NuMarkets – Profile
HQ: Etowah, Tennessee
Management: Russell Grove is CEO – background is in GE-style logistics, a good fit for this type of operation. Board of Directors features James H. Amos, Jr., chairman emeritus of Mail Boxes Etc. These guys also have a Core Values page – which makes us feel warm indside, in an evangelical Tennessee sort of way.
Investors: Southern Appalachian Fund and private investors including James Amos.
Business Model: NuMarkets helps you sell your junk on eBay. Go to one of the franchise locations and they’ll do the rest. Company charges a flat 33% with no additional eBay or Paypal fees after the sale. Claims a technology/process advantage over the competition – sells your stuff faster, gets you a good price, and efficiently remits funds. Recent deal with USPS means you can send items in from home, without having to go to a franchise location.
Competitors: Quikdrop, iSold-it, PostNet International, AuctionDrop
Dirt: NuMarkets is coming on fast and strong, but we’re not convinced the franchising model is the way to go. We’re not saying the model won’t work – we just wonder how profitable it will be, as the company has plans for 2,000 outlets. That said, we like the recent hedge NuMarkets made when it signed on with the USPS to create another option for consumers. We also like the fact that these guys are from Tennessee, far from the din of Silicon Valley and close to another famous logistics company, FedEx.