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You can’t miss this new retail phenomenon in LA. From Santa Monica to Pasadena, bricks-and-mortar stores devoted to selling other people’s stuff on eBay are opening quicker than you can place an online bid. These eBay “drop shops”, with names such as AuctionWagon and AuctionDrop, want a slice of an online marketplace that sold $24 billion of goods last year. Such numbers mean that Amy Weintraub - who bought the LA franchise rights from the iSold It chain - is not too bothered by the competition. By charging sellers 30 per cent commission, she believes she can take her current two stores profitably up to 20.
“LA is quite a service town,” Weintraub explains. “Busy people will pay for the service. And our reputation as a ‘Power Seller’ means they can feel good about doing business through us.”
These drop shops have now started arriving in Britain. SellStuffEasy, based in Dalston, East London, recently sold a £7,000 fitted kitchen, and has since been offering a Miele dishwasher and a Liebherr fridge freezer (which was seeking offers over 99p when we last checked). More ambitiously, Auctioning4U, which opened its first shop last January in Hammersmith, West London, was this week due to open its third, in Kew. “We’ve got one coming in North London by the end of the year, and we plan to open one a month after that,” explains Christian Braun, 36, the venture capitalist behind the chain. “This business doesn’t work unless you have 30 or 40 stores.”
Braun’s conviction that there is a market stems from personal experience. “My wife and I cleared our house, and offered around 200 items on eBay,” he says. “It was very painful - you have to reply to e-mails all day, count the pieces in your jigsaw puzzles, then wrap everything. We worked out that it took two-and-a-half hours per item. If you don’t value your time, that’s fine.”
Auctioning4U’s strength, he says, is its specialist knowledge that has brought in £330 for a Vivienne Westwood jacket and £1,400 for a 1938 bottle of whisky. Still, the 33 per cent commission seems steep. Doesn’t that limit the business’s appeal? “Absolutely not,” Braun insists. “People come to us because they’re time-poor or don’t have a PC. Or maybe they don’t want the world to know they’re using eBay.”
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