test mode in which anyone, from large companies to website owners and individuals, can submit content in the form of data items. Included so far are links cars for sale, something that has ecommerce and classifieds sites concerned, especially classified aggregators.

eBay Auction Drop-Off Stores: Part I  - Click here to read full article

Part I: An Inevitable Development

A novel business idea a few years ago, auction drop-off stores now number 7,000 across the United States, with no end to their explosive growth in sight. The largest franchise players, with locations ranging from under a hundred to thousands, include, AuctionDrop, iSoldit, ePowerSellers, PostNet, PictureItSold, AuctionMills, Bidadoo, QuikDrop, Snappy Auctions and NuMarkets — all aimed at the eBay auction venue.

Hot does not necessarily translate into profitable. The phenomenon is so new that no one really knows whether the drop-off stores will be profitable in the long term. Nevertheless, there are some large companies throwing their hats into the ring.

AuctionDrop, which had just a few storefronts a year ago, has recently reached a deal with United Parcel Service to provide walk-in auction consignment service in the 3,700 nationwide UPS shipping stores, making it the largest franchise drop-off store chain. But iSoldit, based in Pasadena, California, currently has 500 franchise stores under contract and claims a goal of opening 3,000 stores in 50 states. PostNet, which has 500 copying and shipping stores nationwide, just added auction-hosting services, and expects to have 100 of its stores selling on eBay by year's end.

Perhaps equal in number to the franchises, are the thousands of independent auction drop-off stores, such as Bob's Neat Stuff, elot, eLOTS, ad infinitum, in every state and increasingly, in Europe and Asia.

Why Now? The Transparency Factor
The "sudden" rush into the auction consignment market is not an accident or happenstance. With eBay and other online auction sites showing the prices realized for products and commodities, as well as the popularity of the Antique Road Show and other programs educating people on the worth of their possessions, the values of merchandise have become increasingly transparent. This results in an increasingly savvy public less willing to give up their possessions at wholesale prices (or less) to dealers. This, in recent years, has shrunk the available market in collectibles and all auction-able merchandise for venders, creating a situation where many eBay sellers are compelled to accept consignments — in order to stay in business.

How Does It Work?
The principle — consignment — is simple enough. The owner of an item consigns his or her property to the auction house or consignor, who, for a percentage of the sale price, handles the sale, collection of monies and shipping to the buyer.

Nor is the idea new to eBay. For years, thousands of eBay sellers, including this seller, have regularly handled consignment sales for third parties — in and out of the antiques trade — who are too busy, inexperienced or disinclined to do the work necessary to sell on eBay. In exchange for a percentage of the sale price, the consignee photographs, writes up and posts the sale on eBay, collects the money, ships the goods to the buyer and pays the consignor.

Traditionally, the general "street price" or standard consignees commission between individuals for eBay auction items selling for several hundred dollars and up has been 25 percent of the selling price plus eBay listing and closing fees, with lesser-valued items commanding up to 50 percent commission, plus or minus the eBay fees.

Moreover, eBay sponsors and encourages a Trading Assistant program numbering over 50,000 sellers (in 2003) who will sell other members merchandise for a commission on the auction site. Consignors key in their zip codes and categories of their consignments and eBay generates a list of trading assistants in their areas. This ends eBay involvement in the program as the company is careful to note that trading assistants are neither employees, agents or independent contractors of eBay, and negotiations are strictly between the two parties — caveat emptor.

The requirements to become a trading assistant are quite loose: the potential assistant must have sold one item on eBay in the past 30 days, must have a feedback rating of 50 or higher and a rather mediocre positive feedback of 97 percent or higher. Negotiations begin by e-mail; generally the item must be worth at least $50; all other terms are set by the trading assistant/consignee.

eBay also sponsors its own drop-off consignment store program known as Trading Posts. Here, the requirements are more stringent: the Trading Post assistant must have a staffed, storefront location with regular drop-off hours, have a feedback score of 500 or higher with at least 98 percent positive feedback and must average at least $25,000 per month in eBay sales. This eliminates all but the biggest of the big on the site.

However, all this barely dents the consignment market. Most people simply do not have a friend or acquaintance in the business with whom they can consign merchandise for sale on eBay, and/or they are not eBay members with access to the site's consignment sellers. Further, according to one source, only one out every 250 people have ever sold something online. For these legions of people in this potentially enormous market, the franchises and independent drop-off stores have stepped into the breach.

