Building an Amazon Empire: An Ecommerce Brand in the Health & Beauty Vertical

A rare hybrid company specializing in the beauty and personal care industry. They operate as both an agency and eCommerce business, acting as the exclusive Amazon retailer to beauty supply brands that don’t sell on Amazon or that are seeking to improve their presence on Amazon.

OPERATIONS

High growth company has already acquired exclusive contracts with 9 brands and has 3 more signed, and in the onboarding process. The structure of the company allows it to be high-margin, while still remaining incredibly lean and efficient. They specialize in identifying the most relevant and trending products to sell, allowing them to better sign on successful brands.

All of their current product suppliers are based within the US, which makes for incredibly smooth partnerships overall. Their contracts with their clients ensure that no other resellers are allowed to supply the same products on Amazon, giving them absolute exclusivity, and excellent security for the business and its profit margins.

MARKETING AND KEY METRICS

The company offers its clients the ability to outsource all of the heavy listing and technical know-how required to sell on Amazon FBA, freeing them to focus on increasing their product catalog and enhancing the quality of their offering which benefits both parties.

High 27% Repeat Orders Rate, a $500,000 Average Contact Value since inception, and a highly optimized marketing campaign that has generated over $5,000,000 in their third year in business.

Exclusive Amazon retailer to beauty supply brands that don’t sell on Amazon or that are seeking to improve their presence on Amazon.

BUSINESS MODEL & RESOURCES NEEDED

Their arrangement with clients is much more of a business partnership as it is a B2B service, which helps build strong rapport for long-lasting, symbiotic business relationships.

THE INDUSTRY

The global beauty and personal care market itself is incredibly lucrative, having been worth $422.72 billion in 2020, and with projections to grow at a CAGR of 4.82% to hit $558.12 billion by 2026. Makeup and cosmetics have acquired a share of over 60% in the market, making for a valuable niche for companies to fill.

OPPORTUNITIES TO SCALE

Additional clients means more SKUs in their product line, as well as a broader range in of items for the business to offer to buyers. The company could grow their business by offering Subscribe & Save for their products and optimizing their advertising spend.

Asking Price: $3,995,000
Gross Income: $5,563,970
Cash Flow: $970,592
Year Established: 2019
Employees: 2

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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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