The target is an eCommerce Retailer in the Automotive Performance Accessories Space. The business caters to the most popular platforms in the sports car modification market. The company sells high quality aftermarket performance parts both in the United States and in Europe. Using a highly effective drop ship model with 15 to 30-day vendor terms, the Company carries zero inventory, requires no employees and has extremely limited working capital needs. This is a great opportunity for a novice eCommerce operator, or a bolt on player, to take the reins and scale this business beyond where it is today.
This Automotive Retailer sells almost entirely on Amazon US but has recently opened Amazon storefronts in the UK, France, Spain, Germany and Italy. In only two months in business, the European stores have already grown to account for over 20% of total sales.
Like most eCommerce retailers in the auto aftermarket space, drop-ship is the name of the game with wholesalers such as Vibrant, Motivicity, Pro Motion and others allowing eCommerce Internet Companies total access to literally any type of performance part for literally any make, model or year – all with zero up front inventory spend. This business has gone above and beyond, securing drop ship direct from literally dozens of prominent brand names, cutting the middleman out, lowering COGS, and boosting margin. It has distribution agreements with most of the top aftermarket manufacturers in the business, including such names as Holley, Edelbrock, Eibach, H&R, Precision Turbo, Vogtland, and Borla Performance, just to name a few.
Thanks to the continued and ever-increasing ubiquity of eCommerce as the default channel for nearly any purchase, niche and mainstream customers and manufacturers continue to enjoy an ever-improving symbiotic relationship, with increased demand driving increased supply of new and more diverse options, and the automotive performance accessory market is no exception.
This business is in a fantastic position to rapidly expand its customer base and SKU assortment thanks to its agile and lightweight drop-ship model, a consistently healthy and season-less customer base, and the option to instantly pump up the volume by taking its first step into the new world of eCommerce by selling on Amazon – almost anyone can operate this business from anywhere. This business is sure to do well on the market and will likely go under contract very quickly.
