7-Year Men’s Grooming Products Ecommerce Brand – 30% Margins, Amazon, Shopify, & Walmart Sales & Strong YOY Growth
This 7-year-old eCommerce brand specializes in selling private label combs, brushes, scissors, oils, balms, and kits for men’s grooming. Their primary target audience is men who want to maintain a groomed appearance at all times. However, their products are also popular gifts for women to give to the men in their lives. With Amazon as their main sales channel, the company has a rating of 4.9 and has diversified to sell products on Shopify and Walmart. The company enjoys steady growth (30%+ net margins) and impressive scale opportunities. They have proven to be strongly run and require only 10 hours of attention from the owner per week.
OPERATIONS
The company sells their 43 active SKUs with a $13 average order value. They’ve added 10 new products in 2022 alone. Their customers include both men and women, with women making up 40% of their customer base. The company sources most of their products from two reliable and creditable manufacturers and sells all their products under their brand name. Amazon FBA helps them with fast shipping and handling the majority of their customer service and shipping issues. The owner only spends 10 hours per week running the business and mainly focuses on inventory, PPC ads, and responding to customer inquiries. They have no employees and rely on Amazon to handle customer service issues.
The company sources most of their products from two reliable manufacturers, offering them a wholesale price. They sell all their products under their brand name and use Amazon FBA for fast shipping, which handles most of their customer service and shipping issues.
MARKETING AND KEY METRICS
The company heavily relies on Amazon as its sales channel, but they’ve also diversified to sell on Shopify and Walmart. They were successful in using Amazon’s Subscribe & Save program for their consumables products oils, and balms. They’ve also taken advantage of PPC ads on Amazon, and they have 700+ active subscribers who have signed up for their recurring revenue option. They have a social media reach with 3,600+ followers on Instagram and 2,100+ followers on Facebook, and they have 6,000+ subscribers in their email database. They also have an SEO program that includes a blog on their website.
The company heavily relies on Amazon as its primary sales channel, but they’ve diversified to sell on Shopify and Walmart to reach more customers. They’ve also used Amazon’s Subscribe and Save program and PPC ads for Amazon to generate recurring revenue.
The company enjoys steady growth (30%+ net margins) and impressive scale opportunities. They’ve had revenue growth of 130%, and with seven years in business, they have established a loyal audience. They have 43 active SKUs, 10 new products in 2022 already, an average order value of $13, and 700+ active subscribers. They have a 4.9-star rating on Amazon and have been awarded numerous Amazon Choice badges.
The customer base is primarily men, but women also make up 40% of the customer base, mainly between the ages of 25 and 54 who buy the products as gifts. The 700+ active subscribers provide revenue through the Subscribe & Save program.
BUSINESS MODEL & RESOURCES NEEDED
The owner currently spends 10 hours per week running the business, focusing mainly on inventory, PPC ads, responding to customer inquiries and reviews, checking PPC ads and inventory, and reordering or shipping the products. They have no employees and rely on Amazon to handle customer service issues.
THE INDUSTRY
The Men’s Grooming industry is projected to be worth $90 billion globally by 2025. Increased hair care awareness contributes to that growth, and Millennials and Gen Xers are dominant consumers of these products. Companies are seeking more sophisticated products to introduce to the market, which creates growth opportunities. The eCommerce brand is ideally positioned to become a leader due to its seven years of experience and product diversification.
OPPORTUNITIES TO SCALE
The eCommerce brand is set up for expansion into other men’s health and grooming categories. Upselling to their existing customer base and expanding their audience would help profits skyrocket. The company has effectively laid the groundwork for a profitable future.
Asking Price: $2,300,000
Gross Income: $1,882,088
Cash Flow: $581,078
Year Established: 2016
Employees: 0
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