Mike Moran and Doug Feirstein figured “there had to be a better mousetrap, a more fun, easier way to bring the service of eBay consignment to lots and lots of people,” says Moran, a self-described “serial entrepreneur.”
“The amount of buyers on eBay far outnumbers the sellers,” points out Moran. “I think today it’s about a 20-to-1 ratio.”
The problem is that eBay remains daunting to those with little Web savvy, a larger percentage of the population than many realize. “It takes the more experienced end-user four hours to learn how to list” for the first time, estimates Moran. “[eBay] is probably not going to be a mainstream service that those people are going to do themselves.”
PinkPackage.com is clearly an unusual e-business, as no transactions take place on their Web site. Here’s how the process works: Let’s say a woman wants to sell some of her used handbags on eBay. She visits the Pink Package Web site, where she quickly finds the closest independent “consultant” in her geographic area.
They then decide on a theme for a party that the seller will host – in this case, handbags or fashion accessories. The newly-minted party host invites 10 to 20 of her friends, as well as the consultant. The friends all bring appropriate items (for example their own old handbags) they want to sell on eBay, which the consultant collects, giving them all receipts.
The consultant sends all the items to Pink Package headquarters in Fort Lauderdale, where items are authenticated, described, photographed and posted on eBay.
The sellers receive 50 percent of whatever is made in the auction, in the form of a pink check in the mail; the party host gets 75 percent for her items that sell; the consultant keeps a commission; and PinkPackage.com gets the rest.