eBay drop shop brand Auctioning4u has bought the assets of iSold It UK, a rival chain that went into administration last month.
The move will see iSold It UK’s shops moving over to the Auctioning4u network, boosting the company’s plan to increase the number of its drop off locations around the UK.
iSold It’s shop-owners had feared for their future after Online Revolution, the company which owns the brand’s UK franchise rights, was placed in administration last month.
But Trevor Ginn, head of consulting at Auctioning4u, said iSold It’s business model was behind its demise, rather than the drop shop concept itself:
”iSold It was built around a decentralised drop shop model where the item processing was performed in the individual franchisee shops.
“This model does not provide the volumes and economies of scale required to make money in what is a high volume, low margin business.”
Trevor claimed Auctioning4u is experiencing strong growth at the moment, with revenues increasing by 15% per month.
As well as individual sellers, the company focuses on retailers and manufacturers that want to sell their surplus stock through eBay – an area where it seems more sales could be generated by brands.
We found recently that some big name brands, such as Orange and B&Q, had been having issues with their eBay operations.