Profitability Elusive for eBay Drop-off Stores

By Ina Steiner
AuctionBytes.com

Call it the paradox of eBay drop-off stores. A recent AuctionBytes survey shows that while 63 percent of storeowners say the business has not met their original expectations, the majority expects growth in the area of online consignment services. Thirty-one percent forecast high growth opportunities in online consignment services over the next 12 months, while another 43 percent forecast some growth. And with all the challenges of running a drop-off store, 69 percent of respondents said "educating the public" is one of their biggest challenges, and 42 percent said it is the biggest challenge.

AuctionBytes sent an invitation to 602 eBay drop-off stores in April 2007 and got a 17 percent response rate (101 participated). The survey asked stores about marketing, operations, sales and their overall satisfaction.


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