Scaling Up a Long-Running Replacement Auto Parts Brand on Amazon FBA
This established eCommerce company specializes in the production and distribution of aftermarket replacement auto parts for passenger vehicles and outboard engines. With a unique and efficient workflow, the company quickly brings new replacement parts to market. It sells its products in the United States, Canada, and Mexico through various Amazon Channels and its own Shopify storefronts. The company has negotiated excellent payment terms with sourcing manufacturers and maintains low product concentration levels. With a focus on brand awareness and quality, the business has achieved a strong market presence and is poised for further growth and expansion.
OPERATIONS
The company uses a proprietary workflow to identify, source, and bring new replacement parts to market quickly and efficiently. It tracks the progress of each product from identification to selling potential. The business operates primarily on the Amazon platform, leveraging its strong seller reviews and utilizing in-house software for inventory management, reporting, and trend monitoring. With a stock and ship platform for global fulfillment, the company ensures consistent quality across all markets.
The company purchases 75% of its stock from an Asian sourcing company, which offers favorable payment terms such as NET 30 and NET 40. For larger orders, the company can negotiate even longer payment terms. The remaining 25% of products are purchased directly from a factory. This allows the business to manage inventory effectively and maintain positive cash flow.
MARKETING AND KEY METRICS
The company has established a well-known brand in the aftermarket space and has received multiple best seller badges. It sells primarily on the Amazon platform and has an excellent reputation with customers. With a low SKU concentration, the business is not heavily reliant on any one product. Its strong brand presence and quality offerings have helped it gain an enviable market share.
The company primarily sells its products through Amazon FBA and its own Shopify storefronts. It has experienced consistent sales growth due to its high-quality offerings, strong brand presence, and effective marketing strategies. With the potential to expand its sales channels and explore new markets, the business has significant opportunities for further growth.
Key metrics for this business include revenue, profit margin, customer acquisition cost, customer lifetime value, and return on investment. By tracking these metrics, the company can evaluate its financial performance, assess marketing strategies, and identify areas for improvement and growth.
The company’s customer base consists of individuals and businesses in the United States, Canada, and Mexico who are in need of aftermarket replacement auto parts for their vehicles. These customers appreciate the high quality and competitive pricing of the company’s products. The business also attracts repeat customers due to its excellent customer service and reliable fulfillment process.
BUSINESS MODEL & RESOURCES NEEDED
The company currently has 4 employees. These employees handle various aspects of the business, including procurement, inventory management, marketing, customer service, and fulfillment. The team is experienced and knowledgeable in the aftermarket replacement auto parts industry.
THE INDUSTRY
The aftermarket replacement auto parts industry is a thriving sector, driven by the demand for affordable and high-quality parts for passenger vehicles and outboard engines. Customers value the convenience of online platforms like Amazon for purchasing these parts. The industry is highly competitive, with numerous brand options and sellers. Examples of companies in this industry include AutoZone, Advance Auto Parts, and RockAuto.
OPPORTUNITIES TO SCALE
This business has various opportunities for scaling and expanding its operations. It can launch new product lines or expand its current product offerings to cater to a wider customer base. Additionally, the company can explore partnerships with other retailers or distributors to increase its market reach. With its successful payment terms and infrastructure in place, the business is well-positioned to capitalize on these scale opportunities.
Asking Price: $12,050,000
Gross Income: $13,170,037
Cash Flow: $2,628,874
Year Established: 2009
Employees: 4
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