Case Study – 24×7 Mercantile House Pvt. Ltd
The emerging e-commerce industry allows online buyers to compare various products along with the prices, eliminating the travel time. Cross-border e-commerce is not only beneficial for the buyers, but the sellers are reaping good fruit out of it as well.
The sellers can directly sell their product to their valuable customers via various marketplaces like Amazon, eBay, Wadi, Flipkart and lots more. This, in-turn, cuts down the middle-men.
However, there are few challenges in relation to Cross Border Trade (CBT), ranging from logistics to payment. Although, there are feasible solutions to these challenges that have further pumped up online buying. It all comes down to ensuring a good customer experience.
Not a lot of entrepreneurs can transform their hobby into a profession. One such lucky individual is Naveen Pamnani, Director, 24×7 Mercantile House Private Limited, whose hobby of restoring vintage bikes tuned into a burgeoning business. Having started as a Marketing Executive firm WWI, he went on to become the Director of Sales and Marketing at Cordial Merchandising India (CMI). He traveled all over India training more than 3000 marketing executives.
Pamnani’s interest in restoring vintage vehicles began in his early teenage years when he was in class IX. He restored an old Vespa, and ever since then, he developed a knack of restoring vintage vehicles. By the time he was in college, he had restored a vintage Fiat! Realizing that the internet could be his gateway to reach the global buyers in search of vintage parts, he decided to clout his interest and knowledge in the field into a viable business proposition.
However, the idea of selling spare parts for vintage automobiles seemed a little too absurd to the business veterans, he also contacted several other manufacturers to help him develop his business plan but no one seemed interested. Yet, he was fully convinced that his idea would work and so he went on to list out his products on eBay and the results were overwhelming.
While it was eBay that gave him a platform to sell his products, Naveen mentioned that it was PayPal which actually gave him brand recognition and trust he gained from his valued customers. He found out that the prospective customers had trusted his brand only because of PayPal, which offered a safe and secure payment channel.
The thought of exploring CBT started in 2005 when he travelled to the UK and other European markets at length for promoting Indian handicrafts to the Global Buyers, this was possible only through his experience with Rural Bazaar.
While touring the European markets, and interacting with international buyers he realized that the customers preferred shopping in their comfort and convenience of their homes. In 2009, he finally quit his job to start his own e-commerce venture.
Naveen’s mission was to deliver high-quality vintage spare parts to car and bike enthusiasts at all around the globe combined with top-notch service. Apart from this, his mission also included delivering these spare parts at reasonable prices.
After his initial success with eBay, he went on to launch 4 other websites in tandem: Bulletwala.com (US), ClassicSpares.com (Australia), RoyalSpares.co.uk (UK) and VintageAutoSpares.com (North America). After noticing that his customers preferred a well-recognised trusted payment gateway, he integrated PayPal to all of his websites. This integration resulted in extreme cost-cutting by eliminating the middle men and saving the marketing costs.
As of today, his company is an ISO certified 9001:2008 ecommerce organization that sells spare parts for vintage cars and bikes. From a one-man show, the company currently has different departments dealing with different activities and procedures each headed by a specialist.
He mainly gives credit to PayPal, which provided him the trust and reputation. In the first month itself, he achieved sales of over US $10,000. As of today, the sales are over US $90,000 in a quarter, registering a growth of 300%. His company ships vintage spare parts for automobiles to more than 10,000 customers across US, UK, Australia, Europe, Uruguay, and Israel.
Experience with PayPal
While sharing his experience with PayPal, he mentioned that “A 70 year old man called from Florida for enquiring about vintage spare parts for his bike and was over the phone listing out parts he required to restore the bike. When the sales executive told him that he will send an email with the list of the auto parts, he smiled and told that he does not know how to use a computer. The sales executive took the order and informed him that the parts would be shipped within 3 working days, but he will have to pay the invoice before the parts were shipped. The gentleman said, “Send me the PayPal invoice and I’ll pay immediately.” This shows that a person who doesn’t know how to use a computer still trust PayPal.
He wishes to share, inspire, and educate other entrepreneurs and export houses who want to enter the ecommerce world.
Just like Naveen Pamnani, Eunimart has enabled a lot of Merchants live their dream of selling Internationally and enjoy the benefits of the International Market.