Highly Profitable Ecommerce Business in the Health and Beauty Industry: Fragrances, Body Lotions, and More – 90% Sales on Amazon, Average Order Value of $50, Hazardous Storage Space Accessible
This eCommerce company is a seasoned retailer in the perfume and personal care industry, appealing to all ages, genders and demographics. This business operates primarily through Amazon, producing over $6.3 million in gross income with a $482,557 cash flow. With a stock inventory model, they maintain $1.8 million in inventory which typically increases annually to match sales
OPERATIONS
The company purchases perfumes and personal care products from a range of wholesalers. They store their products with 100% stock inventory models and ship 100-120 orders daily from either their facility or Amazon fulfillment centers.
The company purchases and acquires their inventory through wholesalers, storing their products with a 100% stock inventory model until shipping to customers. With hazardous materials stored in-house and Amazon warehouses, the company can handle 20% of orders through Amazon fulfillment centers.
MARKETING AND KEY METRICS
As an Amazon-focused business, 90% of the business’s sales are on Amazon, with the average AOV of $50. The company has never actively pursued any marketing endeavors; thus, the opportunities to grow are vast
Although Amazon favors most of the sales, the company can easily create a Shopify store to increase margins and promote marketing campaigns through search engine advertising and social media. Additional sales peaks occur around holidays such as Valentine’s Day, Mother’s Day, Father’s Day, Prime Day and the year-end holiday season
In 2022, the perfume market was valued at over $50.85 billion, projected to grow at a healthy rate. The exponential growth of personal grooming coupled with the rising demand of premium and exotic fragrances has fueled the industry. Key performance indicators include the amount of inventory, shipping days and operational costs
This company caters to all genders and ages across different demographics, appealing to everyone in perfumes and personal care to elevate their personal grooming. The wide array of products opens doors for new customers, and the robust assortment of fragrances creates loyal and repeat customers
BUSINESS MODEL & RESOURCES NEEDED
This company operates with four additional staff members that handle operational aspects like customer service and shipping orders to customers. The owner mainly focuses on ordering and listing products.
THE INDUSTRY
The perfume market is anticipated to thrive and continue growing. As one of the essential commodities in personal care, fragrances have elevated into a significant form of self-care and personal pride and confidence. The skincare category is also a lucrative industry due to its extensive coverage in beauty and personal care. As the company caters to all genders, ages and demographics, it has distinguished itself as a valuable player in the health and beauty retail industry
OPPORTUNITIES TO SCALE
Supplying efficient inventory management is an avenue for boosting sales, while expanding into the skincare category could open up a chance to cross-sell and upsell products, and initiate a subscription model. Additionally, the brand should explore new regions such as Brazil, Canada, and Mexico while starting Amazon Expansion initiatives. With a social media campaign, influencer relationships and affiliate marketing, the company can scale growth by pursuing selling through a brand website.
Asking Price: $1,206,000
Gross Income: $6,380,651
Cash Flow: $482,557
Year Established: 2012
Employees: 4
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