eBay Drop Off Stores: Cashing in on the Latest Trend

Authors

  • Sanela Porca University of South Carolina Aiken
  • Julie Carleton University of South Carolina Aiken
  • Marsha Shelburn University of South Carolina Aiken

Keywords:

Trading Assistant Program, consignment, Entrepreneurship, case study

Abstract

In 1995, eBay was created over Labor Day weekend by Pierre Omidyar to help people sell and buy items over the internet. Over the coming years, millions of eBay members would buy and sell unused and unwanted items from their homes and budding entrepreneurs would use eBay to launch their web businesses. Ten years later, eBay has grown to an online auction site with 55 million items available worldwide at any given time and 157 million members registered worldwide. In early 2002, eBay established a "Trading Assistant Program". This created a formal directory on eBay for experienced eBay sellers to market their services to others interested in selling their items. The idea behind the Trading Assistant Program is that most people have unwanted items or unneeded items, but do not have the expertise or the time to sell them on eBay. In 2003, survey data suggested that 18% of the items sold on eBay are sold on consignment by Trading Assistants.

This case traces the startup of an eBay drop off site and the problems facing the entrepreneurs who started the site. It may be used in an Entrepreneurship or marketing class.

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Published

2021-03-09

Issue

Section

Cases