The drop-off stores make the consignment process as quick and simple as possible. PC World magazine ran a test consigning $160 worth of identical unopened electronics and tools to three drop-offs: an AuctionDrop storefront in California, a Postnet franchise in Georgia, and an independent drop-off store in Connecticut. At all three locations the consignors spent less than 15 minutes time, including an explanation of the process and filling out forms.

The auctions begin about a week after the items are consigned, and unless the consignor pays for a longer sale, the auctions run seven days. Assuming the item sells, the consignor simply waits for the check (if they do not sell, it must be picked-up at the store, or the consignor pays for return shipping). The drop-off store Web sites try to engender enthusiasm with testimonials on good results (iSoldit claims 160,000 items sold on eBay) and by inspiring auction fever in the potential consignors, such as this blurb on AuctionDrop, "Many report that watching the action as the auction progresses is as much fun as getting the check!"

But all this comes at a price. The drop-off stores commission makes the traditional street consignment fee of 25 percent appear attractive. The franchise drop off stores average 35-40 percent commission on sales of 200-500 dollars or less. With tax, special service fees and eBay listing and closing fees, the total bite can be up to 50 percent or more of the selling price.

The drop-off stores defend their hefty commissions by arguing that they may be able to get higher final selling prices due to better photography, research, descriptions, page layouts and reputation based on more eBay feedback.

As part of their test, PC World themselves auctioned the same goods on eBay, without a middleman. The result was labor intensive; the 15 minutes or less at a drop-off store, grew to eight hours of work from photographing, listing to eBay, boxing and shipping the same items. On the other hand, they got to keep the entire proceeds of the sale less the eBay and PayPal fees of about 10 percent. (It should be noted that experienced eBay sellers as well as drop-off stores could perform the same process in considerably less time than the 8 hours of this experiment, though it is always a time consuming process.)

For the individual consignor, the drop-off stores are certainly more lucrative than a tax write-off from the local thrift shop, and the consignment process is quick and painless; but to maximize your profit, you must do it yourself.

On the franchise drop-off store Web sites, the acceptable consignments favor new, popular merchandise over vintage items and collectibles. On AuctionDrop, for instance, only one store directly deals with antiques and collectibles. In the ten sub-categories under "Cameras and Camcorders" just one, "vintage cameras," applies to collectible material. Electronics, computer equipment, audio and video, cell phones, jewelry and designer handbags, sports and hobby equipment, video game systems and musical instruments round out the list.

The reason may be twofold: besides casting the widest possible net for consignors, individual collectibles are finite in number and require more research, while known, mass-market commodities like iPods, computer equipment, designer jewelry and handbags, have a set price range and a virtually limitless market. None of the franchise sites advertise for books — a very large market within eBay — or certain other niche categories.

All the stores maintain parameters of what they will accept both in terms of value and size. The stores do not want consignors showing up with anvils (though one outfit did sell a full size phone booth.) AuctionDrop maintains a $75 value minimum and a 25 pound weight limitation. Other, smaller chains and independent stores accept lesser value and larger sized items, as well as offering lower commission rates.

In Part II we will discuss the pros and cons of selecting a drop off store for consigning property for eBay auction, the start-up and franchise opportunities being offered by nearly all of the chain drop off companies, as well as the pending legislation and other red flags lurking over this burgeoning market.

Introduction To Consignment Selling

What is consignment selling?

"Consignment selling" means selling items on eBay for other people. There are a number of ways that this can be done, but the most common is for the seller to collect items for sale from their clients, deal with the whole listing and selling process, then pay the proceeds of the sale over to the client, less an agreed fee for the seller's services. If the item does not sell it is either returned to the client or donated to charity. One great advantage of consignment selling is that you do not have to buy items up front - there is no risk of losing money on items that do not sell.

Other approaches to consignment selling include:
Offering it as a free service for friends, family or charities
Leaving the item with the owner and providing a listing service only
Operating a retail store or "drop-off" location where customers leave items at the store, rather than the seller collecting

Why don't people sell their items themselves?

If you have sold a few items on eBay you will know that there is a lot involved in the selling process. For many sellers the process seems easy because they enjoy doing it, but if you stand back and add up all the time involved in a typical sale, you could find that each item takes an hour or more to sell, and sometimes two to three hours.

