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EBay Auction and Drop-Off Franchises


The continued success of the online eBay auction house means there could be a number of ideal franchise opportunities for those looking to capitalize on the growing number of buyers and sellers using the site.

Drop-off stores provide a local-based way of selling goods on behalf of clients and are great for those people who are too busy to sell directly on eBay.

The bricks and mortar stores allow customers to bring in a wide range of items, including large scale lots such as cars and white goods to smaller items such as jewellery or computer accessories.

The drop-off franchise, in return for a fee, then takes over the marketing and online selling of the product by producing eye-catching auction listings as well as dealing with any questions from prospective buyers. The store can also take full digital photos of the item to ensure that bidders are provided with a wealth of information about the goods. Once the auction is ended, the drop-off franchise then takes care of payment and packages the item off to the new owner.

It is vital that all the items are located in secure warehouses at the drop-off franchise store and are fully insured against possible loss of damage to help protect both customer and franchisee.

Many drop-off businesses tend to offer customers the chance to prelist their items for free if they do not sell the first time and offer the ability to donate items to charity if they remain unsold. In fact, there is a growing number of drop off franchises that only offer services in order to directly raise money for good causes.

As with any franchise, potential investors are advised to make sure they fully research their market before outlaying capital into a venture. In particular, those looking to set-up a drop-off business are advised to make sure that they are no competitors in the nearby area as this could limit overall customer numbers.

It is also expected that potential online auction drop off franchisees would have some experience and knowledge of eBay and how to develop successful listings to generate high sales.

And the nature of the online businesses also means that franchisees must have access to a reliable and secure IT system otherwise they could risk losing potential bids. Therefore, wannabe drop off owners must ensure they opt for a franchise opportunity that can provide adequate IT backup and long-term support.

The amount of commission that drop-off franchises can demand for services can vary, with the majority of main businesses charging between 20 to 40 per cent to help sell clients' goods. However, the growing popularity of eBay means that many people are willing to pay higher fees to ensure their items sell without requiring extensive demands on their time.

Anyone interested in investing in a e-Bay franchise system and becoming an entrepreneur is advised to make sure they consider all alternatives and do not rush into a decision of which franchise most meets their long-term needs.

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