Website Closers® presents a seasoned eCommerce Business that has established itself firmly on Amazon, Walmart, and eBay. Based in the profitable Beauty and Personal Care niche, they have a decade’s worth of experience selling brand-name fragrances, body lotions, and gift sets. They’ve accumulated over 1,000 SKUs in their product roster and have an Average Order Value of $50. The company has been growing nicely over the last decade with stable profit over $650,000 over the last 2 years.
In 2020, the global Beauty and Personal Care market was valued at $422.72 billion, and it’s expected to grow by a CAGR of 5.0% throughout the next 10 years. Beauty products are and will continue to be, incredibly popular across a broad range of demographics. From women looking to express themselves through the use of makeup, to men in need of a nice cologne to wear before a date, Beauty and Personal Care products can help buyers feel confident in their own skin. Additionally, they’re in consistent demand by the young and old alike, meaning that there’s little risk of the market dying down anytime soon.
As the company has cemented themselves as a provider in the industry, they are in the peak position to scale. They have already increased their inventory as they grow, and they operate largely out of their 2,000-square-foot warehouse, shipping roughly 100 to 150 orders per day. The purchase of the company includes the $1.5 million in inventory that they have to their name, giving the buyer a fantastic building-off point upon transition. Additionally, 20% of the company’s orders are managed through Fulfilled by Amazon, and they are one of the few sellers that has access to Amazon’s Hazardous Storage Space. This storage space is invaluable for sellers in their niche, giving them an edge over many of their competitors.
Despite their substantial size, the company currently has no marketing plan, which poses a fantastic scale opportunity for the buyer. By creating an SEO plan, the company can use cleverly researched keywords in their product titles and descriptions to appear more frequently in relevant search results. They could also invest in PPC on Amazon, and even Google, in order to better introduce the brand to more potential buyers. Improved marketing would make it much easier to become a more prominent name on the platform, raising sales and building a stronger consumer base.
Another great scale opportunity, and one that the company has already started the process of pursuing, is international expansion. They have begun to branch out into Amazon Brazil, Amazon Canada, and Amazon Mexico, which will all be excellent channels through which the business can thrive. Selling globally can drastically increase profit by letting the company access a much larger consumer base, and by diversifying their sales channels, allowing them to enjoy multiple streams of income from around the world.
The company could also expand onto new eCommerce websites, or even establish their own storefront on the Shopify platform. The creation of their own site would make it possible for them to set themselves apart as their own independent brand, and give them another sales channel to supplement the rest. With the right marketing plan, a company website could thrive, and even attract organic traffic through a makeup related blog and newsletter.
There are several other ways that a buyer could scale the business. For instance, while they have already been working to build their inventory as they grow, adding more would still be incredibly helpful. At the moment, the company tends to quickly run out of their good inventory, and purchasing more in advance would let them better stay on top of consumer demand. They could also expand their product line into different categories, such as skincare, to add to their extensive SKU list and give them an even stronger appeal to customers in their niche.
This acquisition is perfect for a buyer looking for a trusted veteran in a highly profitable field. With proper advertising, the addition of new stock and products, and continued expansion, the company could soar in size.
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