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News Stories Wednesday, March 8, 2006   
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CompUSA dips into the eBay drop-off business

Joining the several companies that offer a place to drop off items to be auctioned on eBay.com, consumer electronics retailer CompUSA Inc. has launched an eBay drop-off and auction listing and fulfillment service at its stores in Las Vegas and nearby Henderson, NV.

"We are always trying to help our customers unleash the power of technology, and while eBay is a great technology solution for businesses and consumers alike, it's often a hassle when it comes to effectively managing the selling process," said Larry Mondry, president and CEO of CompUSA. "We're in a unique position to simplify this for our customers and at the same time extend their buying power at local CompUSA stores."

In a new twist to how eBay drop-off stores operate, CompUSA will offer customers either cash or gift cards for items that sell through eBay auctions. If they choose cash, customers will receive 70% of the first $500 of the sale and 80% on any additional value. Alternatively, they can choose to receive 80% of the total sale value in CompUSA gift cards.

CompUSA’s drop-off service covers photographing and online descriptions of items to be sold, and boxing and shipping sold products. The retailer did not say if it plans to expand its eBay service beyond its Las Vegas and Henderson stores.

CompUSA, No. 34 in the Internet Retailer Top 400 Guide to Retail Web Sites, is not the first consumer electronics retail chain to offer an eBay drop-off and listing service. Rival Circuit City Stores Inc. launched a similar service for eight months in eight stores last year—four in Atlanta and four in Pittsburgh—in an effort to provide additional services on floor space opened up by the discontinuation of major appliances. “We learned a lot and had a lot of happy customers on the buyer’s side and the seller’s side, but we weren’t getting enough return on investment,” a spokesman said last fall.

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