Website Closers® presents an eCommerce company that has attracted the loyalty of a fast-growing number of people who own popular vehicles made by German car manufacturers, by marketing to them a wide selection of aftermarket accessories and parts. Sales have gotten strong enough that the company now has a massive 3,280+ SKUs available on their WooCommerce site.
Their Repeat Customer Rate has risen, and with it, the company’s Average Order Value has shot up in the past 6 months from $884 to $1,093.
In short, the company has become a trusted source for parts used in top German cars, including Mercedes-Benz, Audi, Porsche, and BMW, as well as numerous European exotic vehicles. The company is looking at significant growth in the coming years. They represent more than 100 aftermarket brands, and the company has access to more than 100,000+ products being made available at wholesale prices.
They are quickly building up a reputation among car owners for quality products, fast deliveries and excellent customer service. They are also in the enviable position of now expanding sales from DTC to a growing number of wholesale accounts, with their reputation getting particularly strong among automotive shops. The company can easily and effectively retool its successful marketing strategies to boost these B2B sales and enjoy skyrocketing revenue growth as a result.
The market for aftermarket auto accessories is certainly a vibrant one today, worth $406.73 Billion and expected to increase to $647.29 Billion by 2030. The consumers’ love of their vehicles and desire for the ultimate in high performance, comfort and convenience is driving these sales higher, as consumers show no reluctance to spend their disposable incomes on items that enhance the quality of their beloved cars.
This is particularly true of the German auto industry. Americans have a clear love affair with luxury German autos, and the German manufacturers appear to have an excellent understanding of how to build cars that Americans can’t resist. Today brands such as BMW, Mercedes-Benz and Porsche remain highly profitable. This company has parts suitable for all of them.
Now, with growing customer loyalty and an emerging retail base, this company is ready to meet the needs of buyers who share a passion for these German vehicles.
So, it would be highly instructive to look at how this company grew its business to reach this position.
The company offers a wide variety of performance parts but they maintain no inventory, as they have drop ship arrangements with more than 100 brands.
This has been a highly cost-effective approach for this enterprise. Products are sourced directly from the manufacturer, who then handles the shipment to the customer. This company works with one main supplier that provides up to 30% of their brands, while the rest comes directly from individual manufacturers.
Their products are highly diverse and range from exhaust systems to carbon filter body kits and ECU Tunes, and no single product tends to dominate sales. Several of their suppliers allow the brand to white-label products under their own brand name.
They now serve customers of all ages and locations across the U.S. and internationally, and approximately 20% of customers are returning to purchase more items after their first order.
While sales are still conducted entirely on the company’s website, their sales have started to shift recently. Although the bulk of their sales has been DTC, a rising 10%+ of sales are now from automotive shops and other businesses utilizing them for their parts supply.This is giving the company more repeat business, and each new wholesale customer is now generating up to $20,000 per month in additional revenue for them.
The brand has a multifaceted approach to marketing that includes running PPC ads on Google, which has provided them with the bulk of their sales.
With nearly 19,000+ subscribers in their email database, they have an email marketing campaign that includes sending out discount codes and links to their blogs.
Social media marketing is a key tool for them with 1,000+ followers on Instagram, and video marketing on YouTube, where they have 12,000+ viewers. On Instagram, the company not only posts content regularly, but also shares customer posts. Facebook is also a key tool for them, since the company is part of numerous industry-related Facebook Groups where they drop links to the website and answer questions about products.
Finally, the company has a robust SEO program, with their entire website fully optimized with keywords in both the texts and images.
These tools are working to bring new visitors to the website. The company has averaged 45,000+ unique new visitors per month over the last three months.
There are certainly additional marketing tools that the company could launch, including an affiliates campaign that would take full advantage of the many people associated with these popular German vehicles who could test and endorse their products.
This is a turnkey eCommerce company in the lucrative automotive industry and one that requires a workload of no more than 10 hours per week from the current owner. The owner now focuses on tasks that include accounting, ad management, fraud prevention, and assisting the company’s employees, which include a full-time salesperson and an administrative aide who works in a contract position.
The beauty of this position it can easily be operated as a one-person shop with just two employees, while still having plenty of scale opportunities to take this business to the next level. The company has received glowing reviews from their customers and their well-earned reputation among those passionate about luxury German vehicles is one of the company’s strongest selling points.
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