The model assumed that there were enough clients who would not or could not list an item on eBay for them selves. It sounded like a great idea and drop off stores began springing up not only across the USA but Internationally in Canada, Germany, England, Holland and Australia. Auction Drop quickly had to rethink its business model when in June 2004 it announced it had partnered with UPS. This would allow consumers to drop off their items at any of over 3,000 UPS locations. By early last year Auction Drop had closed 4 of their 5 stores. Since then there have been closures amongst other drop off store companies and the expected boom in consignment selling just does not seem to have happened.

No doubt commission fees in the region of 30% or higher have deterred some consumers. And did anyone ever really ask the question, is there a big enough market of people who could not be bothered to list for themselves. Even if there was, would they be prepared to pay someone else a big wad to do it for them. Currently very few of the stand-alone drop off stores appear to be making very much money and many are closing down. One company that does on the face of it appear to be growing is I-soldit. They currently have a turnover of over $20 million through their 140 franchised outlets. This represents an average per store turnover of $150,000, which with a 30% commission would only represent a gross profit of $45,000 before costs. Not a great amount when you consider the investment required for the franchise.

Of course the truth could be that eBay have developed such a simple system for listing items for sale that very few people need to use the drop off stores services. It is probably quicker to sit at your computer and list the item yourself than to go out and take it to a store. There is also little evidence that drop off stores get any higher prices than most individuals and definitely not 30% more. So if it does not save you time or money what is the point?
And it would seem the answer for many is that there isn’t one.