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SBA Pre-Qualified Aftermarket Auto Parts eCommerce Brand – 10 Years in Business – Amazon, eBay, Etsy, Walmart & Branded Website Sales – 300,000 Monthly Uniques

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Website Closers® presents an SBA Pre-Qualified eCommerce Brand that offers Aftermarket Automotive Parts via a number of online sales channels. The company has been in business for over 10 years, and during that time, has refined its processes and created an agile operations team. It is now poised for considerable scale and can easily be transitioned to new ownership. Current ownership is excited to assist a new buyer with whatever is necessary to transfer the company smartly so that the buyer is in an excellent position to perform well immediately after closing.

As an SBA Pre-Qualified business, the company offers investors the opportunity to acquire the business for as little as 10% down, with the SBA 7(a) Loan amortized over an entire decade. This allows the buyer to keep debt service payments low, maximize cash for growth and distributions and take over a thriving business that is well-situated in a growth market.

The business was founded on the idea of providing top-quality aftermarket auto parts, including front grilles, fender liners, brackets, lighting, and mirrors, at a fraction of the industry-standard price while being fully dedicated to providing unsurpassed customer service. The company is both a dealer and a distributor.

Rising consumer awareness of different auto parts and their technical details drive the eCommerce sector. The convenience of purchasing them online, the rising number of vehicles in operation, and the burgeoning number of road accidents are a few factors adding to the market’s growth. Also, the increasing average vehicle age, booming number of do-it-yourself customers, and growing automotive aftermarket are the most substantial growth drivers. With the temporary closure of numerous brick-and-mortar businesses during the pandemic, the eCommerce sector in this niche saw a significant surge in income in 2020, which continues to grow. Consumer purchase preferences are projected to migrate from traditional sellers to online platforms, rapidly propelling global eCommerce in the automotive aftermarket.

The parts sold by this business are purchased from 3 primary suppliers and sold under the brand name of this business, which is a registered USPTO Trademark. They operate via COD terms with the suppliers. Given the enormous catalog, which currently comprises between 35,000 and 45,000 active products, management makes use of a hybrid inventory model.

Notably, they have the option to sell over 80,000 products, so there is ample room to build out the catalog (not to mention working with other suppliers). 20% of sales are parts stocked in the company’s 1,000- square-foot warehouse, while the remaining 80% of SKUs are drop shipped, which keeps down the cost of inventory. Between $150,000 and $200,000 worth of inventory is maintained on hand.

There is no concentration of sales on any particular parts. However, best-selling categories of products include the following, displaying the percentage of overall sales:

  • 20% Front Grilles
  • 10% Fender Liners
  • 10% Brackets
  • 10% Lighting and Mirrors
  • 10% Bumpers 1
  • 0% Fenders
  • 30% Others

These figures are primarily derived from sales on five platforms: Amazon, eBay, Walmart, Etsy, and the company website. Although Amazon is currently the primary channel, the ratio is expected to switch toward the website over the course of 2023 with new marketing and advertising initiatives.

The digital marketing strategy encompasses paid marketing on Google to maintain brand awareness, weekly posting on social media platforms, promoting listings on eBay, and an Amazon PPC campaign.

The diverse customer base typically comprises repair or body shops, individual car owners, and those in the fix-and-flip game. As a result, spending patterns are equally diverse. Repair or body shops order regularly and have a higher value. In contrast, individual car owners order once or occasionally and spend less. Sales are steady throughout the year, with a slight, expected reduction between November and mid-January over the holiday season.

The owner works 25 to 30 hours weekly, overseeing the day-to-day operations. He focuses on implementing strategies to facilitate expansion and manages all business marketing efforts. One full-time employee works as a warehouse assistant, managing returns, accepting inventory, and packing and shipping orders. Additionally, the company has virtual employees in order management, customer service, tracking, pricing, and listing and data entry. A third-party contractor is hired for Amazon PPC Management. Daily operations primarily include order processing and inventory management. Everything is in place for a smooth transition to a buyer.

The order processing procedure is straightforward.

  • Orders are received via eBay or Amazon
  • Those orders are placed with suppliers
  • Suppliers ship directly to customers
  • Customers confirm receipt of parts.

Inventory management involves receiving parts from suppliers and customer returns and logging them into the system. The company holds returns and refurbishes them as necessary to resaleable condition.

This business has the history, customer base, and service values that consumers love and appreciate, as would a buyer. In addition, no specialized systems or skills are needed for a new owner to transition seamlessly, making it ideal for a first-time operator to run while presenting enormous growth potential for an eCommerce or wholesale expert.

This eCommerce Brand is Represented by:

Technology & Internet Business Brokers

WC 2972

Asking Price
$ 3,800,000
Cash Flow
$ 848,431
Gross Income
$ 6,884,377
Year Established

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