14-Year Automotive Parts Brand with Private Label Suspension and Ecommerce & Wholesale Sales Channels
The Custom Aftermarket Automotive Products Brand has been operating for 14 years. They specialize in offering top-quality suspension, lighting, and auto accessories at affordable prices. The company is dedicated to providing exceptional customer service and prides itself on its dealer, distributor, and manufacturing capabilities. Currently, they primarily focus on eCommerce and wholesale sales channels.
OPERATIONS
The company offers a wide range of products in the aftermarket automotive industry. They import and brand their own air suspension components, which are highly popular among customers. The distribution process involves working with multiple manufacturers to source system parts. The business has a strong DTC eCommerce component via its website and potential to expand on secondary retail platforms like eBay and Amazon.
The company imports and brands their own air suspension components, which are top-selling products. They also source system parts from multiple manufacturers. Additionally, the business has access to thousands of more products that can be added to the online inventory. The supply and logistics process is well-established, making it easy for a new owner to continue operations smoothly.
MARKETING AND KEY METRICS
The business benefits from rising consumer awareness of auto parts and the convenience of purchasing them online. Increasing vehicle numbers, road accidents, and the growing automotive aftermarket contribute to the market’s growth. With the shift towards online platforms, the business can tap into the global eCommerce automotive aftermarket market. The products have year-round appeal and experience increased sales prior to tax season and summer car shows.
The business currently focuses on eCommerce and wholesale sales channels. They have a strong DTC eCommerce component through their website, and a fraction of D2C sales come from platforms like eBay. An Amazon account is also available but not in use. Secondary retail platforms offer significant growth potential, allowing the business to reach millions of users and expand market share.
The business attracts an abundance of unique visitors to its websites every month. They have a wide customer base, including retired farmers, lifted pre-runner two-wheel-drive customers, and import tuner enthusiasts. The lack of seasonality in sales and the potential to expand into manufacturing or new product lines present key growth opportunities. The company’s strong online presence and SEO content contribute to customer attraction.
The company has a varied customer base, including retired farmers restoring work vehicles, lifted pre-runner two-wheel-drive customers, and import tuner enthusiasts. By offering a range of products in the aftermarket automotive industry, the business caters to a diverse set of customers. The expansion into manufacturing or new product lines can attract additional customer segments.
BUSINESS MODEL & RESOURCES NEEDED
The company is currently run by two owners who handle various aspects of the business, including web development, customer support, sales, and accounting. They are the only employees and possess the necessary skills to operate the business. As the business grows, there may be a need to hire additional employees to support expanded operations.
THE INDUSTRY
The aftermarket automotive industry is experiencing significant growth due to increasing consumer awareness of auto parts and the convenience of purchasing them online. The market benefits from the rising number of vehicles, road accidents, and the growing automotive aftermarket. The COVID-19 pandemic further accelerated the shift towards online platforms, driving the global eCommerce automotive aftermarket market. Examples of companies in this industry include AutoZone, O’Reilly Auto Parts, and Summit Racing Equipment.
OPPORTUNITIES TO SCALE
The business has opportunities for scale by expanding into the manufacturing quadrant with a new product line or various new product lines while continuing to dropship supplier’s parts. With a wide customer base and a strong online presence, the company can leverage its brand reputation to launch new products successfully. Expanding into secondary retail platforms can also drive growth and increase market reach.
Asking Price: $1,250,000
Gross Income: $1,308,454
Cash Flow: $316,767
Year Established: 2008
Employees: 2
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