Childhood friends Liu Yu and Li Zhi run a dedicated Parts & Accessories (P&A) business, Chengdu Genbang Ltd, on eBay. Operating out of Chengdu, a major Southwestern Chinese city known for its mahjong (a popular Chinese game), hotpot and slow pace of life, the company has seen sales revenue grow month-on-month by 100 percent to USD $200,000 in the two years since its birth.
After finishing his studies in Germany, Liu Yu returned to his hometown, Chengdu, to take over the family business – an established automobile 4S dealership store. The ambitious young man soon discovered the limits of managing a traditional 4S store and decided to embrace ecommerce by opening an eBay storefront.
“eBay was my first choice of platform, as I had used it when studying in Germany,” said Liu. “I also learned that eBay was promoting the P&A category, which closely aligned with the scope of my business.”
The duo’s new undertaking immediately took off. They credit eBay’s account managers for the smooth transition – eBay provided big data guidance and tools that allowed them to capture the specific demands on P&A products from overseas markets.
In a bid to sustain the momentum of growth, they’ve developed three new business strategies:
- Enrich their product lines with a monthly launch, while removing less popular products based on eBay’s quarterly sales updates.
- Expand to destinations with high-growth potential, including Brazil, Argentina and Russia.
- Cater to the demands of established customers by making better use of overseas warehouses.
“With our low labor cost and high profit margins, we’re convinced that our eBay-based business is steering us towards a promising future,” said Liu.