Case Study

How a $100M+ revenue online business was built with absolutely no investment in inventory of products or headache of shipping/handling.

Situation:

Automotive aftermarket (selling parts and accessories) is a multi billion dollars a year business. Most of the sales happen through the standard bricks and mortar stores.

Opportunity:

This provides an opportunity for a web based retailer to grab market share in this huge industry by providing these products online.
Solution:

1. Business Foundation –
   • Market research –
     • Identify the parts or accessories you want to sell.
     • Identify automotive parts and accessories wholesalers who drop-ship products directly to buyers.
     • Identify the wholesale price and typical retail selling price.
     • Identify the wholesalers’ process. Many wholesalers provide links to their database of their product and access to their inventory system so that customers know that the purchased product(s) is in their inventory.
• Sign contract with the selected company and get access to their product database.
2. Website development: develop ecommerce website with the following features
   • Easy navigation and search for finding parts and accessories.
   • Online credit processing.
   • Show all products on the website.
3. Increase Online Presence –
   • Optimize website by part/accessory name and part numbers.
   • Identify keywords used to search those parts and accessories.
   • Launch PPC campaign for each keyword and track its effectiveness closely.
   • Launch SEO/SEM to bring the website up for organic search at Google.
   • Accomplish 1st or 2nd placement for most important keywords.

Results:

1. Web businesses with $100M+ revenue and $25M+ gross profit.

Conclusion: