Website Closers® presents an eCommerce business operating in the phenomenally profitable field of auto parts and accessories, but one that has become a clear leader in its niche vertical of attractive efficient trim accessories for popular Tesla model vehicles. With their fully branded and proprietary products that they design themselves, this company has been driving profits to new heights, while revving up its economic engine for future success through a recent expansion onto Amazon
and the potential to launch new product lines.
This company presents a variety of strengths to a buyer, including being a well-recognized brand, strong relationships with suppliers, a fast-growing customer base providing the company with highly enthusiastic reviews, a growing Repeat Customer Rate, and a highly effective marketing campaign that connects them with influencers within the Tesla world. It should be very apparent to any buyer that this business has a revved-up engine and the wheels to last the long journey toward increased profitability.
The company decided to operate within the lucrative field of auto accessories due to the industry’s rapid growth in our auto-dependent society. Today, there are 284 million personal and commercial vehicles registered to drivers in the U.S. alone, and 24% of American households own 3 or more cars or other light vehicles. That includes 3.4% that own more than five vehicles. The American love affair with their car is well documented, and consumers have demonstrated a willingness to
commit serious disposable income to items designed to enhance their vehicle’s performance on the road, and to make it more stylish, attractive, comfortable, and convenient inside.
The light-duty auto parts industry is valued at $341 billion, while the entire automotive aftermarket industry is valued at $39 billion. People are more comfortable than ever purchasing parts and related accessories online, which is why so many eCommerce companies are now selling specialized items for vehicles. The total automotive eCommerce industry was valued at $38 billion, with $19.8 billion coming from eCommerce websites and $18.3 billion coming from third-party sales on marketplaces such as Amazon or eBay Motors. This online market is projected to grow to $67 billion by 2020.
Furthermore, the electric vehicle market is one section of the automotive market that is consistently growing in recent years. Tesla is paving the way to an electrified future in the automotive industry with a tremendous following and growth potential.
Recent environmental regulation, such as in California and Europe, where all new cars and passenger trucks sold there are required to have zero emissions by 2035, is only further proof that the EV market will continue to expand leaving much room for this company to grow with it.
This company is a leader in the design and manufacture of aftermarket aero trim accessories for Tesla vehicles, offering great value on their Average Order Value of $239. With nine SKUs, they provide customers with the ability to quickly change the look of their Tesla vehicle without having to either visit a local tire shop or bust their bank account.
Their products are designed and made in the U.S. and are developed around the premise of quality and innovation. These products are now considered benchmarks in the market. Their SKUs feature stylish designs, easy at-home installation, quality materials, and a design that helps to enhance the performance of the vehicle.
All products are manufactured directly for this company and sold under their brand name. With the company always stocking 3 months’ worth of inventory to keep up with the high volume of orders, they are now making 10-30 shipments daily.
The company has received a large number of 5 Star reviews from customers who rave about how attractive the product looks on their vehicles, and how easy they are to install. That word-of-mouth advertising has enabled the company to become well-known for their proprietary designs. Their sales are up 31% this year compared to 2021, and net profits have risen 35%.
This is also boosting their Repeat Customer Rate, which is now at 17% and rising. With more than 12,000+ products sold since they launched 3.5 years ago, they are generating repeat orders from existing customers buying replacement kits. Their typical customer is a middle-class man between the age of 30-50, a Tesla owner with disposable income, and who puts a high value on quality over cost. Their marketing has helped to drive sales higher. A key aspect of that has been their partnership with influencers on YouTube. These partnerships boost sales because their influencers are connected to the Tesla world, helping to introduce the brand to their target audience.
Other marketing tools are also working for them. The company has 16,000+ subscribers in their email database, which they tap into for promotions and discounts. They do the same with PPC ads run on Google, YouTube, and Facebook. These ads are working, since the company now averages 35,490+ unique monthly visitors on their website, which includes an SEO program that helps drive organic traffic.
The company has also started running PPC ads on Amazon, where they just shifted their listings to diversify their sales channels away from reliance on their site. The Amazon listings went live in the Fall of 2022. Operating on Seller Center, the company is looking to capture a different type of customer. Since their supplier’s production capacity can support an Amazon presence, the company projects significantly higher earnings by Spring 2023.
The current ownership works mainly on financials and strategy, no more than 20 hours per week. All operations are handled from the owner’s home, with orders downloaded from their website, then sorted, formatted, and uploaded to their 3PL warehouses.
Products are shipped from those 3PLs, with an average of 10-30 orders being sent out each day. With at least three months’ worth of inventory maintained, new orders for plastics are being submitted every few months.
This system has worked very efficiently at keeping customers happy and enabling the company to expand its sales channels to drive profits higher. Moving forward, they can continue their growth trends by adding new products, including different kinds of auto accessories, and introducing products not related to Tesla. The company could also sell on additional marketplaces such as eBay and Walmart, and target products for the emerging electric vehicle market.
This company is picking up speed on their sales and profits – the perfect time for a buyer to get into the driver’s seat.
