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HobbyKing takes control: Meeting the demands of a global RC craze

Founded in 2005, PayPal has been with HobbyKing since the start. HobbyKing designs, manufactures and sells RC planes, cars, batteries and accessories globally. While their headquarters and warehouse are based in Hong Kong, they have expanded in recent years to the US, EU and Australia.

You might have seen them in your parks or on your social media feeds; radio-controlled planes, drones, cars, boats, tanks, and even bulldozers.

In recent years, the radio-controlled (RC) industry has grown exponentially thanks to huge leaps in technology and the cost of parts and accessories becoming more affordable.

HobbyKing Director Sam Zhang says, "Our mission is to make the RC hobby more accessible for everyone to enjoy."

Success Metrics

  • 70% of HobbyKing's customers transact with PayPal1
  • PayPal's solutions increased operational efficiency1

The opportunity

Seamless global expansion with secure payments

HobbyKing saw an opportunity for a one-stop platform that offered quality RC products at an accessible price. They quickly found eager customers from beginners to professionals all over the world.

HobbyKing's Product Developer, Stuart Warne, says while international growth came quickly, it wasn't without its challenges.

"High shipping costs, delivery delays, intense market competition, and changing global situations," to name a few. That's why, he says, "Knowing PayPal has the payment security concerns under control gives us great peace of mind."

The solution

A payments platform built to grow with their business

Now a truly international ecommerce business, PayPal has been an essential part of HobbyKing's expansion, with over 70% of their customers using PayPal as their preferred payment method. Stuart says, "With so many countries and currencies involved, it's critical that we have a robust, secure payment system that handles international commerce."

PayPal gives customers the PayPal Checkout experience, and offers protection—a vital consideration, Stuart says, for those new to the hobby, or unfamiliar with the HobbyKing brand. "Seeing the PayPal logo gives customers confidence in HobbyKing."

The impact

Effortless integration for smooth business

On the supplier side, PayPal Invoicing and Payouts have simplified their day-to-day financial admin. HobbyKing director, Sam Zhang, tells us PayPal's end-to-end payment processing solution, "streamlines our payment process, improves operational efficiency, and helps our business better manage payment-related tasks."

Also, the Dispute Management function helps to resolve issues promptly and helps to avoid costly chargebacks, helping to improve customer satisfaction.

Stuart tells us, "Despite the number of features, we found integration simple. Even me, not an IT guy, can easily manage."

They pride themselves on a customer-friendly user experience, where the checkout process can be the difference between a sale and an abandoned cart. Stuart says it's not just the customers who benefit; PayPal's Seller Protection on eligible purchases¹, diverse currency support, and fraud detection are among the top reasons he recommends PayPal to business owners.

"Honestly, use PayPal," he tells us. "It saves us a lot of time."

Download the full case study here.

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