Would you risk £60k to a new eBay trader?

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£60,000 is the investment that a company calling themselves bayagent have received in funding from a group of Venture Capitalists called Nstar. That’s a fair amount to invest in a company setting up as eBay trading assistants in a market where other trading assistants are failing. The one point in their favour is that they’re not looking for consumers to drop off items but intend to appeal to businesses with excess stock to dispose of. They aim to grow to a £14m turnover within two years – with fees of 33% that values bayagents cut at over £9m. Currently they state they’ve sold £48k having started trading in November.

It will be interesting to see how they fare, they have plenty of business experience – the founder set up studentmobiles.com which was sold to the Carphone Warehouse. What may be lacking however is eBay experience, although they state they’ve had an eBay account since 2003 they’ve chosen a user id masquerading as a URL. If they can’t follow basic eBay rules it doesn’t inspire confidence in their eBay expertise.

4 Responses

  1. Who is going to open a book on how long they last 😉

    Knowing the costs of running a warehouse, that £60K isn’t going to last that long, and to expect an eBay turnover of £14m within two years is a joke, they will be very lucky if they acheive £1.40m

    *wonders what their next ID will be as baytrader is taken*

  2. I’d love to know where they lifted their T’s and C’s from

    8.7. Governing Law. California law will govern this Agreement, except for the body of law relating to conflicts of law. Subject to the Arbitration Section, venue for any legal action will be the state courts of San Mateo County, California, or the federal courts of the Northern District of California.
    https://www.bayagent.co.uk/terms.htm

    Not bad for a company just outside Durham in the UK!

  3. Great idea selling things from companies and such like. But more and more companies are catching onto the ebay markets themselves already especially with a lot of them with inhouse expertise that can use the net to make listings etc

  4. I dont understand why, these companys think they need all this investment, and overheads, we offer the same service,
    on a much smaller scale, and do it from home
    http://www.auctionit4u.co.uk we launched last mounth, and already, we are making profit. IF, and its a big if, we continue to build up our trade, and business, then i would consider, some small storage space, and expansion, but hey we started with 5K, and 3K is our cash float, surely this is the way to start any business, My mentors are Fred Done, and That guy from the accident group, both companys started from home, and then built it up,

    Some people with money are crazy!
    if you are based in or around Manchester, and want real customer based auctioning for you service, , with fast 2-3 weeks turnaround, and low comission (just 12 % on anything above £1000) then check us out:-
    http://www.auctionit4u.co.uk

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