Website Closers® presents an enormously profitable eCommerce company operating in the roaring field of Automotive Lights, and has quickly established itself as a top seller of Auto Headlight Products. Since inception, the company has illuminated the path to success and enjoyed remarkable year over year growth. This company has built up an impressive product line of 140 SKUs, with an average order value of $68. With their unique SKUs as a starting point, each one is cross compatible with more than 60,000+ listed products on their site, which in turn can then be placed in more than 80,000 vehicles.
This extraordinarily diverse product line has given the company a significant competitive edge. The fact that they also provide competitive pricing, an extensive list of high-quality products, warranty offers, and fast shipping have all helped make this one of the largest, fastest growing eCommerce sites in the lucrative auto headlights niche.
This is a business that could easily scale in the right hands. Leveraging opportunities such as adding new auto categories to the product line, expanding sales beyond the company’s Shopify site to popular eCommerce platforms, such as Amazon and Walmart, and expanding the company’s social media marketing efforts … an incoming owner could see enviable sales growth through all of this low hanging fruit.
The market for auto accessories of all kinds is booming, thanks to skyrocketing auto sales across North America. This company’s rapid success demonstrates how profitable it can be to market niche auto parts. This company was formed to market car headlight bulbs, batteries, products, and accessories. With offers including HID and LED lighting for cars, trucks, and motorcycles. As sales picked up, the brand continued to diversify its product line, offering fog lights, high beams, taillight bulbs, turn signal bulbs – literally any light source on a vehicle. The company also expanded to include other auto accessories such as battery jumpers and dash cams.
Effectively stocking 100% of their inventory, this company has a strong vendor mix. Nearly all their products are purchased from suppliers in California, which are sourced from China and India. About 5% are imported directly from China.
Sales are conducted entirely on the company’s two (2) Shopify websites; the brands quickly found a receptive audience for their products, particularly among men between the ages of 18 and 65. They are similarly well known in other key demographics such as car enthusiasts, night drivers, older drivers with vision concerns, long haul drivers, motorists in rural areas, and owners of classic cars. From the beginning, their competitive pricing has revved up sales to quickly reach a profitable and steady year-round level, although sales do pick up during the summer months.
Sales are now primarily done in the U.S., Canada, and Mexico, and they have several top selling products. LED products account for 55% of all sales, while HID products are an additional 40%. At least 9% of sales come from repeat customers, and those numbers are increasing.
The company ships products from its warehouse, and typically ships between 70 and 100 products per day. Their turnover rate is about 80% every 30 days, with new orders placed once a week and then twice a week during peak months. They also receive up to 20 customer service contacts per day.
The brand’s marketing efforts have successfully combined paid and organic advertising. Their PPC ads run on Facebook, Instagram, and Google. The company then has a successful SEO program that includes a blog on their website that helps drive organic search terms. Their web traffic has been increasing month over month as a result. The last segment of their marketing efforts has been email automations, which were set up this year and have already helped drive $20,000 in new revenue each month. The company benefits from having a massive email database of 80,000+ subscribers.
The company has done exceptionally well because their 140 SKUs are compatible with thousands of other listed products and more than 80,000+ make and model vehicles. One of the company’s strongest growth opportunities would come from adding new auto categories to the product line, offering customers an even more expansive list of accessories.
Another option to scale would be to expand sales onto other popular eCommerce sites. That could include Amazon, Walmart, and eBay, which would definitely have a major impact on gross revenues in a noticeably short time.
The brand could also continue to expand its social media and email marketing campaigns which have already proven to be highly effective at building up their fast-growing customer base.
The current owner now spends about 15 hours a week operating this business, with primary tasks that include managing customer service representatives and the company’s three suppliers. The company has one employee who handles order fulfillment.
As auto sales keep rising and Americans express a clear willingness to spend more on the vehicle of their choice, this trend has sent sales of auto accessories soaring to new heights. This is the perfect time to own a thriving eCommerce business that has established itself as a brand leader within this field.
This company’s accomplishments are hugely impressive, because they appeal to a niche field within auto accessories, that of car headlight products, and quickly turned it into an immensely profitable business, with sales exceeding $3 million. There are plenty of great options for scaling this business, ranging from SKU expansions to finding new sales platforms such as Amazon.
As long as car sales remain high, this business should continue to grow significantly.
