A Beauty and Health Products Retailer with 20 Best Seller Badges and Proprietary Product Finder System Experiencing Powerful Year-over-Year Growth Across Direct-to-Consumer and B2B Sales
This eCommerce company specializes in selling beauty and health products. With a strong focus on OTC, haircare, and skincare verticals, they have established themselves as a prominent player in the industry. Their sales are growing steadily, and they have developed lucrative industry relationships. The company has potential for rapid growth through product expansion and improved digital marketing. They have a proprietary product finder system and hold 20 Best Seller badges on Amazon. The business operates in both direct-to-consumer (DTC) and business-to-business (B2B) sales channels.
OPERATIONS
The business follows a well-developed process of sourcing high-demand products in the beauty and health industry through their extensive supplier network. They have successfully gained approval to sell skincare products and over-the-counter medicines on Amazon. The company only selects products that have a minimum monthly selling threshold of 1,000 units. They have established strong vendor relationships and continue to expand their product catalog with new additions. The business leverages Fulfillment by Amazon for streamlined logistics.
The business has a strong supply chain network and vendor relationships that allow them to source a wide variety of sought-after products used daily by millions. They utilize Fulfillment by Amazon for efficient logistics and warehousing. The company has successfully scaled their inventory to over 460 SKUs and has the potential to add thousands of additional SKUs. They source products from individual retailers and distributors in the U.S.
MARKETING AND KEY METRICS
The company has focused on building strong vendor relationships as a key marketing strategy. They also use email marketing and text messaging to stay connected with customers and offer regular promotions. There is potential for further marketing expansion through aggressive social media campaigns on platforms like Instagram and Pinterest. The company can also utilize their existing customer base to drive sales through email marketing and organic traffic from a blog on their website.
The majority of the business’s sales currently come from direct-to-consumer (DTC) channels, specifically Amazon and eBay. However, they have started receiving bulk wholesale orders and have the potential to expand their business-to-business (B2B) sales. B2B sales currently account for a small percentage of their revenue but have shown growth potential. The company could also explore new sales channels such as Walmart, Target, and international platforms offered by Amazon.
The business has achieved strong key metrics, with double the sales growth projected for the current year compared to the previous year. They have more than doubled their profits year-on-year. The company has 20 Best Seller badges on Amazon, indicating high product demand and customer satisfaction. The average order value is $26 on Amazon and $17 on eBay. They have a positive Seller rating of 99% on Amazon.
The business has a diverse customer base that spans across all age groups. Their products cater to consumers who use health and beauty items on a daily basis. They have received positive feedback from customers, with a 99% positive Seller rating on Amazon. Customers appreciate fast deliveries and excellent customer service. The products are conveniently stored in Amazon’s warehouses and shipped using Fulfillment by Amazon.
BUSINESS MODEL & RESOURCES NEEDED
The company currently does not have any employees, but they work with a contractor who assists with inventory processing and eBay listings. The owners dedicate around 30 to 40 hours per week to operating the business. They handle customer service inquiries, which average around 10 per day during peak season.
THE INDUSTRY
The business operates in the health and beauty products industry, focusing on over-the-counter (OTC) products, haircare, and skincare verticals. They have established themselves as a leading player in this evergreen industry with strong industry relationships. The brand has tremendous growth opportunities, including expanding into new categories such as pet food/supplies, pesticides, toys, and grocery items. The industry is characterized by high demand and recurring profitability, with a wide customer base that spans across different age groups.
OPPORTUNITIES TO SCALE
The business has significant scale opportunities through product line expansion and category expansion. They already have 100+ new SKUs ready for onboarding, and their vendor relationships provide a steady supply of high-demand products. The company can also scale by expanding into new industries and product categories, leveraging their Amazon approval for added growth. Furthermore, they can explore additional sales channels like Walmart and Target, as well as international expansion. The recurring revenue of $2.6 million can be further driven higher with these scale opportunities.
Asking Price: $4,500,000
Gross Income: $4,396,740
Cash Flow: $1,161,898
Year Established: 2020
Employees: 2
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