Website Closers® presents an eCommerce company that sells aftermarket automotive parts online through various channels. The business has been in operation for more than ten years, during which time it has polished its processes and built a talented operations staff. It is now set for substantial expansion and can be simply transferred to new ownership. Existing leadership is eager to support a buyer with any requirements to seamlessly hand over operations so that they can operate effectively soon after taking the reins.
The automotive aftermarket parts industry refers to manufacturing and distributing parts, accessories, and other products used in the repair, maintenance, or customization of vehicles. With the increasing demand for online shopping, the industry has undergone a significant transformation in recent years, shifting towards eCommerce platforms.
Online sales have become an increasingly important channel for industry professionals due to convenience, accessibility, and cost-effectiveness. Customers can easily browse and purchase products from the comfort of their homes, and retailers can expand their reach to new customers and markets without needing a physical storefront.
eCommerce platforms have also allowed for more efficient inventory management, order processing, and delivery systems, which can ultimately lead to a better customer experience. Furthermore, the availability of online reviews and product information has helped customers make informed purchasing decisions.
This company was created to supply high-quality aftermarket vehicle parts, such as front grilles, fender liners, brackets, lighting, and mirrors, at only a fraction of competitors’ prices while remaining fully committed to delivering unrivaled customer service.
Products are sourced from three primary suppliers and sold under the company’s trademarked brand names. Some top-selling items are kept in stock while others are shipped directly from the manufacturer, given the enormous range of products, often approaching 45,000. Notably, the business can double that extensive sku count through its current suppliers alone.
The business enjoys strong sales throughout the year and relies on no individual product to drive sales. While the majority of revenue is derived from Amazon, it accounts for less than 50% of total Revenue. Making the sales channel mix of this business well diversified. Management is marketing its website more aggressively and expects it to account for the bulk of sales in the near future.
Marketing comprises Amazon PPC, Google Ads, organic social media, and eBay promotions. The typical customer is diverse, including repair and body shops and individual do-it-yourself enthusiasts. The former tends to have a higher average order value and repeat purchase rate, as expected with wholesale, while the latter DTC segment has a higher order volume that brings in a healthy income stream.
The owner focuses primarily on supervising daily business functions, identifying methods to scale, and handling marketing efforts. A warehouse assistant handles most day-to-day tasks in that department, while VAs manage orders, customer service, and administration. A contractor administers Amazon PPC.
As successful as this business is, there are various methods to scale as identified by the owner. These include expanding the company’s offerings on Amazon and utilizing FBA to help the company with logistics, customer service, and returns.
Implementing SEO strategies is worth considering and can increase the company’s visibility on search engines and drive more traffic to its website. This can include optimizing product pages and creating relevant content.
An aggressive marketing campaign will drive traffic to the company’s Shopify website. This can include paid advertising, social media marketing, and influencer partnerships. Additionally, retargeting customers interested in the products would increase conversions.
Growing the email list would provide a cost-effective marketing channel. Email campaigns are useful when promoting new products, offering discounts, and encouraging repeat purchases.
Expanding channels to retailers within specific niches is another method to contemplate while developing the company’s SKUs to complementary products would likely increase the average order value and provide a better customer experience.
As an SBA Pre-Qualified business, investors can acquire this company for less cash with the loan amortized over a decade. This enables a qualified buyer to keep debt service payments low, optimize cash for growth and payouts, and take over a profitable business in a growth market.
The eCommerce sector is driven by rising customer knowledge of various vehicle parts and their technical facets. The ease of purchasing them online, the increasing number of vehicles on the road, and the rising frequency of traffic accidents all contribute to the market’s expansion. Furthermore, increasing average vehicle age, surging number of DIY consumers, and expanding automotive aftermarket are the most significant growth drivers. Due to the temporary closure of many traditional stores during the pandemic, the eCommerce industry in this area had a considerable boost in revenue, which is still climbing. Consumer purchasing habits are expected to shift from traditional sellers to online platforms, accelerating global eCommerce in the vertical.
