Website Closers® presents an eCommerce Company that operates in the Automotive Aftermarket space, selling products via 3 in-house brands. The company doubled sales over the prior year and has a lot of room to run.
Each brand caters to a specific niche in the market. The plethora of products offered under these 3 brands provides customers with everything they might need to customize their vehicles to their specific needs, and their history of high-quality aftermarket performance and tuning solutions has given them an excellent reputation. Their buyers are often so satisfied with their purchases that they return to the brand for future business, as evidenced by their healthy 30% Repeat Customer Rate.
They have thousands of products spread across their brands, which is made possible by their 90% DropShip structure. This allows them to maintain their sheer number of products without overworking themselves, without compromising on quality, and by not having working capital constraints associated with large warehouses, warehouse people, etc. They have an Average Order Value of $600, which is very healthy for the sector. Their average customer is a male between the ages of 21 and 52, and their international sales have steadily worked their way to account for nearly 10% of revenue.
The company’s in-house brands consist of the following:
Brand 1
The first brand providers their end users with modern, high-performance aftermarket automotive solutions with an emphasis on Ford Performance (especially Mustangs), Chevrolet, Dodge, and McLaren vehicles. This brand offers the lion’s share of products, around 9,000 SKUs.
Brand 2
The second brand was created with the goal of being the go-to hub for car enthusiasts seeking the broadest range of body tuning options. From carbon fiber accessories and wide-body kits to spoilers, their specialty lies in exterior mods to help customers’ high-performance vehicles truly stand out. They have the second-largest SKU count at roughly 2,200.
Brand 3
The last brand caters to devoted Nissan fans interested in leveling up their late-model rides like the 350Z, 370Z, and the latest Z series. They also provide performance enhancement packages for the highly coveted Nissan GT-R R35, making their products even more valuable for Nissan enthusiasts. They offer 645 SKUs.
Marketing
The current management is well-versed in Google Ad strategies and has worked to maintain a strong Return on Ad Spend. They wield a massive influence within the EcoBoost Mustang community and own several Facebook groups that grant them direct access to over 10,000 owners. On Instagram, they have nearly 20,000 followers and have the backing of two sponsored drivers who regularly collaborate with them by posting stories that keep engagement high. They have also earned over a million views on YouTube through their educational, entertaining, and Mustang-knowledge-centric on the platform.
These strategies combined have given them about 27,000 contacts in their email database, and an average monthly visitor rate of over 40,000.
Management
The owner spends over 30 hours per week on the business, with their primary tasks consisting of:
- Marketing on social media
- Making sure the Google ads are performing well
- Managing weekly tasks for employees
- Making sure the relationships between vendors are in good standing
- Financial reviews
They also have 4 employees on board working as sales and support staff, as well as a website inventory manager.
Scale Opportunities
Though the company is already on the fast track to success, there are several opportunities available that will let them pick up speed if utilized correctly. They’ve already established themselves on some of the most popular social media platforms to date, but there is still room for them to grow to strengthen their organic traffic.
They could also build up a presence on TikTok, which, as a site with immense virality potential, would be a great option for showcasing their products to a vast new audience. The company may also be interested in expanding their influencer marketing by partnering with new drivers, as they are the ones that other drivers might put more of their trust in.
They can improve their profits by investing in the development of wholesale business.. Though their international sales are on the rise, both options would dramatically diversify their revenue and give them access to a wider consumer base.. The company could also expand their product line to different models, letting them cover parts of the market that were previously going unaddressed.
Conclusion
This deal is a great choice for a buyer interested in exploring the lucrative automotive aftermarket industry. Their three brands give them excellent coverage of the market, and they have already laid the groundwork for a smooth ride to success in the future.
