Aftermarket Parts & Accessories Brand for German Automobiles Sees 20% Repeat Order Rate & YOY Growth
This eCommerce brand specializes in providing aftermarket parts and accessories for popular German-made vehicles. With a wide selection of products and a reputation for quality and excellent customer service, the company has experienced strong sales growth. They offer over 3,280 SKUs on their WooCommerce site and have access to over 100,000 products at wholesale prices.
OPERATIONS
The company operates using a drop-shipping model, sourcing products directly from manufacturers. They maintain no inventory and rely on their suppliers to handle shipping. The company has seen a rise in repeat customers and has increased their average order value over the past 6 months. They are also expanding their sales from direct-to-consumer to wholesale accounts.
The company has dropshipping arrangements with over 100 brands, allowing them to offer a wide variety of products without maintaining inventory. They source products directly from manufacturers, with one main supplier providing up to 30% of their brands. The rest of the products come from individual manufacturers.
MARKETING AND KEY METRICS
The company utilizes various marketing strategies including PPC ads on Google, email marketing, social media marketing, and SEO optimization. They have a strong presence on Instagram and YouTube, with a growing number of followers and viewers. The company is also considering launching an affiliates campaign to further promote their products.
While the company’s sales have primarily been direct-to-consumer, they are also expanding their sales to wholesale accounts. They have gained traction among automotive shops and other businesses, with wholesale customers generating up to $20,000 per month in additional revenue. This shift in sales channels presents opportunities for further growth and revenue increase.
Key metrics for this eCommerce brand include an average order value of $1,093, a repeat order rate of 20%, and strong year-over-year growth. These metrics demonstrate the company’s ability to attract and retain customers and generate revenue.
The company’s customer base consists of owners of German-made vehicles, particularly Mercedes-Benz, Audi, Porsche, and BMW. They serve customers of all ages across the U.S. and internationally. Approximately 20% of customers are repeat buyers who return to purchase additional items after their first order.
BUSINESS MODEL & RESOURCES NEEDED
The company has a small team consisting of a full-time salesperson and an administrative aide who works in a contract position. The current owner spends approximately 10 hours per week on tasks such as accounting, ad management, fraud prevention, and supporting the team.
THE INDUSTRY
The aftermarket auto accessories industry is worth $406.73 billion and is expected to reach $647.29 billion by 2030. Consumers’ desire for high-performance, comfort, and convenience in their vehicles drives the sales of aftermarket parts. The company specializes in parts for German-made vehicles, including popular brands like Mercedes-Benz, Audi, Porsche, and BMW. These vehicles have a strong market presence, and the company’s reputation for quality products positions them for significant growth.
OPPORTUNITIES TO SCALE
With a strong customer base and a growing wholesale business, there are several opportunities for this eCommerce brand to scale. They can expand their marketing efforts, launch an affiliates campaign, and explore new sales channels. Additionally, the company can consider expanding their product offerings and targeting new customer segments to further increase their revenue.
Asking Price: $750,000
Gross Income: $1,991,990
Cash Flow: $230,099
Year Established: 2021
Employees: 2
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