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We were just like you. We wanted to open an eBay Drop
Off Store. We had a million questions and no place to turn.
The process of looking for a location, designing the store layout, working
with the contractor and pulling building permits can be pretty frustrating
especially with no frame of reference. While we knew that there were a
lot of steps involved it was still surprising how much time this process
can consume. We also discovered that the order in which the steps are
carried out can make a big difference in how quickly the store can be
set up. Once the store opened there were even more questions such as how
to run the shipping and packing side of the business, figuring out an
accounting program, paying customers, managing inventory, what software
to use to automate most processes, and plenty more!
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So, for benefit of potential future franchisees,
we painstakingly mapped out every process. We built a 300 plus page owners’
manual. We designed our store and patented the name. We even designed
and built our own software to integrate with eBay and FedEx in order to
save time and money. In the end we built a great program that kept our
labor costs low and our efficiency high.
We were all set to apply to the U.S. government to franchise our business
when we took a step back.
We thought about our future franchise owners. It’s true that in
the beginning you will need a lot of help. Someone to teach you the ropes.
Things like building permits, taxes, registration, construction, signage,
trademarks, eBay itself, PayPal, etc., can be very difficult to tackle
on your own. Then, what do you do once you are open? How do you check
in an item? How do I pay my customers? What happens when I get busy? These
are all questions that need answers.
The problem with the franchise model is that you keep paying the franchise
royalties, advertising fees and even software licensing fees after all
your questions have been answered. YOU SHOULDN’T! We just couldn’t
justify taking money month after month when you did all the work. IF EBAY
IS THE PRODUCT, WHY PAY A FRANCHISE FEE?
In the program we outline the steps in the proper sequence. We also provide
plans and specs for the store layout which include the custom designed
counter as well as all of our vendor names and contact information.
What you say to your customers, your commission schedule, how the benefits
of your organization are presented and the process of getting items into
the store, up on eBay and then out the door will have a tremendous impact
in the success of your business.
We initially did everything using paper forms and Excel spreadsheets.
However, we eventually determined that we could raise our commission if
it was presented better and we could maximize the output of our flexible
labor force by retooling the methodology of taking in items and getting
the items on eBay and out the door. Basically from the day we started
to the way we operate now just about everything has changed.
In the program we divide the business into two parts: the front and back
of the house. The front of the house operations like in most organizations
is focused on sales, marketing and customer interaction.
The back of the house operations is run like a lean factory. The back
of the house operations include storing items, picture taking, writing
descriptions, loading auctions onto eBay as well as packing and shipping.
With the help of an ex-GE process engineer we have developed a system
and methodology to maximize speed and quality with the intent of reducing
labor costs. This is an area commonly overlooked when initiating this
business. However, if the goal is to list a lot of items on eBay if you
do not have an efficient process you can literally grow yourself right
out of business due to costs. We have also developed a software package
that further automates these tasks. |