How eBay held key to £3.5m auto sales
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BUYING and selling goods on eBay is a popular way to earn extra cash in your spare time. But Brian Waring and his son Lee have turned it into a multi-million pound business.
Brian, 56, and Lee, 28, from Bolton, Lancashire, started by selling shop-soiled key rings on eBay ten years ago. As demand grew they branched out into car parts.
They forged relationships with well-known suppliers and, with no business debt to support, were able to source and sell high quality products at competitive prices. Their turnover began to soar.
‘We never envisaged it as anything more than a hobby,’ says Brian. ‘I worked full time in automotive retail, and Lee was studying.’
Three years ago, with their homes bursting with stock, they went full time with the business. The move paid off. Turnover at RTG Automotive is close to £3.5million, double the previous year, and they will move to bigger premises with their 12 staff in the autumn. They still trade via their eBay site but are launching a new division, RTG Motor Factors, distributing over the counter to local trade and retail customers.
Lee says: ‘Rather than just dealing in specialist parts, we offer ranges matching those of the largest car parts distributors in Europe.’
Sacrificing job security was risky, but Lee says it was clear that growth was being held back by their lack of time. To other would-be eBay entrepreneurs their advice is to reinvest as much of the profits as possible, especially early on, to maintain growth. Researching the market is crucial to finding what sell price is achievable and what level of sales to expect.
Brian adds: ‘Sell products you know most about and are comfortable with. There will be less chance of big hiccups.
‘Only explore new avenues after the business is on a sound financial footing, when you can afford to take risks.’