An hour or more to sell an item may seem unrealistically long, but consider every part of the selling process step-by-step. You could spend 5 minutes to half an hour on each of the following tasks
researching prices
taking photographs
cropping, resizing and editing photographs
writing a description
listing the item
answering questions
corresponding with the buyer (e.g. to obtain payment)
paying in checks
monitoring your bank account for checks to clear
packing the item
shipping the item
updating spreadsheets or accounting software
posting feedback (and dealing with negative feedback)
invoicing and paying the consignor

Looking at the process in detail, an hour's work to sell an item starts looking rather quick.

Most households could easily find ten or more items that are no longer of any use to them, and would raise a few hundred dollars in total if sold on eBay. However, many people are either too busy, do not enjoy working on computers, or simply cannot be bothered to sell their own property - these are the potential customers for consignment sellers. Other common clients are businesses with slow-moving stock, particularly those with limited space to display their stock, such as car and antique dealers.

How do I become a consignment seller?

There are no requirements to become a consignment seller - you simply start doing it. Many consignment sellers start by selling items for friends and family and their business grows by word-of-mouth - this is an ideal way to begin because you gradually learn how to deal with clients and an increasing volume of sales. There are a number of issues to consider with consignment selling that are not an issue when you sell your own items, such as:
Having an agreement in place between you and your clients. A contract should detail the fees that apply, what happens if items do not sell, what happens if the high bidder does not pay for the item or their payment is reclaimed from you, and when and how you will pass the sale proceeds on to the client.

Communicating with clients and managing their expectations. You need to explain to customers that auctions are unlikely to succeed if the starting price is high, and there is a risk of having to sell at a low price.

Providing great customer service to your clients as well as your buyers. You will want your clients to come back to you again and again, so it will help your business if you list their items quickly, provide links to auctions running on their behalf, and pay their balance over quickly, using a method of their choice.

Consignment selling presents a whole new set of challenges over and above normal selling, partly because you have clients to deal with as well as buyers, and partly because your sales volume will be higher. Software to aid auction management, listing, and accounting becomes more important than ever.

How much should I charge clients?

There are wide variations in how much consignment sellers charge, and whether listing and other fees are included in the price. A typical range is 20% to 40% of the final selling price, including fees, and a minimum predicted sale value is often stipulated (it can take just as much work to sell a low-value item as a high-value item). A flat rate is easy for clients to understand, but means you must be sure you can cover listing, final value, and payment fees. Charging a lower rate with fees on top presents less risk for you, but may lead to client confusion and dissatisfaction.

How do I promote my consignment selling business?

There are numerous ways to grow your business. Since consignment sellers normally have local clients, advertising in local newspapers and shops is likely to be appropriate, as well as distributing fliers door-to-door. eBay's "Trading Assistants" program provides a directory of consignment sellers, searchable by area, specialist categories and feedback - to qualify for listing you need a feedback rating of 50 or more, 97%+ of which is positive, and sold at least four items in the last 30 days. If you are an eBay PowerSeller as well as a Trading Assistant, you can take part in their "Co-op Advertising" program under which eBay will reimburse 25% of your qualifying local advertising. Online advertising and offering a physical store or drop-off point can also play a part.

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Stores profit from selling your junk.  National chain emphasizes growing trend in retailing - Click here to read full article

Mitch Peterson, owner of iSold It in Lakeville, took ticket stubs from a 1965 Beatles concert, found out their worth and the best online auction time, and prepared them for the block. His auction made $2,000 — for someone else.

Peterson sells unwanted junk, extra inventory, antique finds — just about anything worth $30 or more — at the first of two iSold It franchises in Minnesota. The store is part of a growing trend of drop-off retailers profiting from online auctions sites, like eBay Inc. The service lets people sell their stuff online — without a computer or digital camera.

There are currently 150 iSold It stores nationwide, with 600 more under contract to open. In addition to the Lakeville store at 7624 W. 160th St., there's one in Edina and three more under contract to open in Minneapolis. The company boasts that it is the No. 1 seller on eBay with $25 million in sales so far this year, said Ken Sully, president and CEO.

"We're just excited that we got the next big idea," Sully said. "It was the right idea, right time and right place. It's a great new phenomena."

