Brick and mortar e-commerce has stumbled over from the USA and landed in Ireland. “iSoldit� seems to be a fairly unique idea, its essentially an eBay power seller who sell item on your behalf. iSoldIt offers a walk in centre or shop where you can bring in items that you would like to sell on ebay. They provide a professional photographer to take pictures of your items. All of the shipping, handling, support and payment is managed by iSold it.
For the privilege of this service they change you a 30% fee based on the overall selling price, they also seems to skim money off the shipping and handling fees. To quote the website:
In addition to receiving a commission from the seller (your customer), you will also collect a handling charge that is paid by the buyer. You also get to keep the difference between postage and shipping “rack rates” charged to the buyer and your actual reduced iSold It reduced postage and shipping corporate rate.
According to an article on ENN “Galway eBay store opens its doors�. I went over to the corporate website for iSold It to find that they have no Galway stores listed on the “store locator�. This could just be a sloppy mistake made late on a Friday evening after banging out as many press releases as possible, or maybe its an indication of lack of planning and coordination by the company as a whole.
The one aspect that ISold It didnt describe in they franchise pitch is how they manage dispute resolutions, shipping delays and lost goods. What if the item is damaged before shipping, who picks up the costs then? What about fraudulent or stolen goods? The list of questions goes on. Maybe I’m just nitpicking but it seems like a very unstable investment over all.
I like the idea, to think that someone would pay €25,000 for a franchise with no brand in the Irish market is just insane.
It is believed the typical cost of operating a franchise in Ireland ranges between EUR90,000 and EUR150,000, depending on factors such as rent, labour, size of the store etc.
In my opinion anyone could go out tomorrow and duplicate this business model in a matter of hours. This seems to be a service that you would expect from your local Internet café, its not rocket science.
If you enjoyed this post, make sure you subscribe to my RSS feed!