FDA-Approved Skincare Company with Multiple Brands and Amazon Sales
The target is a well-branded eCommerce retailer in the evergreen skin care sector, selling direct to customers by way of its organically-ranked Amazon FBA Seller Central Account and branded, fully integrated Shopify Websites. The company sells under 3 separate all-natural brands in the insect repellant and sunscreen sectors. All of its products are proprietary, FDA-approved formulations that are chemical free, environmentally safe and biodegradable. The Company has achieved very low overhead by primarily utilizing the Fulfilled by Amazon (FBA) model, as well as great margins thanks to a 44% profit margin and a $45 average ticket price. With impressive growth opportunities ahead, all tied up with a completely branded and trademarked product presentation, this is a high demand business that is ready for scale.
OPERATIONS
The company has dialed their focus into a well-executed lineup of 20 high-volume SKUs, with space available for additional SKUs not yet on offer from its existing supplier. Originally founded in 2004 and purchased by the current owners in 2015, this eCommerce Company is posting $791,000 in 2018 sales with earnings of $170,000. The company requires only 400 sq. ft. of storage space, since 80% of its sales are handled through Amazon’s FBA warehouses. This allows a new owner a great deal of flexibility from both a location and scale perspective. The company can be operated from any location, and by not having the overhead, capital expenditures or other headaches of a warehouse, the new owner can focus on growth.
The company mainly utilizes the Fulfilled by Amazon (FBA) model, allowing them to have low overhead and use Amazon’s warehouses for 80% of their sales. They only require 400 sq. ft. of storage space, providing flexibility and scalability for the business. By partnering with Amazon, they can focus on growth rather than managing their own warehouse and logistics.
MARKETING AND KEY METRICS
The company primarily utilizes its Amazon FBA Seller Central Account and branded Shopify websites for sales. It focuses on organic ranking and provides all-natural skincare products that are chemical-free, environmentally safe, and biodegradable. With a 44% profit margin and a $45 average ticket price, the business has great margins. They also have a completely branded and trademarked product presentation, positioning themselves well in the market.
The company primarily sells through its Amazon FBA Seller Central Account and branded Shopify websites. There is significant room for growth by expanding the company’s own eCommerce websites, developing a search engine marketing (SEM) plan, expanding product and category lines, and exploring international growth through Amazon’s FBA warehousing. Additionally, developing wholesale distribution, retail channels, and increasing social media engagement can further drive sales growth.
The key metrics for this business include its $791,000 in sales for 2018, $170,000 in earnings, 44% profit margin, and a $45 average ticket price. These metrics show the significant growth potential and success of the business.
The company targets customers who are looking for all-natural skincare products that are chemical-free, environmentally safe, and biodegradable. Their target audience includes individuals interested in skincare, outdoor enthusiasts, and eco-conscious consumers. With their FDA-approved and branded products, they attract customers seeking high-quality skincare solutions.
BUSINESS MODEL & RESOURCES NEEDED
The company currently has 3 employees, and their streamlined, low-maintenance model requires minimal time to run the business. This allows the owners to focus on growth and scaling the business.
THE INDUSTRY
The skincare industry is a lucrative and evergreen sector. The company operates in the all-natural skincare segment, specifically in the insect repellant and sunscreen sectors. Their FDA-approved, chemical-free, and environmentally safe formulations set them apart in the market. With a focus on organic ranking and a strong brand presence, they have positioned themselves well in the industry. Examples of other companies in the industry include natural skincare brands like Burt’s Bees and Honest Company.
OPPORTUNITIES TO SCALE
This business has numerous opportunities for scale. Some examples include expanding the company’s eCommerce websites, developing an SEM plan, expanding product and category lines, growing internationally through Amazon’s FBA warehouses, and developing wholesale distribution and a retail arm. The company’s strong brand presence and trademarked product line provide a solid foundation for scaling the business.
Asking Price: $575,000
Gross Income: $791,576
Cash Flow: $170,033
Year Established: 2004
Employees: 3
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