ISold It started in Pasadena, Calif., two years ago by Elise Wetzel, former co-owner of her family business Wetzel's Pretzels. Soon after becoming a stay-at-home mom, she was organizing a fundraiser for a new playground at her children's school when she got the idea. Instead of selling wrapping paper or candy, she started collecting donated items from the community to sell on eBay. In the end, she filled a garage with items and had a successful fundraiser. The next year she launched the first iSold It franchise.

The stores can sell anything on eBay, including cars, pianos and jewelry, as long as its estimated value is at least $30. ISold It collects 30 percent commission for the first $500 in sales and 20 percent on amounts exceeding that mark. But customers still pay eBay charges and payment processing fees, decreasing their profits by an additional 6.5 percent. The store deters selling stolen or broken items by getting sellers' identification and making sure the product is in good condition before sending out checks from the sale.

"It's just an easy process," said local owner Peterson.

Peterson, 29, of Eagan, got his "store in a box" in May. He set up the counters, signs, software and shipping materials in eight hours. The franchises can cost $100,000 to $140,000 to start, and owners typically break even within six to 12 months, Sully said. Peterson said he chose Lakeville because of its growing population and well-off neighborhoods. The company opens franchises at strip malls with anchor tenants, like Lakeville's new Kowalski's Market. Peterson said business has increased since the grocery store opened this summer.

Hani Durzy, spokesman for eBay, wouldn't confirm whether iSold It is the No. 1 seller on the site. But even if the company is the top seller, it amounts to a fraction of a percent of eBay's sales, which so far are $32 billion for 2005. Online auction sites have seen third-party trading assistance for at least three years, Durzy said.

Why would people want to pay someone else a commission to sell their old junk on eBay when they can do it themselves for free?

Sully said most people don't because it's too complicated and time-consuming. Only 8 percent of eBay users actually auction their stuff online, he said. Using an expert auctioneer helps people increase their chances of getting a sale and a higher auction price. Also, bidders are confident when they see the company's logo guaranteeing the product.

"Thirty percent of what is always the question," he said. "Is it worth your time to save $30 or not? People don't have to know anything, they don't have to do anything — they just have to bring it in."

How Ebay Consignment Centers Work. - Click here to read full article

You might not ever have heard of eBay consignment centers – don't worry, most people haven't, as they're a relatively new concept. The idea is that you drop off anything you want sold, and then the consignment center will sell it for you and share the profits.

You Can Sell at Consignment Centers.

Just find something to sell and take it to a consignment center – they'll sell it for you on eBay, handling all the listing, description and shipping.

You do, however, give up some profit when you sell through a consignment center, not to mention losing all control over your auctions – and who's to say that you couldn't sell it better than they can? The chances are they will only give you a fraction of the item's real value, to the point where you might as well have just taken it to the pawn shop.

You Can Be a Consignment Center.

A better option is to be a consignment center for the non-eBay-using public in your area. After you've been selling things on eBay for a while and you've told a few people about it, someday a friend will walk up to you and say "Hey, could you sell this on eBay for me?" Give it a try – if you like doing it, then why not start up your own consignment center business?

Put an ad like this in your local newspaper or anywhere else you think is appropriate:

"Create Space and Get Money For Doing It! How would you like someone to come and clean out the old stuff in your house that's taking up all your space, and then give you cash for the lot? I am currently looking for things to sell on eBay and I can do this for you. Call me on [your number]."

Go round to a few people's houses and take some things that you think are sellable, giving the items' owners a sensible amount for them – not too much, since they don't know how much they're worth. It's best to try to take things that are part of a set or collection, so you can sell lots of the same kinds of items. You're in a strong position: why would they so no when you're offering them money for things that, to them, are rubbish?

The only requirement to be successful with this is that you need to know what you're doing, and be able to spot a high-value item when you see one, regardless of what it might be. It's also worth opening a new account to sell items you get from other people. You can't guarantee quality as well, and your regular account should only be used to sell the one kind of item that you decided you're an expert in.

One thing many sellers don't realise when they sell items is that they need to change their strategy depending on what season it is – things sell for different prices depending on the time of year.

eBay Drop-off Chain Sells $5.1 Million in Goods in October - Click here to read full article

QuikDrop International announced its eBay sales surpassed $5.1 million for the month of October at its eBay drop-off retail stores. The company attributes the milestone to strong sales in real estate and eBay Motors as well as over 13,000 completed auctions for consumer items.

