Yardsellr, the Startup for Social Commerce to Soon Shut Down
Created by the former executives at eBay,CEO Daniel Leffel who was the former manager, Jed Clevenger who was the Vice president for marketting and Rachel Makool who ran the community team, this startup's main aspiration was to become Facebook's eBay. Having raised an amount of $5million in 2010 from Accel, the company had recently showing steady progress.
With the platform for social commerce soon growing and emerging as a community of 5 million users, 175K of these users was active on this website every month. Over 6K new items have been listed for sale by local sellers every day.
However, with things recently having gone bad for the company, the startup has recently planned to get it shut down and that too within the next two months. Tough competition and the fading of the social commerce management business model are some of the factors that are responsible here.
"A few months ago, we began to talk to a few other companies who wanted to borrow our playbook. They wanted to turbo-charge their ecommerce business using the Yardsellr strategies for blending games and social with buying and selling. As we looked at the growth potential and profitability of that business, it became clear that it was a very attractive option.
But we knew we couldn?t focus on that business ? selling software and services to ecommerce companies large or small ? and on our existing Yardsellr business Today we are turning our attention 100% to the ecommerce services business and we will be shutting down Yardsellr.", as announced by the team and reported by Techcrunch.com.
The company now plans to transition itself into a new business namely CompondM, which will be launching within the next few weeks. For the startup, this experience has been quite a disappointing one.
"I got out of YS months ago, when they raised their fees and started making the sellers pay them. Their customer service sucks, they never responded to any emails and the photons were just crap. It just sucks that a lot of people will be out of money because of this, but at least now they can't do it to anyone else in the future", says one of the sellers in the company, as reported by Techcrunch.com.
"I agree that things should not have been implied, costs should not have jumped, especially when the possibility of shut down was so high. I'm very glad I didn't drop any more [money] into buying photons and boosts. This has been pretty much a bummer for me. I have several platforms that I sell on and [Yardsellr] and Etsy have been my best, however, I have 73 sales on [Yardsellr] in less than one year and it is my #1 selling platform. Now I have to figure out where to go next. That's the part I am struggling with.", says another.
According to Yardseller, the company is doing its best to save its sellers. Some of the sellers had in fact even offered to get the company's platform purchased and sold in order to prevent it from having to get shut down.