QuikDrop is closing its eBay drop-off store franchise business at the end of the month, but franchise stores will be able to continue to use the QuikDrop name, logos, and signage. A conversation with the company’s cofounder Jack Reynolds on Wednesday netted a laundry list of complaints about the challenges of selling on eBay that contributed to his company’s demise, beginning in 2006 with the Stores search and fee changes.
QuikDrop storeowners did not seem surprised at the news of the closure, which arrived via email from QuikDrop headquarters on Friday night – and some actually seemed relieved.
The number of QuikDrop stores shrunk from a high of 95 in mid-2006 to under 30 stores today. Reynolds said the store closings, combined with a number of stores who were unable to pay franchise royalties, led to the decision to close the corporate franchise office.
In late 2005 and early 2006, Reynolds said eBay worked on joint marketing with QuikDrop and things were going well. eBay discovered that consumers who visited drop off stores became more active as buyers on eBay, so the auction site marketed to people who weren’t sellers to promote eBay Trading Assistants. But things took a downward turn in 2006, he said.
Read more in an article by Ina Steiner in Auctionbytes.com
Read an earlier article on Franchise Pundit about eBay Drop Off Franchises
Cross posted at Let’s Talk Franchising
<!– –>
Similar Posts:
- An insiders view on why eBay Franchise Drop Stores failed
- eBay drop offs
- eBay Drop-offs
- If students can do it without a franchise…
- Need to buy a license from your state to sell on eBay?
With over 25 years of franchise, marketing, and entrepreneurial experience, and the owner of Franchise Perfection, Jim Coen, brings key skills to franchise consulting for those interested in buying a franchise business opportunity.
Jim has been a franchisee, worked for franchisors, ran a multi unit operation for a franchisee, and served as a franchise consultant matching candidates with the right franchise.
At Franchise Perfection there is no perfect franchise, but there is always a perfect match.
For over 20 years Jim worked with Super Coups. Super Coups is a MA based direct mail franchise business to business opportunity.
Prior to Super Coups Jim successfully marketed franchises in the New England area for Uniglobe Travel Northeast a travel franchise, Merry Maids a maid cleaning franchise, & Emack & Bolio an Ice Cream franchise.
Jim was the host of a popular radio show in the Boston Area called "Let's Talk Franchising" that was broadcast on AM 1060 WBIX The Boston Business Station.
Jim currently serves on the Board of Directors of the New England Franchise Association (NEFA) www.nefranchise.org
The iSoldit debacle foreshadowed the problems that this industry had.
Ironically, given all these failures, a proper franchise system could be constructed. The network effects would depend upon the physical franchisee’s screening for counterfeit, fakes, or stolen property.
eBay is being sued by Tiffany’s for allow fakes or counterfeits on the system; if they win their lawsuit there is going to a huge opportunity here.
But the drop-off idea is a non-starter; a better idea is to network together various physical second hand, pawn, or the like and build in the proper reputation checks.