WebsiteClosers® presents an eCommerce veteran of the OEM space that has spent 80 years catering to both the B2B and DTC markets. Originally founded in 1945 as a vacuum repair company, they made the transition to eCommerce sales 20 years ago, and, since then, has grown into a top provider of high-quality replacement parts.
They offer a broad assortment of over 29,000 SKUs, which include essential home components for home appliances, lawn and garden equipment, lubricants, filters, and specialty parts across multiple categories.
Many of the brand’s suppliers are small and struggle selling through Amazon, Walmart, and other online platforms. The company’s decades of experience selling online has made them a useful portal for these manufacturers, while making them a great acquisition for a buyer looking for a stronger presence in the OEM and distribution industries.
Business Broker Takeaways
1. Efficient Operations. The brand’s operations are managed with the help of a full management team, which includes a VP/General Manager, 12 full-time employees, 8 part-time staff, and one contractor. This 22-person team handles digital marketing, accounting, eCommerce operations, and other key tasks, making for turnkey operations for the company’s owner.
The brand has also developed internal product pricing and market scraping software, which optimizes their pricing and helps them maintain their competitive position in the market.
2. Effective Operations. The company operates out of a 35,000 square foot warehouse in Johnson Country, Kansas, where they process roughly 1,350 orders per day. The warehouse has the capacity to handle up to 8,000 orders per day if necessary and ships out about 350,000 orders annually.
They take a multi-channel approach to their sales channels, selling through Amazon, eBay, Walmart, Sears, and their own websites, allowing them to better target a larger number of customers, benefit from a diversified revenue stream, and enjoy consistent earnings growth year over year.
3. Diverse Product Range. The brand’s expansive number of products means that they aren’t dependent on any “hero” SKU. Additionally, as customers always need to repair broken household and commercial items, they enjoy consistent sales and a recession-resistant product roster. Within 2023 alone, the brand sold over 8,900 unique SKUs, reflecting the wide demand for their products.
Scale Opportunities
Current ownership has spent much of their time improving the company’s efficiency and the bottom line. A buyer interested in growing operations could convert this focus into strategic digital marketing efforts such as SEO, PPC, and social media, improving their brand visibility. Another way a buyer could improve their marketing strategy would be through email campaigns, influencer collaborations, and paid ads.
These tactics, alongside additional private label branding, could improve both their customer acquisition rate and brand loyalty. Increasing their private label offerings would likely quickly drop to the bottom line, as these products typically have a higher margin than their other OEM parts.
Outside of marketing, the new owner could expand the brand into international markets, or invest in increasing their presence on existing eCommerce platforms like Amazon and eBay. They could also develop exclusive partnerships with other brands to introduce new revenue streams.
Conclusion
This acquisition offers a fantastic opportunity for buyers looking for an efficient, highly scalable, and well-established eCommerce brand in the OEM market. Their operational infrastructure provides a strong foundation to expand from, and with improved marketing, they could rapidly improve brand visibility and build upon their already loyal customer base.
