Topic: Should I Open?

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Posted at April 1, 2006, 5:14 pm:

I am thinking about opening my own ebay drop off store located on the south side of Chicago. I have been reading around this forum about the huge amount of store failures.

I have no intention of going into a franchise nor getting rich from this store. I am a college student and just trying to make enough to live off of while still in college. If I could bring in a couple of hundred a week in my pocket I would be happy. Plus this could look good on my resume.

So about the business. It would be a partnership. My business partner's Grandparents own the building that we would be renting. The rent would be around 1000 a month for an ok size store. Our only costs would be the rent, the desks and computers, the dsl line, the phone lines, and a fax line, as well as utilities of course. And a staff that would be needed once the school year began again.

My business partner and I are both accounting majors and are hoping to be able to do most of the paper work ourselves. My biggest worry is how to account for the taxes, in and out of state. The last thing I want to do is cheat the IRS.

I am hoping to charge a 20-25% commision but also make the cosigner responsible for the listing fees. I feel this would help to personalize the listing on behalf of the cosigner. The cosigner would be able to decide on how many pictures they want to list as well as the bold and highligted features since he or she is paying for the auction.

Another concern with the auction portion of the business is to attract buyers. I will not inflate the shipping costs like much of the ebay stores currently do. Would anyone buy from me if I am just starting out and have a low feedback rating? How could I be most fair to the seller as well as the buyer and still turn a profit?

Is it possible to sell used cars on ebay? Or is a lisense required. Alot of people tend to just trade their cars in to a dealership for pennies compared to what they could have recieved. I was thinking of tryin to sell the used cars as an additional selling option and only charge a 1-5% commission that is negotiable.

I have read the horror stories as well as the cinderella stories regarding these ebay stores. My question is should I try and open this ebay store? Would it be possible to turn profit? Is this worth the risk? and finally, What additional factors should I take into account?

Original of the message was taken from http://www.auctionbytes.com/forum/phpBB/

Replies:

I just think the margins would be too thin; you might get all these $1...

To ensure the highest return per item, major effort into each listing ...

I like the idea and I can definitely see how this would look good on a...

I think you are greatly underestimated the amount of time and effort i...

I realize how hard this will be to make any money.

I am definately leaning towards this approach as it seems like the mos...

Wishing you the best of luck! I do hope you will share your experien...


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