Auto Performance Accessories Retailer with 11 Years in Business and 14K SKUs – SBA Pre-Qualified
Target is an 11 year old eCommerce Retailer in the Automotive Performance Accessories Sector, catering to the most popular platforms in the US Domestic Market sports car pantheon. 11 years of steady sales growth, clean books, and a low overhead, totally drop-ship business model shipping over 14,000 SKUs at a $511 average ticket all from the comfort of the owner’s laptop at home or on the go.
OPERATIONS
Like most eCommerce retailers in the auto performance space, drop-ship is the name of the game. The suppliers for this business have provided total access to literally any type of performance part for literally any make, model or year vehicle – a highly valuable relationship that isn’t easy to build these days; suppliers nowadays tend to focus on the best performing retailers when drop-shipping, so new entrants into this space would find it harder to get approved. And a great value proposition for any drop ship business is that there’s no expensive inventory to manage, warehouse or ship. Usually, eCommerce retailers have to deal with the ebbs and flows of cash flow due to inventory stocking, but cash flow is not a constraint or issue with this business model as there’s no inventory to stock – ever – allowing ownership the freedom to focus more on growth, rather than how they are going to pay for the next truckload of parts.
Like most eCommerce retailers in the auto performance space, drop-ship is the name of the game. The suppliers for this business have provided total access to literally any type of performance part for literally any make, model or year vehicle – a highly valuable relationship that isn’t easy to build these days.
MARKETING AND KEY METRICS
Scaled to date almost entirely on organic marketing with nearly zero paid advertising invested at any point, this business is currently realizing one of its best growth years to date thanks to an already low-seasonality space and a trusted storefront name.
This eCommerce retailer has the opportunity to expand its customer base and offerings by selling on Amazon, tapping into a larger market and potentially increasing sales volume.
This Internet Retailer sees over 50,000 visitors to its site monthly with a valuable 20% repeat customer base, and an excellent customer LTV for any sector thanks to the ‘its never finished’ nature of the Project Car customer base, a seemingly well-to-do demographic.
The customer base of this eCommerce retailer primarily consists of car enthusiasts and owners of high-volume platforms, such as Challenger, Mustang, Camaro, and Corvette. The target demographic is well-to-do individuals who invest in project cars and seek performance upgrades and accessories.
BUSINESS MODEL & RESOURCES NEEDED
This business is currently operated by a single employee.
THE INDUSTRY
The automotive performance accessory market is a rapidly expanding industry with a growing customer demand for aftermarket parts and accessories. With the increasing popularity of eCommerce, niche retailers like this one have thrived in providing a wide range of performance parts for specific car models. Examples of other businesses in this industry include online retailers specializing in performance exhaust systems, suspension upgrades, engine tuning, and car body kits.
OPPORTUNITIES TO SCALE
This eCommerce retailer has the potential for scaling opportunities by expanding its product selection to include performance parts for a wider range of car models, reaching a broader customer base and increasing overall sales volume. Furthermore, exploring paid advertising and marketing strategies can further enhance growth and visibility.
Asking Price: $625,000
Gross Income: $1,616,225
Cash Flow: $193,405
Year Established: 1996
Employees: 1
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