Our firm presents an eCommerce business with nearly 9 years of experience in the High-Performance Auto Parts Industry. Its more than 2,000 high-quality SKUs, fantastic customer service, and fast shipping rates have led to the brand having 31% net profit margins. Coupled with a high repeat order rate, and it’s plain to see that this enterprise has built up a well-deserved positive reputation for itself. And of course, with the demand in used vehicles rising now due to supply chain issues for vehicles, now is a great time to be a vendor in this industry. The brand has a strong appeal among do-it-yourselfers thanks to its wide selection of brakes, hub bearings, and suspension and steering kits. These white labeled products allow car owners to fix and upgrade their vehicles themselves instead of spending the extra money to take their vehicle to a repair shop or local mechanic.
The company has seen a particularly strong demand for their suspension and steering kits, which make up roughly 90% of all sales. They have also developed an Average Order Value of $75 along with their strong repeat order rate, reflecting those customers often buy products in bulk, and, after their satisfaction with their purchase, opt to return to the brand for any additional auto part needs.
The company stays ahead of their competition with their competitive pricing, assuring that their products will be more cost-effective than other options on the market. Though they have their own website, the business has seen fantastic success by focusing on the eBay platform, where 98% of their sales are currently being generated. eBay itself is a very popular online retail market, with 187 million users in 2021, and an estimated 3 out of 10 U.S. mobile users visiting the eBay app, meaning that their presence on the platform allows the products to reach a wide audience.
The business has achieved an astounding 99% positive Seller Rating over the past 12 months, based off more than 2,600+ reviews praising their reasonable shipping costs, great communication, and accurate product descriptions.
They have also branched out into Amazon recently, where sales have quickly started to rise. They’ve also started to develop a strong wholesale customer base, bringing in about $30,000 USD to $40,000 USD in profit through B2B sales alone. Their success on these platforms is especially remarkable given that they do not currently have a digital marketing plan, instead relying on eBay’s own internal marketing to drive sales.
This means that, by implementing a marketing plan, the company could easily skyrocket in size. They could strengthen their presence on Amazon by using PPC to advertise their products and send inventory to Amazon to begin selling on Amazon Prime, making for a more convenient and accessible way for customers to make their purchases. Their B2B sales can be improved upon by targeting auto shops and big box stores, who would have a strong interest in selling the best possible auto parts on the market.
They could also improve traffic on their own website by optimizing it for SEO, which would cause it to appear more frequently in search results for auto parts and related accessories.
Disclaimer: DealStream has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness. This listing does not constitute an offer to sell, solicit or make an offer to buy an investment interest. Offers to sell, or the solicitation of offers to buy, any security can only be made through official offering documents, such as a subscription agreement and private placement memorandum.