A Subscription-Based Ecommerce Brand: Accessories, Apparel, Essential Oils, Health Products and More – 80% of Sales from Subscriptions, 4,500 Active Members
This is a subscription-based eCommerce brand that specializes in selling accessories, apparel, essential oils, and health products. The company offers exclusive deals, rewards, and benefits to its monthly subscribers. With over 4,500 active members, the business has seen significant growth and success in the Bohemian and Wellness markets.
OPERATIONS
The company operates primarily through its online platform, hosting a diverse selection of 600 active SKUs. It attracts new subscribers through its high-quality products, discounted prices, and additional benefits such as guided meditation videos and eBooks. The company has a strong focus on customer satisfaction and retention, with a Return Order Rate of 14% and a Customer Lifetime Value of $75.
The company utilizes a 3rd party supply chain agency for order fulfillment and inventory management. This allows the current owner to spend only about 20 hours per week managing operations. The company ships out an average of 30 to 50 orders per day.
MARKETING AND KEY METRICS
The business uses a combination of paid advertising on social media platforms like Facebook and Instagram, along with email and SMS marketing to drive sales. It has a strong organic presence on social media, with over 17,700 followers on Instagram and 168,000 followers on Facebook. The company also utilizes SEO tactics and runs a blog centered around positivity, mental health, and mindfulness to attract organic traffic.
The company’s primary sales channel is its website, where customers can subscribe and make purchases. There is potential for growth by expanding onto other eCommerce storefronts and exploring new product categories and wellness content that align with the brand’s target audience.
Key metrics for this business include the number of new subscribers per month, the Return Order Rate, the Customer Lifetime Value, and the projected Year-Over-Year Revenue Growth Rate. These metrics highlight the success and growth potential of the subscription-based model and the loyalty of the customer base.
The customer base of this business consists of individuals interested in bohemian and wellness products. The subscription-based model appeals to customers seeking exclusive deals, rewards, and benefits, and the company has built a loyal customer base with over 4,500 active members.
BUSINESS MODEL & RESOURCES NEEDED
The current owner manages most of the operations, including product development and website optimization. However, additional staff such as a customer service manager and an operations virtual assistant are employed to support daily operations.
THE INDUSTRY
This business operates in the eCommerce industry, specifically in the subscription-based eCommerce sector. The industry is characterized by businesses that offer products or services through online platforms and generate revenue through subscription fees. Examples of other subscription-based eCommerce brands include Birchbox, Dollar Shave Club, and Blue Apron.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this business. It can expand its reach by leveraging popular social media platforms like TikTok and YouTube, potentially reaching a larger audience and attracting more subscribers. The company can also consider partnerships with social media influencers to increase brand awareness and member recruitment. Additionally, exploring new product categories and expanding onto other eCommerce platforms can contribute to further growth and profitability.
Asking Price: $890,000
Gross Income: $791,950
Cash Flow: $261,360
Year Established: 2019
Employees: 2
- Two Highly Profitable Sports & Fitness Ecommerce Brands For Sale - July 8, 2023
- Branded Ecommerce Company for Baking Goods - July 8, 2023
- Trendy Baby Fashion Retailer Ready to Launch - July 8, 2023
