Website Closers® presents an Amazon eCommerce Brand that is focused in the Apparel Category. They have developed a system for finding just the right mix of products that match what Amazon buyers are searching for.
The company has developed successful partnerships with industry-leading manufacturers and distributors, offering customers a very diverse selection of apparel products. Offering both private-label products and 3rd party brand resells, the company has continued to grow thanks to their partnerships with more than 40 top brands and American suppliers. With the ability to deliver high-quality apparel products at an affordable and attractive price range, this 10-year-old business is dressed for a very successful future.
The fashion industry remains one that’s ever-changing, as manufacturers constantly seek to capture the public’s attention with new, stylish, and bold outfits for both men and women, and people of all ages. Fashion is actually the largest B2C eCommerce market segment, valued at $709.78 billion, and projected to grow 12.2% to reach $829 billion by 2024.
Customers have become more comfortable than ever purchasing apparel online, and that includes doing their clothes shopping on Amazon. In fact, Amazon has become the nation’s leading apparel retailer, topping $30 billion in sales, with studies indicating that 7 out of every 10 shoppers now begin their search on Amazon.
This brand has wisely used Amazon to get their large product assortment before the eCommerce titan’s millions of faithful users while providing strong customer service and attracting glowing reviews. The company followed a carefully outlined strategy to get to this point, as a review of their history will demonstrate.
Strong Supplier Base. In the past decade, this company has grown considerably, and now provides a catalog of a whopping 150,000+ SKUs at an Average Order Value of $35. This has proven to be a highly successful growth strategy. The company has a huge selection of products that range from white-label to mid-range items to high-end brands. Outerwear, everyday essentials, and everything in between are included in their catalog, and their own brand-new products have generated rave reviews for their quality craftsmanship and design.
Their goal from the start has been to provide families and individuals with quality apparel products at a price the customer will love as much as the clothing itself, and as more people discover them, their sales have continued to skyrocket.
Most of their suppliers are in the U.S., and the company has very strong relationships with each one. Because these suppliers are designing the products for them, the company hasn’t needed to focus on product development. This relationship also enables them to provide customers with new unique designs every year that competitors simply don’t have.
About 65% of their orders are drop shipped from the manufacturers, while the brand is shipping 300+ products daily through Fulfillment By Amazon. With orders remaining steady and no seasonal factors impacting their sales, the company is maintaining a high inventory value of around $1.4 million.
Most of their orders are sent with their private label tags, and the packaging is handled by the manufacturer.
Amazon Focused. Amazon has turned out to be the ideal platform for this brand. Operating on Seller Central, Amazon now manages 90% of their sales, with the balance coming from their platform on Walmart.
In addition to taking advantage of Fulfillment By Amazon for shipping and customer service, their marketing focuses on using PPC ads on the site to help introduce their products to an ever-wider audience of apparel shoppers.
Amazon has also enabled this company to be highly automated, so turnkey that the current ownership devotes just 10 hours per week or less to the company. An experienced team is in place to handle all daily operations, including two full-time warehouse employees, a full-time COO manager, and a full-time manager in charge of private labeling and product development.
Growth Opportunities. Growth opportunities abound for this brand. Having enjoyed success on both Amazon and Walmart, they could expand sales onto additional popular sales platforms such as eBay, introducing their products to the millions using those sites.
The company could also go live on a second Amazon account, particularly if they expand their SKUs into new categories and launch additional products. Amazon provides the company with another key advantage: the ability to expand internationally where they use Amazon’s foreign platforms in Canada, the UK, the European Union countries, and Australia. That would represent a massive growth opportunity for them.
The company could put a renewed focus on its Shopify site and direct more sales there, particularly if they use the site to shine a spotlight on their own unique branded products and SKUs, giving more people a better sense of how their own apparel items stand out.
Digital marketing offers plenty of growth options for this brand. That includes an expanding social media marketing campaign and building up their email database for newsletters that promote new products and boost upsells and cross-sells. The company’s Repeat Customer Rate has just started to rise and email marketing is ideal for increasing those percentages.
The company could also extend sales to the wholesale market and popular retail clothing stores.
There’s no question that apparel sales will remain vibrant and healthy in the coming years, and for a brand like this one – which has a strong sales platform, a growing customer base, and excellent growth prospects – this is a terrific opportunity for a buyer to secure a firm position in this highly profitable industry.
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