QuikDrop founded its first franchised eBay drop-off store in August 2003 and reports 80 store locations in 25 states as well as locations in Australia, Canada and China.

eBay's Director of Marketplace Programs Brad Porteus said eBay expects to see $200 million in gross merchandise volume (the value of goods sold on its site) this year through eBay drop-off stores and Trading Assistants sales. eBay also said it sees consignment sellers moving from servicing consumers exclusively to serving businesses, charities and government agencies as well.

EBay Drop-Off Stores Balking at Regulation - Click here to read full article

As more eBay drop-off stores spring up around the United States to help redistribute the accumulated cargo of an acquisitive culture, some public officials worry that they could become unwitting fences for stolen goods. As some states push to regulate the mushrooming industry, eBay and the stores are joining together to oppose oversight.  The pirate statue had seven days to leave Massapequa, N.Y. And leave it did.  The owner of the statue, which is made of resin with a height of 6 feet, recently took it to the QuikDrop store on New York's Long Island to have it photographed and put up for auction on eBay (Nasdaq: EBAY) for 14 days. An online bidder from Utah paid US$750, and the store's workers packed it and were preparing to send it.  Next in line were 59 videotapes containing several years' worth of "I Love Lucy" episodes, a pile of aluminum wheel rims and a Happy Holidays Special Edition 1988 Barbie.  Such troves of junk are innocent enough. But as more eBay drop-off stores spring up around the United States to help redistribute the accumulated cargo of an acquisitive culture, some public officials worry that they could become unwitting fences for stolen goods. As some states push to regulate the mushrooming industry, eBay and the stores are joining together to oppose oversight.  States like California and Florida are debating whether drop-off stores like QuikDrop International, AuctionDrop and iSold It should be governed by laws that apply to pawnbrokers, secondhand stores and auctioneers, laws aimed at preventing the sale of stolen items.

The focus on drop-off operations is intensifying because they are multiplying rapidly. According to eBay, there are more than 7,000 locations listed in the company's directory of independent businesses, or trading assistants, that sell on behalf of others and offer drop-off services. Many of these, including about 3,800 AuctionDrop locations in UPS Stores, are retail-style storefronts. And hundreds more of these stores are expected to open in the next year.  The stores and eBay have no corporate connection, but they are closely linked. EBay's revenue growth is based in part on signing up new eBay sellers; the drop-off stores help bring into the eBay fold people who might be reluctant to hold an online auction themselves.

In California, where the number of drop-off centers has grown particularly quickly, secondhand dealers are required to report transactions, fingerprint people selling items like high-priced jewelry and electronic equipment, and hold the data for 30 days.
Electronic Database   EBay is lobbying against a proposed law that would set up an electronic database to track stolen goods sold at secondhand stores in California. The state attorney general recently released an opinion that the drop-off stores should be classified as secondhand dealers. EBay asked that the bill exempt the centers from regulation, but such an exemption has not been written into the bill.  "We simply cannot see the need for any of this legislation," said Tod Cohen, vice president for government relations at eBay, which is based in San Jose, Calif. Laws governing pawnbrokers, secondhand dealers and auctioneers, he said, "make no sense for our business."

Some law enforcement agencies argue that drop-off centers could well become new conduits for stolen items as Internet-based crime rises.  So far, there has been little evidence of stolen goods passing through drop-off stores. But law enforcement officials say that is because there is no easy way to track stolen items flowing in and out of the centers.  "People are using pawnshops less and less," said Danny Macagni, chief of police in Santa Maria, Calif. "These eBay drop stores don't have to notify us like a pawn shop, so stolen property could be sold and we'll never even know about it."  The drop-off stores typically take in an item, photograph it, and put it up for sale on eBay. If a sale goes through, the store sends the seller a check, minus a store commission that is often as high as 35 percent, a fee for eBay and other payment processing charges. If the item does not sell within a certain number of days at QuikDrop, the owner is asked to retrieve it.  Crime Online   Macagni said that as more commerce and crime move online, increased monitoring of online sales can only help. "If we wait," he said, "we won't have the ability to deal with this issue."  State and municipal laws regulating pawnbrokers and secondhand dealers vary, but they usually require that dealers report transactions to the police, hold items for a certain period before selling them and even take fingerprints of their customers.

