eBay Stores Are a Bust!

May 182008

Internet Business Guide Review

The business strategy of eBay Stores has been a bust. Here is a visual comparison of the eBay concept and the traditional “consignment store”.

The average ratio of Net Income to Gross Sales for an eBay store is 19%. That compares to an average of 46% for an Online Internet Business Opportunity; and an estimated average for the typical unaffiliated consignment store of 38%.

The failed concept of eBay was they could have a high visibility location, with upgraded store fixtures, and provide franchisees a competitive advantage over standalone consignment stores.

At the end of March there were 68 eBay stores for sale. As of mid-May all but one remain available for sale. The chart below describes 29 typical eBay stores currently for sale.

AVAILABLE LISTINGS	ASKING PRICE	GROSS SALES	CASH FLOW	A/C	CF % Sls
eBay Store	$70,000	$164,000	$2,460	28.5	1.50%
eBay Store	$30,000	$184,089	$5,593	5.4	3.04%
eBay Store	$1,950,000	$6,064,578	$492,524	4.0	8.12%
eBay Store	$80,000	$329,481	$30,465	2.6	9.25%
eBay Store	$60,000	$125,355	$12,798	4.7	10.21%
eBay Store	$260,000	$907,000	$100,000	2.6	11.03%
eBay Store	$250,000	$560,000	$63,200	4.0	11.29%
II Sold It Store	$685,000	$1,232,383	$141,174	4.9	11.46%
eBay Store	$48,000	$280,000	$33,000	1.5	11.79%
Packing/Shipping Store	$134,000	$235,698	$33,005	4.1	14.00%
II Sold It Store	$30,000	$250,000	$46,000	0.7	18.40%
eBay Store	$275,000	$1,345,000	$136,400	2.0	10.14%
eBay Store (+ Ship)	$175,000	$425,000	$85,000	2.1	20.00%
eBay Store (+ Ship)	$120,000	$204,485	$46,139	2.6	22.56%
Ebay Store (?add back)	$135,000	$223,500	$72,425	1.9	32.40%
eBay Store (same above)	$175,000	$223,500	$72,425	2.4	32.40%
eBay Store	$95,000	$79,676	$29,435	3.2	36.94%
eBay Store	$69,000	$340,000	$136,400	0.5	40.12%
eBay Store	$499,000	$317,647	$163,556	3.1	51.49%

The Make Money Online Rank for “eBay Consignment Store” is “1″; the lowest rating I have, to date, given an Internet Business Opportunity.

Overview

eBay Consignment Store Internet Business Guide Listing #7284
Status:	Off Market
Business Type:	NAICS 464111
Business Category:	Etailer
Business Name:	NDA
Business Web Site:	NDA
Asking Price:	$45,900
Down Payment:	$45,900
Gross Sales:	$1,049,320
Cash Flow (or SDE):	$40,708
Asking Price As Multiple of Cash Flow	1.1
Year Established:	2005
FF&E:	$15,000
Inventory:	$ N/A
Employees:	6
Absentee Owner:	No

Have you identified the category of Internet Business acquisition that you desire, yet have not located it? Are you uncertain of the Internet Business that is your ideal acquisition candidate? Then you should consider an Acquisition Search!

Business Summary

Right click on this exceptional opportunity to purchase three contiguous e-bay franchises in Southern Los Angeles County. Two of the locations are already profitable and well established; each with a great ‘bricks and mortar’

storefront presence that promotes the business through high visibility and the third license is for an equally strong market area. Annualized on line sales are approximately $1,000,000 with an outstanding customer feedback score of 7,000+ 99%, making this franchise one of the leaders in this industry.
Because the startup and development costs are now in the ground, a new owner can focus on growing cash flow and market share. The current owner has been transferred overseas and will leave behind a fully trained staff as well as a non-eBay income stream that yields excellent profits beyond the franchise operation

The business model is simple to operate and in addition to training from the current owner, the franchiser and software vendor will also provide in-depth training with the purchase and license transfer.

Facilities: 11,000 sq.ft.

Financing: Not Available

Training: Seller will provide training for 2 weeks at 20 hours/week.

Listed By: Owner

Quantcast Data: (for category comparison, not the website for sale)

Traffic Overview

US Demographics

Affinities & Audience

To obtain Business Profiles please complete your Confidentiality Agreement; if it is not already on file with the Internet Business Guide.

For information on this Internet Business Opportunity, or more than 400 additional Internet Business Opportunities, contact Internet Business Broker Don Janke. With over 20 years Online/Internet business experience I can guide you to your ideal acquisition to make money online!

Related Listings:

eBay Consignment Store

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