13-Year Ecommerce Brand: Premium Private Label Hair Care Products with Custom Formulas by a Chemist on Amazon FBA, Shopify, and Wholesale Channels
This company is a well-established eCommerce brand, offering high-quality, custom-formulated haircare products for professional use. They have an impressive 13-year track record of success and a strong customer base across multiple channels. Their chemist-built formulas and use of natural ingredients set them apart in the haircare industry.
OPERATIONS
The company’s 16 SKUs are manufactured in two US facilities and sold through direct-to-customer sales via Shopify (47%) and Amazon (15%), as well as through wholesale accounts (32%) and distributors (7%). They maintain a large inventory of products and have a daily shipping capacity of 50 to 200 shipments.
The company stocks and ships out of their own warehouse, where they maintain three months of inventory in stock at all times. They order wet goods once a month and aerosols quarterly.
MARKETING AND KEY METRICS
The company’s marketing strategy includes social media (with 14k+ Instagram followers and nearly 9k Facebook followers), video tutorials, subscriptions, and an affiliate program. They also leverage positive customer feedback and reviews to build brand awareness.
The company has opportunities to target big-box retailers and expand internationally using their current Amazon platform, where they already sell on Prime.
The company’s average order value has increased from $47.77 to $50.14 as their loyal customer base continues to grow. Sales of their top-selling hairspray make up just 30% of revenue, demonstrating a healthy balance among their other products.
Their typical customer is a woman between the ages of 45 and 60, with median income and fine or thin hair looking for a reliable and effective product they can use daily. As more of these customers make repeat purchases, their Average Order Value has increased.
BUSINESS MODEL & RESOURCES NEEDED
The company employs two full-time workers who handle administrative duties, sales, and warehouse management. A marketing agency oversees their website maintenance and advertising campaigns.
THE INDUSTRY
The hair care products industry is projected to grow to $102 billion by 2024. As buyers increasingly seek out all-natural products or those that address specific conditions, such as dry or thin hair, there is a greater recognition today than ever before of how important healthy hair is. This industry is experiencing plenty of innovation as consumers are willing to spend more on quality products they like.
OPPORTUNITIES TO SCALE
There are opportunities to target big-box retailers and expand internationally using their current Amazon platform. The company has demonstrated strong growth potential and consistent sales growth over its 13-year history.
Asking Price: $1,700,000
Gross Income: $981,408
Cash Flow: $305,597
Year Established: 2009
Employees: 3
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