18 Year Old Beauty Products Ecommerce Brand on Amazon FBA: One of Amazon’s First Beauty Product Sellers

An established eCommerce business that sells beauty products on its website and Amazon for over 18 years. The company has prioritized establishing trust with its customer base by offering quality products, bringing a diverse array of products to the market and strong relationships with its suppliers.

OPERATIONS

The day-to-day operations are managed by a small team while marketing is outsourced to a third-party contractor. Between 40 and 75 orders are shipped daily, and $80k to $125K worth of inventory is stocked throughout the year, ensuring a strong presence of product availability.

The business has strong supplier relationships, with reliable suppliers that are all U.S. based. Over 44 SKUs are private labeled and some of these suppliers are semi-exclusive as well, limiting the products available to competitors.

MARKETING AND KEY METRICS

The company sells nearly 60% of its products through Amazon. It performs tremendously on Black Friday, Cyber Monday, and holidays. Women aged 25 to 65 with disposable incomes make up a majority of the customer base and they typically buy again within 6-8 weeks.

The business sells on its own website and primarily through Amazon.

Total revenues consistently exceed $2 million year after year. The business has a 4.8-star store rating on Amazon and carries the unique privilege of being one of Amazon’s earliest beauty stores, which gives the new owner significant advantage over the competition.

The business appeals to both men and women between the ages of 25-65 with disposable incomes who typically purchase again within 6-8 weeks.

BUSINESS MODEL & RESOURCES NEEDED

Daily tasks involve a CSR team that answers phone calls and emails and then places orders. The business only needs 2,000 to 2,500 sq. ft. to fully function, and already has a clean and safe warehouse in Texas for its operations.

THE INDUSTRY

The beauty industry is worth more than $532 billion and is expected to grow at a compound annual growth rate of 5.5% from 2020 to 2025.

OPPORTUNITIES TO SCALE

Since the company has a great standing with Amazon, the new owner will gain a significant advantage over the competition. New companies have a hard time gaining ground on Amazon because of the lack of experience, inability to operate cleanly within Amazon’s terms and conditions, and the lack of ranking a brand-new entrant onto the platform would undoubtedly have to deal with.

Asking Price: $500,000
Gross Income: $2,212,014
Cash Flow: $136,758
Year Established: 2004
Employees: 4

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Amanda Stanley

Amanda has been a professional writer since 2010. She writes during the day and reads by night. She has accumulated knowledge by scouring the internet and reading informative books. Concurrently, she developed a passion for educating people through her blogs and web tutorials. She is an earnest believer that knowledge is power.

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