collage of auto parts

Explosive Ecommerce Brand Offering Aftermarket Auto Parts – 10 Best Seller Badges and Strong Growth

This business is a seasoned eCommerce company in the Aftermarket Replacement Auto Parts Sector. It has been in growth mode since its inception 8 years ago. The company produces a fully branded line of replacement auto parts for passenger vehicles and outboard engines. It uses a unique, proprietary workflow to quickly identify, source, and bring new replacement parts to market.

OPERATIONS

The company utilizes a data mining process to track the progress of each product from identification to selling potential. It operates primarily on the Amazon platform and has negotiated favorable payment terms with sourcing manufacturers. The company has low product concentration levels and uses proprietary software for inventory management, reporting, and trend monitoring.

The company purchases 75% of its stock from an Asian sourcing company that provides NET 30 payment terms. For larger orders, it can negotiate even more flexible payment terms. The remaining 25% of products are purchased directly from a factory with NET 40 payment terms. The company operates on a stock and ship platform for global fulfillment.

MARKETING AND KEY METRICS

The company has built a strong brand presence and focuses on brand awareness and quality. It has received 10-20 Best Seller Badges at any given time and operates with amazing seller reviews on Amazon. The company has a well-known brand in the aftermarket space.

The company sells its products in the United States, Canada, and Mexico through various Amazon channels and its own Shopify storefronts. With the dramatic shift to eCommerce from the COVID-19 pandemic, the company is experiencing strong growth in the online sales channel.

Key metrics for this business include revenue growth, customer acquisition cost, customer lifetime value, return on investment, and inventory turnover ratio.

The customer base for this business includes individual vehicle owners, automotive enthusiasts, and businesses involved in the repair and maintenance of vehicles. The company has a wide reach through its presence on Amazon and Shopify, attracting customers from the United States, Canada, and Mexico.

BUSINESS MODEL & RESOURCES NEEDED

The company has 4 employees who manage various aspects of the business, including inventory management, customer service, and marketing.

THE INDUSTRY

The aftermarket replacement auto parts industry is a lucrative sector that caters to the demand for replacement parts for passenger vehicles and outboard engines. It is a highly competitive industry with strong demand, driven by the need for maintenance and repairs. Examples of other players in this industry include AutoZone, Advance Auto Parts, and O’Reilly Auto Parts.

OPPORTUNITIES TO SCALE

The company has opportunities for scale in both retail and wholesale. It can expand its product offerings, improve brand visibility, and explore partnerships with other retailers. The growth potential is significant, given the increasing demand for auto parts in the eCommerce space.

Asking Price: $12,050,000
Gross Income: $14,174,733
Cash Flow: $2,524,155
Year Established: 2011
Employees: 4

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