AuctionDrop – Profile
HQ: San Carlos, CA
Founded: March 2003
Management: CEO is Randy Adams. He’s started and sold many companies, but probably had his biggest payday when he helped Yahoo secure financing from Sequoia back in the DAY. Rest of the team looks seasoned. However, could be a credibility issue with this management-posing-as-rock n’roll-band idea… Example below:
Investors: Raised $17MM from Draper Fisher, Mobius Venture Capital, and individuals.
Business Model: eBay for lazy people. As the name suggests, drop off your garage sale crap at one of AuctionDrop’s locations and the company will handle the rest. If AuctionDrop can’t sell it, you get your crap back in the mail at no additional charge. If AuctionDrop does sell it, the company takes a healthy cut. There are limitations on the size and type of products that are accepted – the company also rejects items it thinks will make less than $75 at auction.
Competitors: Quikdrop, NuMarkets, iSold-it, PostNet International
Dirt: June deal with UPS retail stores was a game-changer for the company, expanding reach from 5 California cities to 3,400 UPS locations. With this deal, AuctionDrop asserts itself as the early frontrunner – and also found a way to avoid building more of its own stores. We also like the fact that eBay is endorsing AuctionDrop’s business, saying nice things in press releases, etc.