from Maximilian Bochenek
If you search the Internet for power tools, you're bound to come across the name Dinotech. This online company - located in Göttingen, Germany - impresses its customers with in-depth knowledge and expertise. Continue reading this success story to learn how Dinotech quickly dealt with a market fluctuation and transformed it into a profitable business.
Student dormitory to e-commerce business
Back in 2007, brothers Rauf and Ramig Aliyev sat together in their dorm room and founded the business "Fachhandel für Elektrowerkzeuge Dinotech". But back then, their company had a completely different product line. "In the early days, we cleaned and restored old digital cameras. The cameras were used, but they were still quite valuable. We would put these good, old treasures – these so-called dinos – up for sale on eBay and make a nice profit," said CEO Rauf Aliyev as he explained his company's name. "Even back then, it was really important for us to have detailed item descriptions and good product photos. And we've stayed true to this philosophy ever since."
The business model with digital cameras went well for about two years. Then came a turning point in the history of modern communications technology: smartphones. As modern smartphones developed, an increasing number of people gained access to small, yet powerful cameras. Dinotech saw its customer base shrink away. "Suddenly the market for cameras was flooded and we had to react quickly. So we started looking for a new product line, which would be a bit more stable than digital cameras were. We analysed the market and decided that power tools would be a good option. Since we had already gained experience marketing our old product line, we were able to apply this experience to a new industry. And we were quite successful."
Innovative company structure
The new product line was good for the company, and Dinotech grew steadily thanks to smart planning and helpful software by plentymarkets. It's been nearly 12 years since Rauf and Ramig Aliyev founded their company. Now they employ 60 talented people and they rely on a hybrid company structure. "We've got our own logistics department, made up of packers, coordinators and return managers. We've also got our own department for media content, customer service, key account management, marketing and purchasing. And we have a team in our brick and mortar store. We practice hybrid company management, meaning we want all our employees to have the skills they need to do all the different jobs. We want our content writers, for example, to know how to provide good customer service or help out in the warehouse if needed. This has been extremely helpful for our company's growth."
Good content is more important than sales figures
Dinotech strives to provide the best content in their field. They believe sales figures go hand in hand with high-quality content. As an independent power tool seller, Dinotech understands how important it is to stand out from the large DIY chain stores. That's why they were eager to adopt new types of media and modern technology, such as 360 degree videos. Dinotech has its very own content department, which produces high-quality texts, images and videos. Their goal is to display items with such great detail that online shoppers feel like they've walked into a brick and mortar store. When creating content, Dinotech puts itself in their customers' shoes. "We don't rely on the manufacturer's images. We take almost every picture that we put online. We want our photos to make customers feel like they're holding the product in their hand. It's important to provide our customers with the best possible content so they know exactly what they're buying", said Rauf Aliyev.
plentymarkets paves the way for omni-channel sales
Since Dinotech started out restoring and selling digital cameras on eBay, they already had a bit of experience with online marketplaces. But when they switched to a new product line, the Aliyev brothers decided it was time to expand. They began selling on other marketplaces and decided to use plentymarkets as an ERP. 10 years later, they're still convinced this was the right decision. Thanks to its numerous marketplaces, plentymarkets helps Dinotech sell their tools on eBay, Amazon, 21 other relevant marketplaces and in their very own, free online store. In 2018, plentyPOS made it possible for Dinotech to open up a brick and mortar store in Göttingen and turn their sales strategy into an omni-channel sales strategy.
Rauf Aliyev always strives to sell his items on large platforms. "Marketplaces are busy hubs of activity. Customers know they can find anything they're looking for on a marketplace. So why shouldn't I sell my products there too? Another big advantage is marketing. Platforms invest in their own marketing campaigns, which means they also invest in me. And since we profit from them, we're happy to participate in their promotional offers. They're essentially doing the work for us."
The right software for a growing company
plentymarkets gives Dinotech much more than just access to new marketplaces. Thanks to its cloud technology, the software scales to meet Dinotech's needs. And thanks to its numerous interfaces to other service providers, Dinotech was able to customise the software. "One thing I love about plentymarkets is all of the different payment options. It may sound trivial, but it's something that plenty does really well. Regardless whether my customer prefers PayPal, Amazon Payment, or any other type of payment, I can handle it. That's something a lot of other sellers struggle with", said Rauf Aliyev.
Since plentymarkets is browser-based, it's compatible with the company's hybrid structure. Dinotech employees all use the software for their own jobs, and they can log into their own accounts from any computer.
According to its own estimate, Dinotech "relies on plentymarkets 99.99% of the time" because the software gives them everything they need to manage their business professionally and grow steadily. In the 10 years since they began using plentymarkets, Dinotech has personally seen how well it works. "It's really important for us to have one piece of software that we can trust, rather needing to use several different interfaces. We want to focus on making sales and not on managing an IT infrastructure. plentymarkets helps us do just that." Rauf Aliyev is very happy with his decision to use plentymarkets. "I've even recommended plentymarkets to sellers in other countries. They've also been successful using the software. There are so many advantages to using plentymarkets. I can't think of any other system that's as effective in multi-channel and omni-channel commerce. plentymarkets sellers have an enormous advantage because they can sell on many more channels than just eBay and Amazon. Our own sales figures have shown us how important this is."
Ideal conditions for international sales
In the future, Dinotech plans to expand their business into other countries. They will rely on plentymarkets plugins to help their business react to conditions on local markets and adapt to them as needed. Whether it means offering foreign payment and shipping methods or finding international tax advisers.
We wish Dinotech the best of luck and we're honoured to continue assisting their company in the future!