Grow Your Skincare Brand with DTC and B2B Sales Channels, High Repeat Order Rate, and Established Influencer Network
This Health & Wellness Skincare Brand has evolved into a successful eCommerce company that sells skincare, bath and body items, personal wellness tools, and accessories. Their products are purchased by more than four million customers worldwide. They have a thriving B2B business that now represents 50% of their annual revenue. Their smart decisions since the company’s launch in 2015 have helped them scale and become a true brand.
OPERATIONS
The company has three core business units: their Amazon marketplace (50% of sales), DTC sales (10% of overall sales), and their B2B customers (45% of sales). Their B2B sales are only getting stronger. They have a growing presence in multiple markets and enjoy big upsells, with a Repeat Customer Rate of 31%. They have four employees, the head of sales, Amazon account manager, operations manager, and operations assistant, who manage all daily tasks.
The company sources its products from manufacturing partners, and all products are sold under their own trademarked brand name. Products are shipped through Fulfillment By Amazon and directly from the manufacturer for B2B customers. Wholesale orders are not frequent, but they are large, and the company has 15 wholesale clients.
MARKETING AND KEY METRICS
This Beauty Brand successfully uses social media platforms like Instagram and Pinterest to attract customers. They have nearly 100,000 followers on Instagram and 81,000+ monthly views on Pinterest. They run PPC ads on Amazon and use SMS text messaging to engage with their audience. An email database of 85,000+ subscribers gives the brand a strong marketing tool, and today the company receives 100,000+ visitors on their website.
The company operates in DTC and B2B sales channels, both of which are growing. Their B2B sales are only getting stronger. They aim to boost DTC sales numbers by implementing an advertising strategy across all social platforms to retarget and attract new buyers.
Repeat Customer Rate: 31%; Annual Revenue: $4,482,715; Employees: 4
The company’s DTC customers are women between the ages of 25 and 45 who enjoy trying new brands and spend between $40-$60 per order. They also have B2B beauty box clients who make a single yearly purchase of anywhere from 100,000 to 2 million units.
BUSINESS MODEL & RESOURCES NEEDED
The company has four employees: the head of sales, Amazon account manager, operations manager, and operations assistant. There is potential for growth in this area.
THE INDUSTRY
The Health & Wellness industry is booming as consumers demonstrate high demand for products designed to improve their health, fitness, nutrition, appearance, sleep, and mindfulness. The fast-growing global wellness industry is valued at $1.5 trillion, with annual growth of up to 10%. Examples of brands operating in this industry include Huda Beauty, Glossier, and The Body Shop.
OPPORTUNITIES TO SCALE
This Health & Wellness Skincare Brand can grow by expanding their product line, reaching new markets, and scaling their B2B sales channel. Their wholesale orders are not frequent, but they are large. Four to eight wholesale orders a year can easily translate into $3 million in revenue, and the company has unlimited ability to keep growing this channel.
Asking Price: $2,700,000
Gross Income: $4,482,715
Cash Flow: $769,326
Year Established: 2015
Employees: 4
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