Marat Denenberg
November 19th, 2008Narro Corp. (eBay User ID: narro) Hackensack, New Jersey
Projected 2006 Sales: $1.8 million to $2.3 million
Description: New and refurbished disk drives and other computer hardware
An Education Outside the Classroom:
Marat Denenberg was introduced to eBay when he was a student at Rutgers University, where he eventually obtained bachelor’s degrees in computer science and economics. His roommate encouraged him to check out the auction site as a great place to find merchandise at low prices. “I used to avoid eBay because I thought it was only a place to buy and sell collectibles,” says Denenberg, who soon learned that selling on eBay was a perfect way to put his double major into practice. “I discovered I could buy refurbished DVD drives from factories. I bought them in bulk, attached front plastic covers I had purchased separately, and sold them on eBay for a profit. Because the drives were now attractive, people were interested and bought them. [Each] cover only cost 15 cents, but it virtually doubled or tripled the value of the drive.
Secrets to Success: Like many full-time eBay entrepreneurs, Denenberg uses a third-party auction service provider-in this case, a company called ChannelAdvisor-to build volume. He has also used his computer science background to develop customized software that streamlines shipping and addressing. These days, he completes 50 to 80 transactions per day, and averages $4,000 in daily sales. Having negotiated volume discounts with UPS, he also attracts a good deal of business by offering free shipping to customers who purchase directly through his website.
Planning Ahead: Even though he owns a successful eBay business and is leasing a 4,400-square-foot warehouse, Denenberg is not one to rest on his laurels. “I’m pushing the business forward on a daily basis,” he says. “To a large extent, there’s no finish line.”