The concept of eBay drop-off and sales has been a hot topic for the self-storage industry this year, and many facility operators are reaping the benefits. However, the vast majority dont know what the service is or how it fits into their business.

eBay drop-offs are locations where customers can bring unwanted items to have them sold on eBay. The facility simplifies the process by handling all of the work in exchange for a percentage of the selling price, typically around 30 percent to 35 percent.

The great thing about eBay drop-off is everyone is a potential customerits not just tenants or the technologically challenged who need this service. Everybody has something they could sell on eBay. Consider the results of the 2004 ACNielsen survey, which indicated the average American household has approximately $2,200 worth of unused goods. Thats a lot of rent checks never seeing the bank! But most people dont have the time to list on eBay and, even if they did, they dont want to deal with the hassle of setting up an eBay account and managing their auctions.

eBay drop-off can be marketed by storage operators in many ways. Each targets different customers and has the potential to bring in substantial revenue. Here are just a few ways eBay can be used in self-storage:

Sell Items for Existing Tenants and Walk-In Customers

Most tenants have items in their units or homes that could be sold on eBay. Many storage customers are in the process of moving, packing things they havent used in a long time. They can now sell these items through the facility to help pay for their move or even their rent.

But dont worry that youll lose customers if you offer them a means of selling unwanted goods rather than storing them. After all, you wont want to sell just anything a tenant has to offer. For example, you dont want to sell items worth less then $50, and probably not furniture and appliances because these theyre too expensive to ship. So were really only talking about a handful of items in each unit that will be worth selling.

Storage facilities in high-traffic areas are in a particularly good situation to attract new customers by advertising the eBay drop-off service. Youd be amazed at how many people will want to use it.

Reduce Late-Paying Tenants and Lower Delinquencies

All storage facilities have some late-paying or delinquent tenants. Historically, the only option for operators to handle these accounts and recoup their losses was to auction off the units in default. This is an inefficient process that rarely recovers the operators deficit. Considering the time and costs involved, the operator may even incur even more expenses than he had before the process started.

By adding eBay services, storage operators can offer late payers and delinquent tenants an easy way out, preventing units from ever going to auction. The facility manager simply contacts all late tenants and offers to sell some of their items on eBay to help pay their rent. These items arent limited to what the tenants are storing in their unitsthey can also bring in items from home.

Weve saved several units from going delinquent this year by offering eBay drop-off to our late customers, says Eddie Rickenback, manager of Storage Depot in Indianapolis. Weve imbedded this service into our operation, and now every late tenant gets a phone call or letter letting him know about our eBay option.

The program provides a very customer-friendly way of resolving bad debt. Its not abrasive and, in most cases, tenants come out of the process feeling good about the facility, sometimes even making money. This can easily translate into referrals, resulting in more business.

Fundraising

Some facility operators are getting creative with their eBay drop-off services, setting up fundraisers for local charities. They simply contact organizations such as schools and churches and offer their facility as a drop-off center for an eBay auction drive. The facility then lists donated items on eBay, keeping a percentage of the sales price and donating the rest to the charity. This is a great way to get a storage facilitys name out in the community while doing some good and making money.

Business-to-Business Sales

Storage operators are also starting to recognize the potential revenue eBay drop-off can provide by marketing to business tenants and the local chamber of commerce. Almost every business has overstock, closeouts, unused office supplies and equipment. Most of the time, businesses dont know what to do with these items, which end up sitting around, depreciating and taking up valuable space.

Brian Riva, owner of Stor-It-All in Litchfield, Conn., has been successful at capturing business-to-business revenue. His facility is now selling everything from used auto parts for a racing school to electronics for a local wholesaler.

Weve found that by marketing to businesses, we can obtain a steady stream of inventory to sell on eBay and deal with fewer customers to get these items, he says. Business-to-business sales outgrow an ancillary service and become their own operation.

eBay drop-off is extremely versatile. Storage operators can choose to target only existing customers or go after the services full potential. They need only target the markets that meet their needs and the facilitys capabilities. 

Aaron Mueller is vice president of operations for Tampa, Fla.-based Add It LLC, which provides a turnkey solution for self-storage facilities to add eBay drop-off as an ancillary service. For more information, call 866.881.3229; visit www.additonline.com.