Posted on: Wednesday, September 1, 2004
SMALL BUSINESS
Firm tries to make eBay sales easier
By Catherine E. Toth
Advertiser Staff Writer
Little did Tiffany Tanaka know that when she logged onto eBay five years ago to get rid of the stuff cluttering her bedroom, she would end up launching a new business.
What started out of a bedroom in Manoa has become a burgeoning business for these two. A year ago, they were selling about 900 items a month; now they average near 3,000, charging $5 per item plus 20 to 30 percent of the sale price.
And given the price of some of the items they sell, it's clear they are doing quiet well. A guitar once owned by Sheryl Crow commanded $1,400. A 1942 penny that contained an error sold for $700.
"We like those," Tanaka said with a smile. "Those are nice."
The company is now staffed with a handful of other Punahou graduates, all around 24 years old, with diverse backgrounds. Tanaka majored in fashion design at the University of San Francisco; Sword is studying graphic design. There's a law student, accountant and marketing major also on the payroll.
This diversity, coupled with a year's worth of experience in Hawai'i, is what they hope will set them apart from a major new competitor. AuctionDrop Inc., a San Francisco-based eBay drop-off service, opened in nine UPS Store locations in Hawai'i last week. People can drop off their items valued higher than $75 and weighing less than 25 pounds at any participating UPS Store, which will package and ship them to AuctionDrop. The items are then stored and insured until the sale on eBay is complete.
Unlike the tiny Wesell-things4u, AuctionDrop has the only eBay drop-off service in all 50 states. So far it boasts more than 3,400 locations and 24,000 items listed on eBay.
Its success a 99.9 percent positive feedback rating could be traced to a central processing area, where all the back-end work takes place. Items are photographed, written about, tested, researched and posted from a warehouse in San Carlos, Calif. "This allows us to have a consistent level of quality," said spokeswoman Andrea Roesch.
AuctionDrop also employs experts in various categories to help with testing, research and writing.
"A person who writes listing for computer laptops may not be the right person to write about a 95-year-old Waterford crystal candleholder," Roesch said.
Both AuctionDrop and Wesellthings4u take a commission for items sold. Wesellthings4u charges a per-item fee of $5. ($2.50 for first-time sellers.) AuctionDrop doesn't charge a fee but takes a higher commission based on the final selling price.
Sellers don't seem to mind the cost of paying someone else to do all the tedious, time-consuming work of posting an item online, Tanaka said.
"All you have to do is drop it off," Tanaka said. "Clean or dirty, we'll do all the work."
Tanaka said she's not worried about the added competition, saying what sets her company apart is a more personalized approach to customer service.
UPS Store staff will only pack and ship items to AuctionDrop, where they will be evaluated, photographed and posted online. Items are then listed within two weeks. At Wesell-things4u, items can be evaluated and priced on the spot. The company also offers free pick-ups on Fridays.
"People want to see someone, talk to someone," Tanaka said. "We make it easy for customers."
Roesch said the world of eBay auctioning is large enough to accommodate both businesses.
"The fact of the matter is, the market is enormous," Roesch said. "Every person in the United States potentially has something in their attic, in their garage, something they don't use or don't want. ... There might be value in that. ... So many people can do very well at very different levels of business, from someone operating out of his bedroom to running a small business, there's so many opportunities. That's the beauty of eBay."
Reach Catherine E. Toth at 535-8103 or ctoth@honoluluadvertiser.com.