WebsiteClosers® presents an eCommerce Brand that has raced up the rungs in the Performance Aftermarket Auto Parts industry since 2011. They sell a wide selection of superchargers, suspension, exhaust, fuel systems, injectors, wheels, tires and other equipment to avid car enthusiasts, with their stock being sourced directly from manufacturers or through distribution warehouses.
Their SKUs are available at a high $1,190 AOV, and they see generally steady sales throughout the year. They sell primarily through their own website, with some sales stemming from their eBay site, and generate 95% of their profits from DTC sales. The rest of their revenue is generated through their B2B customers, who are typically small shops leaning on the brand’s buying power. The most recent 12 months saw over $16 Million in Sales, 16% over the prior year.
Business Broker Takeaways
1. Organized Operations. Current ownership spends their work week managing the brand’s normal business administration, ordering inventory, instructing their sales team, and handling the brand’s HR department.
The rest of the company’s day-to-day operations are managed by the knowledgeable team they have in place. The team’s experience in their industry allows them to offer quality customer service on their website, message boards, emails, and other channels, strengthening their company reputation and their brand/buyer reputation.
2. Effective Marketing. The brand generates most of their new customers through paid media, such as their Google and Meta ads. These ads, their SEO strategy, and their email marketing campaign to their 100,000+ subscribers are outsourced to agencies, allowing the company to attract new customers with little effort.
They supplement these strategies with occasional posts on social media posts, which, together, led to the brand seeing 1.84 million visitors to their website last year.
3. Hybrid Inventory Model. The company utilizes a hybrid inventory model to handle their products, with some products being shipped direct from manufacturers and distributors and $1 million in inventory being held in their roughly 5,400-square-foot warehouse at any given time. They place new orders on a weekly basis and ship anywhere from 40 to 60 shipments per day.
Scale Opportunities
There are various ways that a buyer could hit the gas and take the company to the next stage of their growth. For example, they could expand their product catalog, particularly through private-label manufacturing, to increase margins, strengthen brand recognition, and further differentiate themselves in their market. Additional products would also help make them more of a one-stop shop among customers looking for automotive aftermarket products.
The company could promote new and old products alike by increasing their advertising efficiencies. They could optimize their existing ads and increase their investment in their SEO strategy, content marketing, and social media posting for a boost in traffic.
The brand could also develop partnerships with influencers and affiliates in the automotive industry to introduce their products to a broader audience and drive new sales. Additionally, the brand could launch a membership program to connect BCR clients, which would help build a stronger community around the brand.
Conclusion
This acquisition has been on the road to success for the past 14 years, with a dedicated following, low overhead costs, and a strong reputation backed by a team with extensive knowledge of the industry. There is ample room to scale with the right buyer at the wheel, making this a great opportunity for an ambitious new owner.
