Explosive Growth and High Margin Ecommerce Business: 23% Repeat Order Rate and 2100 Proprietary SKUs in Women and Men’s Swim Gear
This is a growing eCommerce brand that specializes in swimwear for men and women. They have a large selection of swim gear with over 2,100 proprietary SKUs. The brand is fully trademarked and has a strong presence on social media.
OPERATIONS
The business operates within a highly competitive vertical but has managed to achieve impressive results. They have an average order value of $83 and have generated nearly $350,000 in annual revenue over the past three years. Their repeat customer rate stands at 23%.
The business operates from a 600 square foot workspace, where they design and hold inventory for their swimwear products. They also utilize Amazon’s FBA services for some of their top-selling products. The supply and logistics are well-managed and can be easily relocated or outsourced.
MARKETING AND KEY METRICS
The company utilizes various marketing strategies to drive traffic and sales. They leverage paid Facebook advertising, Google advertising, affiliate marketing, and search engine optimization. These efforts have resulted in over 4.4 million webpage views in 2020.
The business currently sells its products through its own website, but there is potential for growth by expanding into other sales channels. They can leverage Amazon’s platform and explore opportunities with Walmart. Expanding the product lines and increasing the company’s presence on these platforms can drive higher revenues.
The key metrics for this business include the average order value, repeat customer rate, and annual revenue. With an AOV of $83 and a repeat customer rate of 23%, the business has been able to generate significant revenue over the years.
The customer base for this business consists of individuals who are looking for stylish swimwear for their beach and pool activities. The brand has built a loyal customer base through strategic marketing campaigns and a diverse product offering. Their products are designed to be unique and eye-catching, appealing to customers who want to stand out.
BUSINESS MODEL & RESOURCES NEEDED
The business is currently run by the owner, who handles website maintenance, eCommerce tracking, production oversight, and product design. They also have a small team consisting of a seamstress, a fabric cutter, and a shipping coordinator. There is potential for hiring a virtual assistant to reduce the owner’s workload.
THE INDUSTRY
The swimwear industry is highly competitive, but this eCommerce brand stands out with its proprietary designs and trademarked brand. They offer a wide range of swimwear for both men and women, combining European and Californian styles. The industry is constantly evolving, with new trends and fashion styles emerging each year. Examples of other successful swimwear brands include Victoria’s Secret, Speedo, and Roxy.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this business. They can expand their product offering on Amazon and Walmart, capitalize on their existing social media presence, and explore advertising efforts to reach a wider audience. By optimizing operations and implementing a third-party logistics service, they can also streamline their processes and increase efficiency.
Asking Price: $750,000
Gross Income: $450,952
Cash Flow: $217,684
Year Established: 2001
Employees: 4
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