High-Growth Ecommerce Business in the Auto Headlights Niche: Two Websites, No Amazon Reliance
Website Closers presents an enormously profitable eCommerce company operating in the roaring field of Automotive Lights, and has quickly established itself as a top seller of Auto Headlight Products. Since inception, the company has illuminated the path to success and enjoyed remarkable year over year growth. This company has built up an impressive product line of 140 SKUs, with an average order value of $68. With their unique SKUs as a starting point, each one is cross compatible with more than 60,000+ listed products on their site, which in turn can then be placed in more than 80,000 vehicles.
OPERATIONS
The company ships products from its warehouse, and typically ships between 70 and 100 products per day. Their turnover rate is about 80% every 30 days, with new orders placed once a week and then twice a week during peak months. They also receive up to 20 customer service contacts per day.
Nearly all their products are purchased from suppliers in California, which are sourced from China and India. About 5% are imported directly from China.
MARKETING AND KEY METRICS
Sales are conducted entirely on the company’s two (2) Shopify websites; the brands quickly found a receptive audience for their products, particularly among men between the ages of 18 and 65. They are similarly well known in other key demographics such as car enthusiasts, night drivers, older drivers with vision concerns, long haul drivers, motorists in rural areas, and owners of classic cars. From the beginning, their competitive pricing has revved up sales to quickly reach a profitable and steady year-round level, although sales do pick up during the summer months.
Sales are primarily done in the U.S., Canada, and Mexico, and they have several top selling products. This business has the potential to expand sales by adding new auto categories to the product line and expanding onto popular eCommerce sites like Amazon, Walmart, and eBay. Social media and email marketing campaigns can also be further utilized to grow the customer base.
The company has a strong vendor mix and stocks 100% of their inventory. They have a massive email database of 80,000+ subscribers. LED products account for 55% of all sales, while HID products are an additional 40%. At least 9% of sales come from repeat customers, and those numbers are increasing.
The company’s products have found a receptive audience among men between the ages of 18 and 65. They are also popular among car enthusiasts, night drivers, older drivers with vision concerns, long haul drivers, motorists in rural areas, and owners of classic cars.
BUSINESS MODEL & RESOURCES NEEDED
The current owner now spends about 15 hours a week operating this business, with primary tasks that include managing customer service representatives and the company’s three suppliers. The company has one employee who handles order fulfillment.
THE INDUSTRY
The market for auto accessories of all kinds is booming, thanks to skyrocketing auto sales across North America. This company’s rapid success demonstrates how profitable it can be to market niche auto parts. This company was formed to market car headlight bulbs, batteries, products, and accessories. With offers including HID and LED lighting for cars, trucks, and motorcycles. As sales picked up, the brand continued to diversify its product line, offering fog lights, high beams, taillight bulbs, turn signal bulbs – literally any light source on a vehicle. The company also expanded to include other auto accessories such as battery jumpers and dash cams.
OPPORTUNITIES TO SCALE
Some scale opportunities for this business include expanding the product line to include new auto categories, expanding sales onto popular eCommerce sites such as Amazon, Walmart, and eBay, and continuing to expand social media and email marketing campaigns to reach a larger customer base.
Asking Price: $3,799,000
Gross Income: $2,710,000
Cash Flow: $836,522
Year Established: 2019
Employees: 2
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