eBay Drop-off Store Industry Survey

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February 5, 2005 by Dane Carlson | 0 Comments

Earlier this month more than fifty eBay drop-off stores completed a questionaire for AuctionBytes. The results are very informative for anyone interested in the business:

76% of respondents said they were independent eBay drop-off stores with one or more locations. 22% said they were franchises or chains with plans to go national within the next 12 month. 2% chose “other.”

The revenue stream for the majority of these stores came solely from their consignment business. A few offered sideline services, such as Web hosting, site design and shipping. The majority of respondents kept their stores open more than 40 hours per week, had 2-4 full-time employees and 2-4 part-time employees.

Most drop-offs spent in excess of $500 a month to market their businesses, with newspaper advertisements being the favorite method of marketing.

The majority of stores responded that they served between 1 and 30 customers per week, and each customer, on average, brought in between 1 and 10 items to be listed. The average selling price (ASP) per item varied a bit between franchises and independents. The weighted ASP for independents was ~$75/item. For franchises, it was higher at ~$91. The average sell-through rate (again, weighted avg.) for these stores was ~73% for independents and ~77% for franchises.