QuikDrop International expects to expand its franchise chain of eBay drop-off stores from 8 to more than 200 locations in the U.S. and Australia by the end of this year, with about half of the U.S. sites operated by a former franchise owner of Mailboxes Etc. stores, QuikDrop co-founder Jack Reynolds tells Internet Retailer.
QuikDrop is one of about 20 new companies that are offering consumers the chance to drop off products at a physical store to be listed for sale on eBay.com. But Reynolds says QuikDrop is differentiated from the others by its effort to quickly build out a franchising operation, while other drop-off chains offer a mix of company-owned and franchised stores. "Our mission is 100% franchising," he says, adding that QuikDrop is already processing about 150 applications from people who want to buy a QuikDrop franchise. "We believe a local entrepreneur will provide a higher level of customer service than someone punching a clock for someone else."
QuikDrop, based in Costa Mesa, CA, is already registered as a franchising company in 39 states and expects to be registered in all states later this year, Reynolds says. QuikDrop, which operates a franchising office in Carson City, NV, charges $50,000 to open a franchise store.
Unlike some of its competitors that plan to provide support operations through regional hubs, QuikDrop conducts all eBay listing services – including taking digital photographs of products, posting listings on eBay and operating payment processing software – at each individual store. "We think the hub-and-spoke model increases costs through duplication of efforts, and that the way to save is by cross-training people in stores to do multiple things including photographing products and shipping products," Reynolds says. QuikDrop stores also provide consumers with Internet access terminals for conducting price research on eBay, he adds.
In addition to eBay listing services, QuikDrop stores also offer general shipping and fax services.
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