Selling through eBay Inc (NASDAQ:EBAY) is increasingly becoming a successful business model for businesses in Australia with a growing number of firms in the country selling millions in merchandise through the site every year.
The fact was shown by The Australian in a recent report which revealed that 1,667 businesses in the country have 1 million Australian dollars or more in sales per year.
According to The Australian, eBay Inc (NASDAQ:EBAY), which started operating in the country 15 years ago, is now home to more businesses selling brand new items. In fact, brand new items make up 85% of all merchandise sold in the country today, the publication said.
One retailer named Scott Gladstone was quoted in the report saying that after years of building his business selling gardening and home gym equipment on eBay Inc (NASDAQ:EBAY), his company now has million in sales through the site every year.
“It took us three years to make our first million dollars of sales, and now we sell about $8 million a year — there’s real businesses operating on eBay these days, [it’s] not just people selling out of their garage,” Gladstone is quoted as saying by The Australian.
According to Gladstone, the benefit of selling through eBay Inc (NASDAQ:EBAY) is that business can be reached by 8 million customers after setting up shop. According to the publication, Gladstone compares setting up a store on the website to opening a store in a mall often visited by many people.
“You can set up your own store and be in front of 8 million people straight away — that’s not possible with your own website,” Gladstone told the publication.
The businessman added that being based in Australia is advantageous to them even though there are business from outside the country also selling through websites. He said that people prefer to buy locally and that his business just has to compete on price, service and customer service.
Hedge funds with a stake in eBay Inc (NASDAQ:EBAY) includes Carl Icahn’s Icahn Capital Lp which reported about 30.8 million shares in the internet retail website by the end of the second quarter of 2014.