10-Year Hair Accessories Ecommerce Retailer with Amazon, Walmart, and Other Channel Sales and Steady Year-Over-Year Growth
This successful eCommerce retailer specializes in the sale of hair accessories. They have shown consistency in growth and profitability over the past 10 years, with a 30% revenue growth last year and a projected 50% increase in profit for 2020 compared to 2019. The company has a diverse range of targeted products sold across a variety of sales channels, including Amazon, eBay, Walmart, and their own website. With over 620 products and strong reviews, the business is well-positioned in the evergreen beauty and hair products market.
OPERATIONS
The company operates on a 100% inventory model, leveraging a home office that has been converted for storing, holding, packing, and shipping inventory. The digital catalog is updated every day and the website is mobile-friendly and well-automated. The current owner works 40-50 hours per week, with part-time help filling orders and aiding in photography. A new owner may reduce workload by hiring additional full-time staff to manage website updates and fulfillment.
The home office is currently used for holding and shipping inventory, but a new owner could easily transition this to another location like a warehouse or office space. The company stores and ships all products from a 1500 sqft home office with the help of part-time employees who aid in packing and photography for around 20-25 hours per week.
MARKETING AND KEY METRICS
There are several exciting opportunities for the company to expand, including creating an in-house brand, increasing the number of SKU’s, extending to Amazon’s international storefronts, and utilizing social media to generate a following on platforms like Instagram and Pinterest. The company already has a solid foothold in the existing market and an extensive presence across several digital sales channels.
The company has an extensive presence across several digital sales channels, including Amazon, eBay, Walmart, and its website. There is an opportunity to expand the company’s reach by creating an in-house brand, increasing the number of SKU’s, extending to Amazon’s international storefronts, and utilizing social media to generate a following on platforms like Instagram and Pinterest.
The business has consistently shown strong year-over-year growth, with a 30% revenue increase year-over-year and a projected 50% increase in profit for 2020 compared to 2019. They have received a 5-star rating and a 99% lifetime positive review on Amazon. The company stores, holds, packs, and ships all of its inventory, leveraging a 100% inventory model.
The customer base for this business is broad and diverse, with anyone interested in hair care and self-care routines being potential customers. The business has received a 5-star rating on Amazon, indicating customer satisfaction.
BUSINESS MODEL & RESOURCES NEEDED
The company is currently operated by one owner, who works 40-50 hours per week, and employs part-time help for 20-25 hours per week. A new owner may hire additional full-time employees to manage website updates and fulfillment responsibilities, reducing their workload to only overflow work and strategic decision-making activities.
THE INDUSTRY
The business operates in the evergreen hair accessories market, which has a diverse range of products and customers. The market includes hair ties, clips, headbands, and more. Multiple industry trends support continued demand for the products, including the growth of influencer marketing and increased focus on hair care and self-care routines. The industry is also highly competitive, but this business has carved out a unique niche and is well-positioned to continue its growth trajectory.
OPPORTUNITIES TO SCALE
The business has several opportunities for growth, including creating an in-house brand, increasing the number of SKU’s, extending to Amazon’s international storefronts, and creating partnerships with hair salons for commercial supply. There is also a chance to leverage social media platforms to create a following through influencer partnerships. A new owner may also diversify their offerings by establishing connections with other suppliers.
Asking Price: $650,000
Gross Income: $385,322
Cash Flow: $176,994
Year Established: 2010
Employees: 1
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