WebsiteClosers® presents an eCommerce Brand that has been on the road to success in the Performance Car Parts niche for 14 years.
They boast 353 product listings, which feature a wide range of shifters, shifter bushes, gear knobs and coilovers. Many of these products are either uniquely designed or customized specifically for them and sold under their trademarked brand. The company also DropShips suspension bushes, offering them as non-branded products to further increase their revenue.
The company is known for their focus on premium quality and performance and offer products at an AOV of $150 through online sales, dealers, and eBay. Their average customer is a male between the ages of 20 and 45, with a passion for modifying Japanese performance or modern muscle cars. This demographic has high LTV potential, adding to the value of the company’s loyal customer base.
Business Broker Takeaways
1. International Sales. While the company was founded in Australia, they have since expanded worldwide, with a significant portion of their revenue now coming from international markets. The company is especially popular in the US, where nearly 50% of their sales occur.
2. Strong Marketing Campaign. The brand utilizes a multifaceted marketing campaign to draw in new customers, which combines both organic and paid advertising.
They post organically on Instagram and Facebook to their 5,000+ followers, have a YouTube account with 30 videos that attracts around 1,600 views per month, implement various SEO strategies, and run email marketing to their 9,000 subscribers.
Their PPC efforts have been managed by a digital marketing agency for the past 3 years, and see a RoAS of 550%. Their 24 influencer partnerships are also very fruitful, generating a combined RoAS of 830%. The brand’s combined marketing efforts provide them with an average of 10,000 visitors to their website each month.
3. Straightforward Operations. Current ownership spends 35 hours per week packing products for retail, shipping orders, answering customer queries, and ordering and receiving stock.
As they currently have no employees on staff, a buyer could reduce their workload by hiring personnel to take over certain tasks, giving them more time to focus on scaling.
Scale Opportunities
A buyer could quickly begin scaling this brand by releasing new products, targeting new consumers and appealing to their dedicated customer base. They could introduce more short shifter models and accessories tailored to popular car models and expand into related automotive categories to create broader product lines.
The company could explore US-based fulfillment, which, if implemented correctly, could significantly reduce their logistics expenses and delays. By establishing US-based fulfillment, they could ship products from their manufacturers directly to the US, reducing labor costs and time.
They could also potentially work with a 3PL to handle their warehousing, order fulfillment, and shipment process. Additionally, by holding stock in the US, they could reduce their shipping times to improve customer experience and satisfaction rates.
US-based fulfillment would allow the company to more easily expand their presence in the market. By matching their per capita sales in the US to those in Australia, the brand could potentially see a 10 to 15x increase in US business, drastically increasing their revenue.
After establishing partnerships across the US to make their products more accessible, they could draw attention to their brand by implementing targeted marketing campaigns and attending key industry events.
These trade shows would allow them to directly engage with their core audience, strengthen their brand image in the states, and showcase the best qualities of their products.
Conclusion
This deal has a strong presence in their industry and has successfully cultivated a customer base locally and overseas. Their polished marketing campaign and high-quality product roster has earned them a great reputation, and with the right marketing efforts and investments, they could quickly boost their sales and develop a stronger hold in the US market.
