The target and its associated brand is a rare opportunity to acquire a seasoned eCommerce Company in the Aftermarket Replacement Auto Parts Sector. This business has been in growth mode since its inception 8 years ago. The company produces a fully branded line of replacement auto parts for passenger vehicles as well as outboard engines. This eCommerce Internet Company uses a unique, proprietary workflow to quickly and efficiently identify, source and bring new replacement parts to market through a data mining process that allows the company to track the progress of each product from the time it is identified, to the point when it reaches its selling potential.
Selling in the United States, Canada and Mexico through various Amazon Channels and its own Shopify storefronts, the company has negotiated unbelievable payment terms with sourcing manufacturers and has extremely low product concentration levels. The combination of quality, workflow, payment terms and low concentration levels in a highly sought after segment makes this brand highly valuable.
As internet business owners ourselves, one of the things we love about this particular business, and that we feel separates it from others in the crowd, is its payment terms. The company uses an Asian Sourcing company as well as Direct Factory relationships for its products. 75% of stock is purchased from the sourcing company, which provides NET 30 terms from the time the product is delivered to the US with zero down at time of order. For larger orders ($350,000+), the company is able to break up payments even more with 1/3 at NET 30 from the time the product is delivered to the US, 1/3 NET 45 from delivery, and 1/3 NET 60 from the time the product is delivered. The remaining 25% of products purchased directly from a factory is NET 40 from the time the factory ships the order with ZERO down at time of order. These terms not only allow a company much more flexibility as it relates to inventory management (especially during times of growth), but it also provides much need free cash flow to help a future owner of the company achieve a faster ROI.
Ownership has focused wisely on brand awareness and quality, resulting in a powerful brand that is ripe for additional opportunities, both at retail and wholesale. This business has a few performance factors that make it stand out from the eCommerce crowd:
1.10 – 20 Best Seller Badges are common at any given time.
2.Operates primarily on the Amazon Platform with amazing Seller Reviews.
3.Super low SKU concentration – less than 3% of sales generated from any one SKU.
4.Well-known brand in the aftermarket space.
5.Proprietary In-House Software for Inventory Management, Reporting & Trend Monitoring
The company operates on a stock and ship platform for its global fulfillment needs, helping to ensure quality across the board to all customers across every market. They have even worked out a deal with its manufacturing partners that 100% of all defective items are credited by the manufacturer. This retailer has effectively leveraged an enviable market share against some of the stiffest competition in retail today through its attention to detail and quality product offerings.
Thanks to the nature of this brands sector, its highly rated ASINs, strong brand presence and ability to ROI right out of the gates due to respectable payment terms, this savvy retail business is ready to be taken to the next level thanks to its “next level” scale potential. With growth knocking at the door and new product options readily available to keep the brand fresh and relevant for years to come, this is a fantastic opportunity to jump into a growing retail space in the automotive sector with highly consistent growth and robust infrastructure immediately at hand.
This eCommerce Retailer Represented by:
Technology & Website Business Brokers
Listing ID: WC1021
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