SBA Pre-Qualified Ecommerce Business: Cosmetics & Beauty Products, 426% Growth & 72% Margins
This eCommerce business specializes in selling cosmetic products direct-to-consumer through its website. With a 426% growth in repeat orders and 72% profit margins, it has built a customer base of over 326,000. The company offers a lightweight and long-lasting foundation makeup that helps eliminate acne, blemishes, wrinkles, and age spots. The cosmetics market is valued at $380.2 billion globally and is projected to reach $463.5 billion by 2027. This business has automated operations, only requiring 10 hours of work per week. It has two full-time employees, a customer support manager, and an overseas agent for order fulfillment. The company uses visual marketing campaigns, Facebook ads, PPC ads, and influencer campaigns to acquire and retain customers. There are opportunities for sales channel diversification and expansion into new social media platforms.
OPERATIONS
The business has highly automated operations that require only 10 hours of work per week. Tasks include managing Facebook ads and responding to customer service contacts. The company has two full-time employees and outsources accounting and email marketing. Order fulfillment is handled by an overseas agent, and inventory management is based on demand.
The company purchases makeup foundation directly from the manufacturer and maintains inventory in a warehouse. An overseas agent handles order fulfillment and inventory management based on demand.
MARKETING AND KEY METRICS
The company uses visual marketing campaigns through videos, images, and application instructions. It advertises on Facebook and runs PPC ads to acquire new customers. The company has a significant following on Facebook and Instagram. Their website is optimized for SEO and receives over 300,000 monthly visitors. Sales channel diversification through partnerships with eCommerce giants and new social media marketing campaigns can further boost sales.
The business primarily sells its products through its website. Sales can be boosted by working with eCommerce giants like Amazon and Walmart. Launching new PPC ads on Facebook and Google, expanding presence on other social media sites, and implementing an assertive email marketing campaign can drive further growth.
Key metrics for this business include the growth rate in repeat orders (426%), profit margins (72%), customer base (over 326,000), monthly website visitors (over 300,000), and social media followers (36,000+ on Facebook and 6,400 on Instagram).
The customer base for this business primarily consists of middle-aged women who regularly use makeup and foundation. Customers repurchase the product every two months, resulting in a growing amount of repeat business. The brand has built brand loyalty through glowing 5-Star reviews and word-of-mouth recommendations.
BUSINESS MODEL & RESOURCES NEEDED
The business has two full-time employees: a customer support manager and an overseas agent. It also employs a part-time video editor and part-time public relations manager. Accounting and email marketing are outsourced to agencies.
THE INDUSTRY
The cosmetics industry is a highly lucrative market, with the U.S. representing the most valuable beauty and personal care market, generating $89.5 billion in sales in 2018. Globally, the cosmetics market is valued at $380.2 billion and is projected to reach $463.5 billion by 2027. The industry includes skincare, makeup, and other beauty products. Manufacturers are launching new products with natural ingredients and targeting a growing demographic of men. The use of cosmetics has become an indispensable feature of daily lifestyle.
OPPORTUNITIES TO SCALE
Scale opportunities for this business include sales channel diversification through partnerships with eCommerce giants, expanding influencer and social media marketing campaigns, implementing an assertive email marketing strategy, and launching a blog on the website to expand the customer base.
Asking Price: $3,950,000
Gross Income: $6,978,238
Cash Flow: $1,638,220
Year Established: 2019
Employees: 7
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