stylish woman wearing trendy clothing and accessories, holding shopping bags

Women’s Apparel & Accessories Business with 10 Years of Success and Over 1 Million Followers

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The eCommerce Fashion Retailer is a dynamic online brand specializing in women’s apparel, shoes, and accessories. With over 10 years of experience in the industry, the company has built a strong reputation and a loyal customer base. They have over 1 million social media followers and have generated over $100 million in online sales. The company offers a vast catalog of products, including denim tops, dresses, activewear, swimwear, loungewear, and accessories. They primarily sell popular boutique brands, but they have also successfully launched their own line. New styles are added to their inventory on a daily basis.

OPERATIONS

The company operates primarily as a stock inventory model, with 4% of products being drop-shipped. They stock and ship products from their office and warehouse. In 2021, they shipped 487,472 orders, averaging 1,900 orders per business day. The current lease is set to end in September 2023, providing the buyer with the opportunity to reduce the building size or relocate. The company maintains a cost of goods of $1.5 million, which is typically eight weeks’ worth of inventory. They have scaled back buying in 2022 to focus on profitability.

The company utilizes a stock inventory model, with 96% of products being stocked and shipped from their office and warehouse. They maintain a cost of goods of $1.5 million, which is typically eight weeks’ worth of inventory. The company had supply chain issues in 2020 but has resolved them. In 2021, they overbought to meet the high demand and experienced year-over-year growth. In 2022, they have scaled back buying to focus on profitability.

MARKETING AND KEY METRICS

The company’s marketing efforts are primarily driven by their Ambassador Program, which has over 10,000 Ambassadors promoting their products. They also have a loyal following on social media, with over 1 million followers. Email campaigns and SMS blasts are used to engage with customers, along with abandoned cart reminders and back-in-stock notifications. The company has a 44% repeat customer rate and receives glowing online reviews, indicating the success of their marketing strategies.

The company’s primary sales channels are their website and social media platforms. Sales are robust year-round, with a significant spike in Q4 due to fall and winter fashion needs and the holiday season. The company’s growth has been driven by their Ambassador Program, which has over 10,000 Ambassadors promoting their products. There are opportunities for growth by expanding the Ambassador program, implementing PR efforts, strategic paid advertising, international expansion, and selling on additional eCommerce platforms.

The key metrics for this eCommerce business include online sales, repeat customer rate, social media followers, and the number of orders shipped. The company has generated over $100 million in online sales, has a 44% repeat customer rate, over 1 million social media followers, and shipped 487,472 orders in 2021.

The typical customer base for the eCommerce Fashion Retailer is women between the ages of 28 and 45. They are likely mothers who prefer to shop online and are looking for a connection and community where they shop. Budget-conscious, they enjoy the thrill of daily drops and potential fast sellouts. These customers spend time on social media and frequently visit the website to see new products. The company’s Ambassadors also serve as loyal customers, using their entire clothing budget on the eCommerce Fashion Retailer’s products.

BUSINESS MODEL & RESOURCES NEEDED

The company has a team of customer service associates and warehouse operations to support the business. The founders each work approximately 20 hours per week on the business, focusing on creative and marketing strategy, buying, and general oversight. They are looking to retire and believe a strategic buyer with digital marketing experience can take the brand to the next level.

THE INDUSTRY

The online fashion industry is a highly competitive market, but the eCommerce Fashion Retailer has thrived due to its strong brand presence, vast product catalog, and loyal customer base. The industry has seen significant growth in recent years, with more consumers preferring to shop online for clothing and accessories. The eCommerce Fashion Retailer competes with other online retailers in the women’s apparel, shoes, and accessories segment. Examples of competitors in the industry include ASOS, Boohoo, and Revolve.

OPPORTUNITIES TO SCALE

The eCommerce Fashion Retailer has several scale opportunities at hand. One opportunity is to expand their Ambassador Program, which has already shown significant growth. By marketing aggressively and effectively, the program can double in size, resulting in increased revenue. Other untapped opportunities include PR efforts, strategic paid advertising, international expansion, and selling on additional eCommerce platforms like Amazon. Bringing graphic tee design and production in-house for on-demand printing can also increase revenue and profit margins.

Asking Price: $9,500,000
Gross Income: $17,288,815
Cash Flow: $3,204,304
Year Established: 2012
Employees: 14

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