California, Florida and Texas have been considering legislation that would impose regulations on drop-off stores. And in New York City, where secondhand stores must obtain a license and maintain transaction records for police inspection on demand, the Department of Consumer Affairs is considering the question of whether the stores qualify as secondhand stores, said Dina Improta, a spokeswoman for the department.  But eBay executives and store owners say criminals are not likely to walk into a drop-off store, offer personal information, leave a telephone number and wait for a check to arrive in the mail.

Internet drop-off stores pick up on a growing market - Click here to read full article

When Pierre Omidyar founded eBay Inc. in 1995, it's unlikely he imagined the first online-auction site wouldn't just radically change how goods are bought and sold, but would also save marriages.  Yet it has, says Federal Way's Kenneth Byrne, one of several Washington entrepreneurs using eBay to sell stuff gleaned from folks' attics and garages, as well as companies' excess inventory and liquidated goods.  "One customer told me, 'Thank you! My marriage is back together because my wife isn't so upset with me since I cleaned out the garage,' " Byrne said at his fourth "drop-off" store, in Federal Way.  Byrne has set aside $1.2 million of his own money to open 27 iSold It stores in Western Washington by 2009. His drop-off stores give people a place to get rid of unwanted stuff, then sit back and get a check for 70 to 80 percent of the online price after iSold It photographs, describes and auctions the items online.  Byrne, 39, said he missed out on early opportunities to profit from San Jose, Calif.-based eBay, a simple but hugely successful business that carries no inventory, has minimal overhead, requires little capital investment, yet has increased its revenue by more than 42 percent over the past year alone, to $3.86 billion.

So in January 2004, when he saw a televised report on a new franchise called iSold It, he jumped at it. Last summer Byrne paid $285,000 for the exclusive right to open iSold It stores in Western Washington. He said he plans to open a new store every two to four months and thinks the area could support 50 additional stores beyond his 29.  Drop-off stores work because many people lack computers or Internet access, are intimidated by going online themselves to auction off goods, or just don't have the time to do so. They're willing to sacrifice part of the sale price if someone else does the work for them.  And selling other people's stuff is a pretty good business to be in, Byrne said.

A pair of 1950s Levi's, still in their original packaging, brought a surprising reward for both Byrne and the elderly gentleman whose closet they'd been cluttering, selling for $1,100.  In addition to selling other people's stuff, Byrne is serving as a distributor for people importing products from China, India and Iran. He also buys overstock, inventory from companies going out of business or into bankruptcy, and even new products.

Then, with the approval and help of iSold It, he sells that merchandise not only on eBay but also on Amazon.com, Shop.com, Ubid.com, Smartbargains.com and Yahoo! Auctions.  Shop.com and Smartbargains.com allow selling large quantities of identical items at fixed prices. Ubid.com focuses on selling large volumes at auction.

"Sourcing our own products is an important part of our business, because then we're not just earning a 20 to 30 percent commission -- we're earning whatever we can on it and reducing our risk," he said.  One of his stores was operating in the black within nine months, a second within six months. Byrne is now seeking investors in both individual stores and his entire Western Washington organization.

"There is a wonderful upside" in putting goods onto the Internet, Byrne said. "The market of potential buyers is huge -- bigger than any market you'd ever find face-to-face -- and the merchandise I can sell is unlimited." 
Byrne said he chose to buy iSold It franchises in part because of the Pasadena, Calif.-based company's software, which links all franchisees in an intranet, tracks all current and past auctions and produces comprehensive reports. But iSold It is hardly the only franchise building eBay drop-off centers.  At least three other franchise companies are also building nationwide chains, though only one has a presence in Washington. AuctionDrop Inc., of Fremont, Calif., uses UPS outlets as its drop-off points. There are 108 The UPS Stores in Washington, 82 of which are in the greater Seattle area.  At least two local competitors are also active here.

