15-Year International Ecommerce Retailer in Automotive Parts and Accessories

This eCommerce retailer has been in operation for over 15 years and has found a niche market for selling automotive parts and accessories online. The company has expanded its product line to include over 100,000 SKUs, ranging from bicycles to jewelry to pools and fire bowls. They have a highly efficient drop ship model for deliveries and source products directly from manufacturers. The company’s customer base is highly diverse and includes buyers ranging from ages 18 – 70. With solid scale opportunities including an aggressive social media campaign and the expansion of their product catalog, this company continues to grow its customer base and profits.

OPERATIONS

The company efficiently forwards orders to drop shippers, orders items to be shipped from their warehouse, researches new products, and handles customer service issues. They receive about five customer calls a day and 25 emails. The owner employs two part-time workers, a warehouse packer, and an accountant.

With a highly efficient drop ship model, 90% of the company’s orders are fulfilled through direct relationships with manufacturers. Their products are sourced directly from manufacturers, and the company keeps a sharp eye on new trends in the market to determine which new products to add to their catalog.

MARKETING AND KEY METRICS

The company has benefitted from a strong SEO program, regular email marketing, and sales on eCommerce platforms. With a database of over 65,000+ email addresses and numerous opportunities for expanding marketing efforts, including social media and PPC ads, this company has endless potential for customer base growth and sales conversion.

The company primarily sells products through its website and eBay, while consistently expanding sales across other eCommerce platforms such as idealo, Crowdfox, and Rakuten, among others. There are opportunities for growth through the expansion of their digital marketing efforts and the addition of other popular eCommerce sites such as Amazon and Walmart.

The company currently sees an average order value of $100, with 90% of shipments fulfilled via drop ship model and 10% of shipping from own stock. At least 15% of sales come from repeat customers, and they have a massive email database of 65,000+ email addresses. The bulk of their sales (70%) comes from European countries, while 30% comes from the United States, the UK, and Asia.

The company’s customer base is highly diverse, ranging from ages 18 – 70, and located across multiple continents, including Europe, the United States, and Asia. At least 15% of their sales come from repeat customers, showcasing high customer loyalty and satisfaction.

BUSINESS MODEL & RESOURCES NEEDED

The current owner now spends 30-40 hours per week running this business, with primary tasks that include forwarding orders to the drop shippers, ordering items to be shipped from their warehouse, researching new products, and handling customer service issues such as answering emails. The company now receives about 5 customer calls a day, and 25 emails. The owner employs two part-time workers, a warehouse packer and an accountant.

THE INDUSTRY

This company operates in the Automotive Parts & Accessories vertical. Its product offerings fall within the Automobile Parts & Accessories Stores NAICS code (44131), which generates annual revenue of $58.9 billion with a growth rate of 3.7%. The industry is highly fragmented, with the four largest companies accounting for less than 20% of the market.

OPPORTUNITIES TO SCALE

This company has strong scale opportunities, starting with an expansion of their digital marketing efforts to include a more aggressive social media campaign and a regular email marketing campaign that taps into the company’s massive email database of 65,000+ addresses. The company could also expand its product catalog to include an unlimited number of new items, since they have numerous drop ship suppliers with strong-selling products that could be added to their marketplace offerings. With revenues already high, these moves could easily triple profits in the short run.

Asking Price: $499,500
Gross Income: $1,774,920
Cash Flow: $182,218
Year Established: 2004
Employees: 3

• About
• Latest Posts

Amanda Stanley

Amanda has been a professional writer since 2010. She writes during the day and reads by night. She has accumulated knowledge by scouring the internet and reading informative books. Concurrently, she developed a passion for educating people through her blogs and web tutorials. She is an earnest believer that knowledge is power.

Latest posts by Amanda Stanley (see all)

• Two Highly Profitable Sports & Fitness Ecommerce Brands For Sale - July 8, 2023
• Branded Ecommerce Company for Baking Goods - July 8, 2023
• Trendy Baby Fashion Retailer Ready to Launch - July 8, 2023