A Booming Ecommerce Retailer of Automotive Modification Accessories with Healthy Margins & 100% Drop Shipping
This eCommerce business sells high-quality aftermarket performance parts for sports car modification in the United States and Europe. They use a drop-ship model that allows them to carry zero inventory and require no employees. They have secured drop-ship direct from dozens of prominent brand names, boosting their margin. The ever-increasing ubiquity of eCommerce as the default channel for nearly any purchase has been beneficial to niche and mainstream customers alike. This business is in a fantastic position to rapidly expand its customer base and SKU assortment and is sure to do well on the market.
OPERATIONS
The business uses a highly effective drop ship model with 15 to 30-day vendor terms, requiring no employees and having limited working capital needs. They sell mainly on Amazon US but have opened Amazon storefronts in European countries. The European stores have already grown to account for over 20% of total sales in only two months in business.
The business primarily operates on a drop ship model, securing direct distribution agreements with brands such as Holley, Edelbrock, Eibach, H&R, Precision Turbo, Vogtland, and Borla Performance.
MARKETING AND KEY METRICS
This business mainly sells on Amazon, and their excellent customer satisfaction rating on the platform has attracted many customers. Due to the nature of the industry, the business benefits from a healthy and seasonless customer base.
The business is an established seller on Amazon US and has recently expanded to Amazon storefronts in the United Kingdom, France, Spain, Germany, and Italy. They have seen a considerable increase of over 20% of total sales since opening these storefronts two months ago. This expansion provides significant opportunities for sales channel growth.
The business has a gross income of $1,403,163, cash flow of $279,620, and was established in 2017.
The business has a healthy and seasonless customer base due to the niche industry, with most customers buying their products repeatedly. The business caters mainly to sports car modification enthusiasts in the United States and Europe.
BUSINESS MODEL & RESOURCES NEEDED
This business operates on a highly agile drop-ship model and requires no employees.
THE INDUSTRY
The automotive performance accessory market is niche but continually expanding due to the growth of eCommerce. Manufacturers and customers benefit from the ever-increasing symbiotic relationship as demand drives the supply for new and more diverse options. Examples of other businesses in this industry include JEGS Automotive, Summit Racing Equipment, and AutoAnything.
OPPORTUNITIES TO SCALE
The business has opportunities for considerable scale due to its agile and lightweight drop-ship model, allowing for instant SKU expansion and customer base expansion. They have the potential to scale the business further by widening their product offerings and expanding their manufacturing partnerships.
Asking Price: $1,200,000
Gross Income: $1,403,163
Cash Flow: $279,620
Year Established: 2017
Employees: 1
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