Sarah Carlton, 54, is far smaller than any iSold It store, and she says she likes it that way. She opened u-Bay.biz out of a rented house in Greenwood about a month ago.  Carlton, who declined to reveal her investment, said she needs to bring in $1,000 in sales every seven days to turn a profit. But she's only open four afternoons a week, and so far, she's not making her numbers.  "I'm way far away from breaking even," she said.Carlton is counting on stuff coming in from local estate sales and from nearby homeowners pressed to make hefty house payments. To supplement that income, she's offering $50 classes twice a week for people who want to learn how to sell online themselves. She's also auctioning vintage lingerie, clothing and accessories she finds at thrift shops.   Carlton, who once ran The Elliott Bay Book Co.'s graphics division, said she never even considered buying a franchise instead of starting her own business.  "You've got to pay a lot to get those franchise fees back," she said. "And I'm such a mom and pop, do-it-your-own-way kind of person that I would never want someone else's business model."  Toward the higher-powered end of the spectrum is Seattle's Bidadoo Inc., a 2-year-old start-up funded by private investors. Bidadoo specializes in selling high-volume or expensive items. That includes roughly equal numbers of business-oriented products, such as copiers, computers, tools and machinery, and personal goods such as furniture, jewelry, antiques and electronics.

The 15-person company with two locations -- both in Seattle -- sells goods only on eBay. When it comes to selling business items, Bidadoo competes mainly with live auction houses, such as Kenmore's James G. Murphy Co. and Vancouver, B.C.-based Ritchie Bros. When selling art and furniture, the company competes with Sotheby's, Christie's and Seattle's Pacific Galleries, all of which offer both live and online auctions.

Liquidating excess inventory and obsolete or unneeded equipment is a role only now being undertaken on the Internet, co-founder and president Howard Hawk said. Bidadoo has a 20,000-square-foot facility for warehousing, photographing and shipping those so-called surplus assets.  Hawk said eBay has only recently gained a reputation as a marketplace for high-priced artwork and fine furniture. But as that reputation increases, "the market is so much larger on eBay than with any live auction or high-end online auction that we can get our customers prices that are 50 to 100 percent higher" than they'd get otherwise.

EBay spokesman Hani Durzy said drop-off stores have "a nascent impact on the eBay marketplace, and they introduce people to the power and the idea of eBay. We're very much in favor of these businesses, and we hope they succeed."  "Nascent" is just the word. Drop-off sales are expected to total $250 million of eBay's $40 billion total this year, or less than one-half of 1 percent of the total, said Walt Duflock, head of eBay's "Trading Assistant" program.  Although that's a tiny contribution to eBay's bottom line, it has doubled over each of the past several years, Duflock said. About 15,000 trading assistants, defined as an individual or a single store even if owned by a franchise, sell goods on eBay, he said.

Internet sellers may need auctioneer license - Click here to read full article

To sell consigned goods on the Internet, Mark Nichols may be required to take instruction in rapid-fire speaking, breathing control and reading hand gestures, even though he only needs a computer keyboard and mouse. North Dakota's Public Service Commission is exploring whether people like Nichols, who runs a small store in Crosby in northwestern North Dakota, should be licensed as auctioneers before they may legally use the eBay Internet company to sell merchandise for others. "I don't think it offers any additional protection for the consumer," Nichols said. "It just creates a lot of red tape for the business, as well as having to put out a lot of money."

In North Dakota and other states, the growing popularity of peddling goods on the Internet is prompting scrutiny of whether sellers who hawk others' merchandise should be regulated. The PSC licenses auctioneers and auction clerks, who handle money, bills and paperwork at sales. North Dakota law defines an auctioneer as someone who is compensated for selling property at a public auction "as a whole or partial vocation." The commission is asking Attorney General Wayne Stenehjem for a legal opinion about whether the definition of an auctioneer covers eBay sellers, who post sale notices for goods on the company's Web site and take bids from interested buyers.

Commissioner Kevin Cramer said he did not believe the law affects eBay sellers who peddle their own goods, but said it could apply to people who sell property consigned by others for a fee or a percentage of the proceeds. "Our laws probably didn't contemplate this type of commerce," Cramer said. "It's probably time to take a look at them." To get a North Dakota license, auctioneers must pay a $35 fee, obtain a $5,000 surety bond and undergo training at one of eight PSC-approved auction schools. The cost of attending the closest schools, in Mankato, Minn., and Billings, Mont., ranges from $795 to $1,625 for a week to 10 days of training.

"We teach you to talk to the public, think on your feet, evaluate people, breathe properly and control your voice so you can sustain it for hours," says the Web site of the Western College of Auctioneering in Billings, which holds its classes at a local motel. Gordon Krance of South Heart, who is president of the North Dakota Auctioneers Association, said the group's board has no position on whether people who are paid to sell others' goods on eBay should have an auctioneer's license. Sellers could benefit from attending an auctioneering school, Krance believes. "To me, it would be a plus to gain some knowledge of marketing, of the business end of an auction company, and ways to better represent your clients," he said. Hani Durzy, an eBay spokesman, said the company believes state laws regulating auctioneers and pawnbrokers should not apply to eBay sellers. No North Dakota state agency regulates pawnbrokers, although some cities do.

