The eCommerce Store – Year 2003
Having done well on eBay back in the day there were so many loopholes and it was so easy to make money due to the lack of people selling eBay was quality. Consumers were lapping up the fact they thought it was a carboot sale and enjoyed cheap deals.
I started selling all sorts to get a feel for it. Auctions mostly not Buy It Now.
I was looking for more opportunities and a friend of mine contacted me with his idea for a store that sold memory for cameras – SD Cards, Flash memory.
He needed big cash to get the prices down on the distributors this is where another work colleague came in who happened to have the cash that was needed. Basically this lead to around a £15k purchase of Lexar Memory Cards.
Putting them on eBay and they flew because it was so simple we were just the best prices around not difficult business sense here. Buy in large quantity then sell low = easy profits.
Of course, there was just no competition around then.
We were doing around £6 grand a week on eBay alone.
My friend was working but at the same time this was taking off quick – he learned to use a website building tool I think it was called http://www.ebuttonz.com/
At the time this was a great push button solution to get a store up within a day. Downside was using Worldpay as our Merchant who at the time used to take a cut of the transaction and then would hold your funds for 4-6 weeks!!
We couldn’t operate like this as we needed the turnover of cash – any new business knows cashflow is king.
Note: unless this has changed I would advise against using them.
At one point they almost stopped us trading as we couldn’t purchase new stock – luckily we found a new solution which was Sagepay formely Protx. These guys were great we could bank our cash quickly and turn it over faster.
To be continued…