People with stuff to sell have a wealth of ecommerce sites at their disposal, from Amazon to Etsy – but longest running, and most popular, is eBay.
In its earliest guise it was a place where people could sell their unwanted second-hand goods – such as collectors’ items and bric-a-brac – in their spare time. Today, some are running multimillion pound eBay businesses, tapping into eBay’s global economy worth $84bn and its 169 million-strong customer base.
Eleven years ago, automotive retail worker Brian Waring and his son Lee had begun selling a few shop-soiled key rings on eBay in their spare time. Surprised by a high demand, they expanded into selling car parts, which led to the launch of their business, RTG Automotive.
“We never thought it would be more than a hobby, but as it took off we were reinvesting any profits made into the business and turnover began to snowball,” says Brian.
Sustained growth meant both of their homes were soon jammed to the rafters with stock. Four years later, the Lancashire-based pair took the decision to relocate to small commercial premises, give up their regular jobs and work full-time on the business.
Last November they moved into new 35,000 sq ft premises in Leyland, with enough capacity to accommodate ongoing expansion and a new business division, RTG Motor Factors.
“It enables trade and retail customers in the area to buy over the counter, and it is a collection point for our online sales,” says Lee. “We have built relationships with some of the biggest car parts brands in the world, and we now offer their products through our outlets.”
Today the company employs 22 people and is set to turn over £7m this year. They continue to sell via eBay, and have adapted to changes in the online sales landscape; 25% of its sales are to countries outside the UK, up from 5% in the early days.
“Our business has grown organically, without any external investment or debt funding, and financed solely by its profits,” adds Brian. “This has made the company financially very stable and given us the freedom to make our own decisions.”
For some business owners, like puppet maker Westley Wood who runs Animation Toolkit, selling very niche products in a niche marketplace has been the key to their success.
Wood started out making puppets for animated films like Corpse Bride before becoming an animation producer with Cosgrove Hall, a Manchester-based production company. He continued to make puppets and their armatures, or skeletons, for puppet makers to build characters on as a sideline, and sold them on eBay.
He says: “People Google us or our products and we are ranked on the first page, often at the top. We’ve also been linked to some very high profile customers and animation productions, which in turn directs more traffic through our website. Success is not all about advertising, but a combination of social media, blogging and media opportunities which has solidified our rankings.”
Ten years after launch, the self-funded business is still relatively small, with three permanent employees and access to a talent pool of flexible and freelance professionals when they are working on bigger projects that require a larger team. A recently secured global licence deal will boost annual company turnover from its current £350,000 to over £1m.
If there is one single factor that can determine the success or failure of an eBay business, it is customer service. Dissatisfied customers will waste no time leaving negative seller feedback – the first thing that potential new customers are likely to see.
“If you look after your customers, you have a customer for life,” says Clare Haines, founder of Lingerie Outlet Store.
Haines started selling lingerie on eBay in 2008, and a year later moved to her first premises. She says: “I chose lingerie because it is light, and therefore cheap to post and easy to store because the items are small. My light bulb moment happened when I sold my first bra – a “36D red triumph light desire” – within 15 minutes of the eBay listing going live.
“We now have a strong customer service team who are all qualified bra fitters, and where possible they will always opt for picking up the phone to resolve any queries.”
Lingerie Outlet Store now employs 31 people and has seen turnover climb from £51,000 in 2009 to an anticipated £8m this year.
The eBay marketplace has changed dramatically in the last five years, increasingly becoming a destination to shop for new products, not just unwanted second-hand goods. With this, expectations of eBay customers have changed, and it is seen as an alternative to Amazon. But it continues to allow home business owners to grow successful companies and build strong brands.
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