Website Closers® presents a thriving eCommerce Amazon FBA business that has tapped into a highly receptive audience for their niche and powerful brand of trademarked and patented cargo trunk organizers that help transform the mobile back seat into a well-organized space. Through a smart advertising campaign that relied on PPC ads, the brand has gone from earning several thousand dollars in its first year to a stunning $2.6 million in 2020. This year, the company’s sales are projected to exceed $3.5 million, all on the back of 11 patent SKUs that has over 15,000 ratings culminating in a 4.7 Star status.
This company has spent 5 years growing steadily to reach an enormously lucrative market position. By successfully finding the customer base for their 11 SKUs, which have an average order value of $50, the company can grow exponentially. This brand markets its products on both Amazon and its Branded Shopify website. On Amazon, their reviews have been overwhelmingly positive, with a 95% mostly 5- and 4-Star seller rating. The brand has successfully advertised that their organizers are sturdy and built to withstand bumpy commutes, and their products eliminate the challenge of a messy car since this is among the largest and most effective trunk organizers on the market.
Launched 5 years ago, this business sells cargo trunk organizers and interior automotive accessories, enabling people to make full use of their trunk space. They developed 11 versions of the trunk organizer, manufactured for them in China. The company owns a patent in the US on these products and has 9 trademarks in both the US and Canada. While the brand markets their SKUs on both Amazon and Shopify, the vast majority of sales come from Amazon, where the brand has effectively used PPC ads to bolster sales. As their customer base continues to expand, the company has found its most loyal demographic is women between the ages of 28 and 55.
Sales have remained steady and consistent throughout the year, although revenue does peak around the holidays in November and December. Their products are sold on Prime and the company enjoys a tremendously high seller rating on Amazon of 99% based on 2,930+ reviews. Their automotive trunk organizer has been a #1 Best Seller on Amazon, particularly the black model, which makes up 30% of sales, and the black extra-large, which is 29%.
The company uses Fulfillment By Amazon for shipping, and they now maintain an inventory of about 4,400 units per month, which rises to 25,000 units during the holiday season. Turnover is around several thousand units per month.
Their marketing campaign has largely relied on PPC ads, not just on Amazon but also on their social media pages on Instagram and Facebook and through Google AdWords. The company posts occasional press releases on its website.
Offering their products in the U.S. and Canada, this company could expand internationally through Amazon’s foreign platforms. The company could also develop sales on other popular eCommerce platforms such as Walmart. Since the global automotive sector is extraordinarily strong and has expanded significantly in recent years, the market for interior car accessories is also booming right now. Whether these products are designed to augment the interior aesthetics of the vehicle, provide entertainment, or enhance the comfort of the riding experience, car accessories are witnessing significant demand across the globe. This niche brand is riding that wave and has demonstrated the ability to market its SKUs to a highly receptive customer base.
And since their main product is patented and trademarked, and has over 15,000 ASIN-level ratings, the moat has been set. Very few can compete with these KPIs in a meaningful way, and thus, the risk profile for this business is lower than most FBA Companies. This presents a unique opportunity for this company to expand through a more aggressive digital marketing campaign, particularly one aimed at boosting organic traffic. The company could redouble its focus on its social media pages and conduct a more thorough social media marketing campaign.
There are also options for expanding the customer base by launching an SEO program that includes a blog on the website to boost organic traffic.
The company could easily boost sales significantly by expanding their current product line. Interior auto accessories is a very profitable industry now, and the company could begin adding other types of interior accessories to the SKUs.
Expanding sales onto other popular eCommerce sites such as Walmart and Target would also enable this company to double or even triple sales, and so would an international expansion beyond the U.S. and Canada. Since this brand has already demonstrated tremendous profitability on Amazon, sales could be shifted to Amazon’s platforms in the European Union, Mexico, Australia, and other nations.
The current owners now spend between 5 and 15 hours per week running this business, with primary tasks that include business planning, advertising management, handling day to day operations, and managing customer service contacts. The company now receives 5 email contacts a day.
No special skills are needed to operate this business. To expand, a buyer would likely need working capital of between $40,000 and $75,000, and higher during the peak season of October to December.
There’s no question that today, people love their vehicles, and are ready to make more expensive purchases to have the car, truck or SUV that perfectly suits their needs. Customers are also demonstrating virtually no hesitation in making additional purchases for interior accessories that enhance the comfort and appeal of the driving experience. This brand recognized that trend and rode it superbly to create a phenomenally profitable eCommerce business, marketing 11 SKUs that have translated into sales that exceed $3 million.
With their well-established audience firmly in place, this brand could easily find ways to double profits – by expanding its SKUs, launching sales internationally, or boosting web traffic organically. There are multiple paths to higher levels of profitability for this company, and with auto parts accessories so high in demand right now, the timing couldn’t be better.