Although eBay is often called an online auction service, and uses many of the same terms common to traditional auctions, its sales are technically not auctions, Durzy believes. EBay sales give buyers a specific amount of time to bid for merchandise, while a traditional auction sale is held open as long as there are bidders for an item, Durzy said. The company doesn't own auctioned items and has no authority to reject bids. A third of eBay's business is from selling goods for set prices, and auction rules wouldn't apply, Durzy said.

If North Dakota auctioneer licensing law is applied to eBay sellers, the effect would be statewide. The company has a network of "trading assistants" listed on its Web site, who use it to advertise and sell goods for others. Fargo has at least 11 trading assistants within a 10-mile radius, while Bismarck has seven, the eBay Web site says.  In Tennessee, trading assistants and storefronts that sell consignment goods on eBay must obtain an auction "gallery license," which costs $100 annually and requires the holder to undergo 30 hours of education and establish a bank escrow account. Illinois requires Internet auction listing services to register with the Department of Financial and Professional Regulation, which costs $200 annually. California, Florida, Maine, Missouri and Texas have also considered extending auction rules to eBay sellers, the company says.  Nichols runs a consignment store, called Variety Marketplace, in Crosby, and said he has occasionally sold goods on eBay for customers who requested his help in doing so.  He sold a 1938 Ford for one customer, Nichols said. Bidding started at $8,000 and climbed to $14,500 before the vehicle was sold. "Locally, the person would have been lucky even to sell the car, let alone get that much money for it," he said.  Nichols said he will not sell items on eBay for others until the state law is clarified. If North Dakota auctioneer law applied to him, he would be required to get both a $35 auctioneer's license and a $35 clerk's license, because he would handle money from sales.  "Online auctions help create a marketplace," he said. "You can bring in money from outside the community, and that's important to small towns like Crosby, where you need outside revenue coming in."

Where The Hunt Ends offers goods on consignment - Click here to read full article

Debra Bennett, owner of the recently opened Where The Hunt Ends on Broadview Avenue in Warrenton, is trying to provide an outlet for residents who have too much stuff for their own good. She takes items on consignment, researches what they are worth and does her best to sell them within 60 days. According to one customer, it has been working. "The first thing I brought in here was bought by another consignor," said Siggi Salvetti, owner of Siggi's Sports Barber shop in Warrenton, who was bringing in another load of her stuff, including four bar stools. "As you can see, I'm back."

Salvetti instructed Bennett to price the four stools at $250 for the lot. "They're solid oak stools that swivel," she explained. "They cost $175 a piece, and they're in great shape."  Using the 'Net  Bennett uses the resources of the Internet to help her price the items she carries.  "I have a college student who is doing eBay for me," she said. "I give him a lot of items to research.  "I try to get people to price their own items, but sometimes they don't have a clue about what something is worth. It's amazing how much information you can find on the Internet."  Bennett said that in addition to using the Internet to price the goods in her store, she also uses it to sell some of them.

"Mike Day, the college student, has set up an eBay store for me," she explained. "I do a 60-day consignment agreement, and the eBay store gives the consignors a wider audience. A lot of people have been excited about that." Bennett will accept most items.  "I hate to turn people away," she said. "We live in a small town, and I want to help people, but if they have furniture to sell, I ask that they call me first because I only have so much room."  In the shop last week were horse prints, mirrors, artwork, original paintings, silver and jewelry.

"The response has been terrific," Bennett said. "A lot of people have come in already, and they're very excited. I've had some incredible stuff come in. It's been amazing what they've brought in.  "I have so much stuff that I need a bigger building," she continued. "I have a lot of stuff in the basement that I will bring up when the other items sell."  One satisfied customer agrees that the shop is worth a visit, either as a buyer or as a consignor. "This place is wonderful," Salvetti said. "It's so nice to have something like this in town." Where The Hunt Ends is located at 201 Broadview Avenue in Warrenton. The phone number is (540) 351-0997. The store is open Tuesday through Sunday from 10 a.m. to 6 p.m.