In-House Auto Organizing Accessories Brand Boasts 32% Net Margins and Massive YOY Growth
This eCommerce brand specializes in selling in-house designed, proprietary auto organizing accessories for consoles and glove boxes. With a focus on high-quality and functional products, the brand has earned rave reviews from customers in the auto parts and accessories industry. The company has achieved impressive 38% year-over-year growth and maintains net profit margins of 32%. With a variety of products available for popular vehicle makes and models, the brand has established itself as a leader in the niche field of center console and glove box organizers.
OPERATIONS
The company primarily sells its products through Amazon, where it boasts a 4.8 Seller Rating and 76 active SKUs. The products are private label branded and created from proprietary molds or CNC machined. Each product is designed to be an exact fit for a specific make and model vehicle, and the brand offers products for top auto manufacturers such as Toyota, Chevy, Ford, and Honda. The company employs a mix of paid ads on Amazon, organic SEO efforts, social media engagement, and participation in online automotive forums to drive sales and increase brand awareness.
The company’s products are designed and manufactured in Denver, Colorado, using proprietary molds and specifications. The brand owns 48 molds that produce multiple proprietary SKUs. The company’s suppliers stock inventory on all SKUs, and Fulfillment by Amazon is used to handle product shipments and storage. This streamlined supply chain ensures efficient product delivery and allows the company to maintain up to 90 days of inventory in Amazon’s fulfillment centers.
MARKETING AND KEY METRICS
The company utilizes a combination of paid ads on Amazon, organic SEO efforts, social media engagement, and participation in online automotive forums to market its products. With a strong 4.8 Seller Rating on Amazon and positive customer feedback, the brand has established a solid reputation in the industry. To further promote growth, the company can explore increasing its PCC ad spend, expanding its affiliate program, and implementing influencer marketing campaigns.
The brand primarily sells its products through Amazon, which represents 89% of its sales. Other sales channels include Amazon Canada and eBay. To drive growth, the company can focus on expanding its sales tactics by increasing advertising efforts on Facebook and Instagram, optimizing its Amazon PPC program, and exploring opportunities to sell internationally through Amazon’s platforms in Europe and other regions. The company can also consider listing its products on other online marketplaces, such as Walmart, and expanding into aftermarket automotive distribution channels.
The key metrics that the company focuses on include net profit margins of 32%, year-over-year growth of 38%, and a 4.8 Seller Rating on Amazon. These metrics demonstrate the company’s success in generating profit, expanding its customer base, and maintaining a strong reputation on a leading online marketplace. Additionally, the company tracks average order value, customer reviews and ratings, and sales conversion rates to measure the effectiveness of its marketing strategies and customer satisfaction.
The brand has a growing and loyal customer base in the auto parts and accessories market. With positive customer reviews and ratings, the brand has established a reputation for quality and functionality. The target customers include car owners who want to maximize the convenience and organization of their vehicles. The company’s products cater to a variety of vehicle makes and models, ensuring a wide customer base that spans different automotive brands.
BUSINESS MODEL & RESOURCES NEEDED
The company is currently operated by the owner, who spends 30-35 hours per week managing various aspects of the business. The responsibilities include monitoring Amazon Seller Central, inventory management, bookkeeping, supply management, new product research, and design development. The owner contracts with a service called AMZProfessional for additional support in monitoring inventory reconciliation, account health, and negative seller feedback removal. The company does not have any employees at the moment, but the workload can be minimized with the addition of contractors or staff members.
THE INDUSTRY
The eCommerce brand operates in the auto parts and accessories industry, which is valued at $510 billion in the U.S. alone. The industry encompasses various products and services related to automobiles, including aftermarket parts, accessories, and maintenance supplies. This industry is highly competitive and experiences steady growth as the demand for automotive products and services continues to rise. Examples of companies in the industry include AutoZone, O’Reilly Auto Parts, and Advance Auto Parts.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this eCommerce brand. One potential opportunity is to expand the product line to include additional popular vehicle makes and models, allowing the brand to reach a wider customer base. Another opportunity is to increase advertising efforts, such as implementing advanced digital marketing techniques and launching influencer campaigns. Additionally, the brand can explore international expansion by utilizing Amazon’s platforms in Europe, Mexico, and other countries. Finally, the company can consider partnering with other online marketplaces and automotive distribution channels to further increase sales.
Asking Price: $2,300,000
Gross Income: $1,462,807
Cash Flow: $461,137
Year Established: 2012
Employees: 1
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