Thriving 10-Year Online Apparel Retailer with 250k Products and Multiple In-House Brands
A 10-year-old eCommerce retailer that offers a wide variety of apparel items, including outerwear, baby clothing, men’s and women’s clothing and casual wear, and accessories. The business has developed multiple in-house brands that cater to different industry verticals and has a customer base that relies on their expertise in the market. The business has automated day-to-day operations to make it easy for a new owner to integrate into the system, and product sourcing is handled by various suppliers, both locally and abroad.
OPERATIONS
The business has managed to make daily operations extremely efficient, with purchasing, distribution, and most tasks managed by a full-time team of twelve. Shipping services include both custom and non-custom products shipped by suppliers free of charge. They sell using Amazon FBA, which is utilized for 80% of goods sold from warehouse stock. Amazon sales account for 90% of their revenue.
The business sources products from various suppliers, both locally and abroad. Most suppliers are in the USA and offer several benefits, including low or no minimums, great margins, no risk of defective products, on-demand shipping direct to FBA at no additional cost, and no charge for warehouse storage.
MARKETING AND KEY METRICS
The business has not focused on using influencer marketing or paid advertising on social media platforms. However, this presents an opportunity for a new owner to implement and leverage massive ROI potential.
New ownership can expand the company’s sales channels to secondary eCommerce platforms to increase sales. Additional opportunities include creating brand loyalty and recognition with targeted email campaigns and additional sponsored ads.
The business has a vast range of over 250,000 SKUs, including seasonal products like winter outerwear that are the best selling. Custom products offer an excellent average order value that has not yet been marketed outside of Amazon. Amazon FBA is utilized for 80% of their goods sold, and Amazon sales account for 90% of their annual revenue.
The customer base relies on the expertise in the region and has a vast range of over 250,000 SKUs, including seasonal products like winter outerwear that are the best-selling.
BUSINESS MODEL & RESOURCES NEEDED
The business employs a highly efficient full-time team of twelve that handles most tasks, including warehousing, inventory management, product development, financials, and customer support. The existing team helps make the acquisition and period after a seamless transition.
THE INDUSTRY
The USD$205 billion US eCommerce Fashion apparel, footwear, and accessories revenue are expected to achieve significant growth, with a forecasted US$300 billion in sales by 2025. With the convenience of online retailers growing, eCommerce across North America, and, by extension, the fashion industry within the sector is experiencing steady growth. Customer base expansion opportunities arise from expanding Amazon sales worldwide, targeting influencers, and adding new and popular SKUs.
OPPORTUNITIES TO SCALE
One of the most significant expansion opportunities is selling on secondary eCommerce platforms to introduce their line of products to the millions of existing users. Additionally, the company has not yet tapped into influencer marketing and paid advertising on social media platforms, both of which have an excellent ROI with focused campaigns. Finally, the business has a custom range with excellent average order value that hasn’t been marketed outside of Amazon.
Asking Price: $6,000,000
Gross Income: $22,521,985
Cash Flow: $2,446,277
Year Established: 2012
Employees: 13
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