iSold It Australia Franchise: eBay Plunder Down Under?
April 14, 2007 by Sean Kelly
Filed under Business
At least in Australia, the rumor that eBay drop-off store franchise concept iSold It is fundamentally flawed and not viable must be greatly exaggerated. Otherwise, why would they continue to sell franchises?
Are you seeking a Australian franchise opportunity that’s too good to be true? Then you need to visit the franchise section of the iSold It Australia website (which is almost identical to the iSold It Canada and iSold It UK websites). iSold It Australia is a leader in the booming eBay drop-off store market. But act fast! Opportunities like this don’t last long!
Here are some highlights from the iSold It Australia website (as of 4/17/07). Headlines are ours; boxed text is theirs.
Become the “darling” of the eBay World!
According to iSold It Australia:
…in short order, hundreds of articles and news stories featured iSold It as the new ‘darling’ of the eBay world…. Today, with over 900 franchise stores under contract, iSold It has quickly become the World’s Favourite Drop-off Store.
A New Store Opening Every Day!
You’ll be part of a fast growing chain opening stores (somewhere) every day:
The world’s largest drop-off store network with over 900 franchise stores under contract and a new store opening on average every other day. The clout of our network gives your local store a national presence & immediate brand recognition with your customers.
Superior Technology Makes Operations Effortless!
Proprietary software makes operations a breeze:
The backbone of the iSold It network is our proprietary Store Activity Management (SAM) software. It’s designed to make operating one or more stores simple and effortless…. The software automates many functions leaving you more time to focus on building your business.
No Experience Necessary! The Dream Team Will Teach You!
Don’t have a clue? No problem!
We employ the largest team of drop-off store experts under one roof, providing you with a comprehensive initial training program and ongoing operations & marketing support.
Low Cost Operation!
A retail concept with FREE inventory for only $165,000:
Our store investment is designed to be low. It costs as little as $165,000 for a fully operational store, plus working capital. Enjoy a unique business with no cash registers or receivables and your inventory is provided by your customers.
Four, yes, FOUR Profit Centers!
iSold It Australia stores have four primary profit centers. That’s not even counting the secondary and tertiary profit centers:
And iSold It drop-off stores have four primary profit centers:
- Sales commissions on items you sell
- Materials & packing fees on items you ship
- Discounts off ‘rack rates’ for shipping
- Profit on your own items you sell through the store
How is iSold It Australia Achieving This Success?
Will they share their secrets with the failing U.S. franchisees?
How can iSold It Australia (and iSold It Canada & UK) continue to boldly sell franchises when their UK counterpart is insolvent and their U.S. parent facing the threat of litigation from failed and failing franchisees?
What are the secrets of their continued success?
Will they share their secrets with the U.S. iSold It franchisees who are trying to avoid the fate of the 60 U.S. iSold It eBay drop-off franchised stores that have already closed?
ARE YOU FAMILIAR WITH iSOLD IT AUSTRALIA? LEAVE A COMMENT. SHARE YOUR OPINION.
Related Posts:
Troubled iSold It Continues to Promote eBay Drop-off Franchises Elsewhere
iSold It Canada: A Franchise Too Good To Be True?
NOMINATE A TOP NEW FRANCHISE AT TOPNEWFRANCHISES.COM
Fascinating to look at the Store Locations page on the Australian site – http://www.i-soldit.com.au/ It has markers for sixteen stores “opening soon”. Listed specifically are one store in Geelong, Victoria, evidently operating and one other, in Belmont, Western Australia, with location details and “opening soon”. Not exactly a stampede yet.
Austrailia appears not to have much happening, and both stores in Ireland are closed, and the UK has left the others floundering in the wind.
The fact that they are selling ANY franchises with so many closings and the concept not working, does not show ANY good faith on the part of the franchisor or the area developers.
As for not selling them here, could it be that the mother company has UFOC violations and therefore can’t sell? The dozen or so staff members left at HQ will not be enough to support the “170″ stores they say are still operating. It doesn’t add up!
I have watched the ebay drop off store market down under for several years, and though the concept is sound, the model and system of ISOLDit isn’t. The storesd that will open under this banner will struggle — not because of the concept but more because of the system itself. Look at the store costs and then look at percentage earnings and what needs to be earned to return to positve territory. factor in leases, services and staff (at least 3) then you have a recipe for disaster. The numbers just don’t add up. Australia will see these, so called franchise dreams close just as easily as the USA’s — but, they’ve got money to win over the masses and they quote US figures to support their claims, even though it is still unproven down under.
If anyone has proper press releases that are reliable I would certainly like to see them. I am planning a write up on the whole ebay store setup.
I’m pretty gobsmacked to see we now have 3 stores opening in WA, all in the Perth metro area.
Cannot see them lasting.
Ah, Michael, WA – State of Excitement!
Maybe Burkey and J G can get them some government support? :)
I own the master rights in Australia for Auction it Today, and have made comments here before. The whole drop-off store concept is a financial nightmare and after many, many months research I have discovered that these stores just can’t survive. I have tested the market in Australia – product sourcing, percentages, leases and wages and any drop off store, franchise or not, will struggle.
I have changed how AiT will work in Australia, and in one protest I have actually listed one of my units on ebay (auctionittoday-sak1) just to let people know what the alternative is and how my structure can create better and more solid returns for the franchisee. I don’t expect it to sell on ebay, then that isn’t why it’s listed.
Australian’s are drawn in by all the flash and money waving by ISI. I contacted the ACCC and FCA to discuss the failure of such businesses and was promplty told it is up to the buyer to self regulate. The flawed system wasn’t their concern, just so long as ISI paid their fees to the governing bodies.
Will I succeed in the new venture based on a redesign of the failing system. I hope so, it has cost me over $100 000 to get it right. And trust me, I really didn’t have that much to spare.
Time will tell, but unfortunately a lot of ISI owners will feel greatly let down when the promised dream turns out to be a nightmare.
Development man,
Did you actually opened up a store? Or did you just do your researched and found it was unfeasable?
Interested in the eBay drop-off store franchise phenomenon? See list of all posts on the subject at our new Blogliography: eBay Drop-off Store Franchises
Yes, I opened a KIOSK store – which to me already seemed the best option, is cost structure, and I have been running it so I can gage possible incomes for would be owners. My own research and the study of how the KIOSK is functioning has helped my make significant changes to the original model. I not only read the reports about ISI, but I tested what I had before selling anything to franchisees. The drop off store model is full of holes and false promises. I have found that many of the claims and suggested business earnings stated by others haven’t actually been tested on the ground. I now, personally, know what will work and what just doesn’t.
It doesn’t mean the business is any easier, but it has caused me to adjust pricing and all associated fees to a level that fits with real earnings rather than, so called, projected earnings. There is a huge disparity between the two.
Honesty in this business is severely lacking, and the brochures are getting glossier and more forceful in the sell.
Robert