Two truckloads of goods, or 1,500 parcels is the daily quantity of packaged machines, tools, and professional equipment that OnlineMashini.bg's team send by courier from the company's leased warehouse to its customers. Now BG Mashini, the company managing the online store, is building its own warehouse with an investment of 15 million levs (7.5 million euro), Svilen Kostov, the majority owner, tells the Capital Weekly.
Since it was founded 10 years ago, OnlineMashini.bg has sold over 3.5 million items, with the business growing by over 30% annually. In 2023 the company reported more than 38 million levs in revenue and expects 30% growth in 2024. The company employs more than 80 people.
Three times larger
The new warehouse will be built on a 1.2-hectare plot near Sofia's ring road that is owned by the company. It will span 7,200 sq. m of built-up area and will be equipped with shelving systems covering 10,000 sq. m. The project also includes the construction of offices, a showroom and a service center.
"In addition to the necessary software solutions for collecting, sorting and packaging shipments, the new warehouse will be equipped with more than 500 m of conveyor systems to help with the fast collection and sorting of products," explains Kalin Kostov, operations manager at the company.
"The project will give us three times the storage space of the facility we currently lease and will process 5,000 parcels a day. The increased capacity will allow OnlineMashini.bg to deliver an even larger percentage of orders within 24 hours. Currently this percentage is over 50%. Mechanization and software will largely solve the labor shortage problem," says Svilen Kostov. The warehouse is planned to open by the end of 2025.
Choosing your business
Svilen Kostov studied economics in Germany, which largely shaped his choice of business. "In Germany I saw how eBay works and this changed my vision for the future. The platform opened my eyes to online commerce and I decided this was my path for development," he says.
He returned to Bulgaria and worked for a company selling second-hand machines. After gaining enough experience he started his own business with a friend, who later withdrew from the venture. Thus in 2012 the OnlineMashini.bg platform was born.
At the beginning Svilen Kostov worked alone. After several months of long hours, he hired one employee, then a second one.
Growing your business
Over time different departments were formed within the company and the number of employees grew. The orders from the platform also increased with a 60% jump during the COVID-19 pandemic. In 2022 OnlineMashini.bg leased a 4,000 sq. m warehouse with 3,800 pallet spaces.
Currently the online store offers over 95,000 items - from screwdrivers to tractor mowers - spreading across 28 main product categories and covering professional equipment, gardening, workshop and garage tools.
"The online store and the entire ERP and CRM systems are proprietary developments, which provide exceptional flexibility and freedom for growth," says Yoan Arnaudov, IT manager.
The company is an official dealer of Bosch, Makita, DeWalt, Milwaukee, Husqvarna, Stihl, Karcher, Gardena, Honda and others. Additionally, OnlineMashini.bg imports and directly represents over 15 brands on the Bulgarian market, some of them exclusively, such as the Czech brand Hecht and the Dutch brand HBM.
In the past year, the online store had over 47 million user sessions. The platform serves both individuals and businesses (about 20%) with diverse profiles.
"For several years now OnlineMashini.bg has had a showroom in Sofia's Vrazhdebna district, where customers can see and purchase over 1,000 items available on the website, as well as collect online orders," says Atanas Petrov, marketing and sales manager.
"Our next goal is for OnlineMashini.bg to enter the market of neighboring countries. The project will be managed by a team in Bulgaria, working in the respective language. We will need software and contracts with local courier companies. The investment could reach up to 1 million levs," says Svilen Kostov.
Two truckloads of goods, or 1,500 parcels is the daily quantity of packaged machines, tools, and professional equipment that OnlineMashini.bg's team send by courier from the company's leased warehouse to its customers. Now BG Mashini, the company managing the online store, is building its own warehouse with an investment of 15 million levs (7.5 million euro), Svilen Kostov, the majority owner, tells the Capital Weekly.
Since it was founded 10 years ago, OnlineMashini.bg has sold over 3.5 million items, with the business growing by over 30% annually. In 2023 the company reported more than 38 million levs in revenue and expects 30% growth in 2024. The company employs more than 80 people.
