Organic Cotton Textiles Ecommerce Brand with 25% Repeat Order Rate and 9 Years in Business – Exclusive Designs & $102 AOV
This eCommerce brand specializes in GOTS Certified Organic Cotton Textiles within the Women’s Fashion & Travel Accessories verticals. It offers exclusive, branded designs that make women feel chic, sophisticated, and comfortable wherever life takes them.
OPERATIONS
The company has a robust direct-to-consumer and business-to-business sales platform with excellent margins. It has three revenue streams: eCommerce, wholesale, and key account collaborations. The business utilizes a 100% stock inventory model and maintains a 1,000-square-foot warehouse for inventory storage.
The business imports and sells its textiles directly through the eCommerce site and to strategic wholesale partners throughout the US. It maintains inventory through quarterly major purchase orders and occasional additional orders based on sales forecasts.
MARKETING AND KEY METRICS
The company’s digital marketing strategy primarily involves advertising on Facebook, Instagram, and Google. Additional marketing tactics include video marketing, seasonal sales, ‘Buy More, Save More’ offers, and post-purchase upsells. It achieves a 300 to 500 percent ROAS and drives 58,000 monthly visitors to the website.
The eCommerce division is the fastest-growing with revenue increasing from under $25,000 in 2019 to nearly $2.3 million in 2022. The wholesale division has established relationships with over 75 independent and specialty stores and continues to grow. Strategic collaborations with key accounts have proven profitable and have significantly increased brand exposure.
Key metrics for the business include a 25% repeat order rate, a $102 average order value (AOV), and a customer lifetime value of $112. Sales are steady throughout the year, with peaks during the holiday season and increased summer sales due to travel.
The typical customer is a female between the ages of 35 and 54, ranging from urban to suburban. She enjoys dining out, traveling, and is interested in fashion trends, beauty, and wellness. She is a frequent online shopper, uses a mobile phone for purchases, regularly visits Facebook, and has a lifetime value of $112.
BUSINESS MODEL & RESOURCES NEEDED
The business is operated by two directors who oversee company planning, marketing, and operations. There is a full-time operations manager responsible for manufacturing, quality control, and wholesale distribution. Additionally, there is a part-time customer service employee.
THE INDUSTRY
The company operates in the organic cotton textiles industry. The demand for socially responsible and eco-friendly products has led to a rising trend in organic cotton production. Consumers are increasingly seeking brands that address social issues, and the company’s focus on organic cotton aligns with this trend. The brand has established itself as a leader in the industry and has collaborations with furniture and home décor stores, shopping malls, and baby and children’s brands.
OPPORTUNITIES TO SCALE
There are unlimited scale opportunities for an ambitious buyer. The company has excellent systems, relationships, financials, and a strong customer base. Expansion possibilities include further expanding the eCommerce platform, increasing wholesale partnerships, exploring international markets, and expanding the product line.
Asking Price: $3,300,000
Gross Income: $2,866,439
Cash Flow: $606,732
Year Established: 2013
Employees: 2
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