Profitable Streetwear Ecommerce Retailer with 300% Year-over-Year Sales Growth
This eCommerce retailer is a highly profitable and fast-growing fashion brand that specializes in affordable and trendy streetwear apparel. With a remarkable 300% sales growth in the past year, the company has a loyal customer base and a strong online following with over 330,000 followers on social media. The business operates entirely online and serves international audiences in multiple countries.
OPERATIONS
The company operates on a drop ship model, which allows for scalable growth with minimal supply chain oversight and costs. The current owner dedicates an average of 28 to 35 hours a week to manage the Instagram page, customer concerns, online catalog updates, and product launches. There are currently no full-time employees.
The business operates on a drop ship model, minimizing supply chain oversight and costs. There is potential to develop an in-house brand and offer branded apparel and accessories.
MARKETING AND KEY METRICS
The company utilizes impactful marketing initiatives such as organic posting and paid advertising on Instagram and Facebook, as well as Search and Shopping campaigns through Google Ads. With a return on advertising spend of 1.6-2x, there are opportunities to further strengthen the brand’s outreach through TikTok marketing, influencer partnerships, SEO improvements, and better utilization of the company’s email contacts.
The business currently sells its products exclusively through its branded website. There is potential for growth by expanding onto other selling platforms, such as Amazon.com, and partnering with other online retailers like Target.com and Walmart.com.
Key metrics for this business include the 300% YOY sales growth, a recurring customer rate of 11%, a database of over 58,000 contacts, and a social media following of 330,000+.
The customer base for this business primarily consists of young teens to young adults aged 13-34 who are interested in trendy streetwear fashion. The company’s loyal and active digital community, consisting of over 58,000 contacts and a social media following of 330,000+, demonstrates the appeal of its products to this target demographic.
BUSINESS MODEL & RESOURCES NEEDED
The current owner manages the day-to-day operations of the business, including social media management, customer support, and product updates. Additional hiring of an advertising and social media manager, as well as an administrative assistant, could help minimize the owner’s workload.
THE INDUSTRY
The fashion industry is a highly competitive market, but this niche streetwear retailer has found success by targeting young teens to young adults aged 13-34. With its trendy and affordable offerings, the company has carved out a solid foothold within the streetwear and accessories vertical. The industry is constantly evolving, with new fashion trends and styles emerging regularly. Examples of successful companies in the fashion industry include Supreme, Off-White, and Fashion Nova.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this business, including expanding selling platforms, extending social outreach on platforms like TikTok, forming influencer partnerships, improving SEO, utilizing the database of email contacts, and expanding the product line. The addition of an Amazon.com account and partnerships with Target.com and Walmart.com are also potential avenues for growth.
Asking Price: $600,000
Gross Income: $568,798
Cash Flow: $201,446
Year Established: 2017
Employees: 1
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