Website Closers® presents a business that’s growing quickly on Amazon, offering three separate storefronts and brands to market popular beauty care products that are attracting glowing reviews from their customer base. Beauty and make up products are a high-demand niche, and one that’s ideal for developing repeat customers. With more than 300 million customers worldwide, Amazon gives its sellers an unbeatable platform for finding buyers in their niche space, and it’s worth noting that this brand has seen its rising profits come entirely from organic Amazon sales with virtually no marketing efforts or ad spend, a testament to how desirable new cosmetic products are on this eCommerce giant’s platform.
That provides a buyer with an enormous scale opportunity simply by investing in PPC on Amazon, although this company has plenty of other exceptional growth opportunities. The global beauty and personal care products market is a phenomenal one, worth $482 billion in 2021 and projected to grow at a 7% rate through 2030. This growth is being driven by the fact that products created around skin care, color cosmetics, and hair care have become an integral part of daily grooming for women and men of all ages. The easy availability of these products through various sales channels, including popular eCommerce sites, has also contributed to the industry’s skyrocketing growth. Manufacturers of these products are well aware that if they create something that appeals to their target audience, those customers could easily become lifetime buyers.
This company understood that and set out to create three upscale Amazon businesses offering high-end, premium and luxury beauty items such as mascara, eyeliner, and lipstick. In total the company currently is laser focused on 11 parent SKUs across 3 brands, but that masks the fact that their product line could easily expand very quickly.
SKU Expansion. The company was launched after contracting with a single trusted and reliable supplier, at low pricing that has enabled the company to maintain high retail profit margins. While the company markets 11 SKUs today, the supplier manufactures more than 1,000+ products and designs – a lot to choose from. All are available to be ordered for private label sales in the future. This company’s catalog could easily triple which would be an enormous growth opportunity for them.
The company owns three private label brands that they created and designed, and the products they source are sold under their brand names. So far, sales have remained steady for all 11 SKUs, without a single product breaking out as a best seller or dominating most sales, thus reducing concentration risk or the risk of having to manage too many SKUs at one time. Each item was carefully chosen because it had proven to be a high-volume sales driver used by women every day. The seller is excited to teach a buyer what metrics are used to identify products that will do well – this know-how alone will be a valuable intangible picked up in this acquisition.
Their customer base loves these products. Operating through Amazon’s Seller Central marketplace as a 3rd Party Seller, the company understands that women are now gravitating to Amazon to buy their beauty products. The company’s carefully chosen SKUs have encouraged repeat purchases, especially given the easy ordering and re-ordering process through Amaazon.com and its Mobile App. If a customer likes one of their products, they likely will come back for other make up items, so upsells happen entirely through organic means.
Their customer base today is women between the ages of 18 and 65 with average incomes. Their Average Order Value of $19.97 has made their products affordable for all customers, including young buyers, and the company now sells an average of 2,000+ units monthly, with sales peaking around Amazon Prime month and the holidays, when their SKUs become popular gift-giving items. The same is true around Valentine’s Day. Sales remain vibrant throughout the year since women buy beauty and make up products all year long.
Fast shipping has become another key component of this business’ success. Their supplier ships directly to Fulfillment By Amazon (FBA) and no warehouse is needed to stock inventory. The current ownership has already purchased enough inventory for the next year and a half of sales, with the expectation that their SKUs could possibly sell out even faster than that. Between the popularity of their SKUs and their customer service, the company has a 100% positive seller rating on Amazon.
Marketing has been largely organic so far. With the use of popular keywords related to beauty products being effectively used in each platform’s product descriptions, the brand has relied entirely on organic Amazon sales so far. Running PPC ads on Amazon would provide a major boost to this company’s profitability, but it’s not the only option.
Sales are now conducted entirely on Amazon, and the company could launch Shopify sites for each of their three brands to diversify their sales channels. Putting listings on eCommerce websites such as Walmart and Etsy would do the same.
The company sells entirely in the U.S. today and could use Amazon’s overseas platforms to extend sales into Canada, Europe, Japan, and Australia.
Another key option would be to turn on Amazon’s Subscribe & Save program to boost their Repeat Customer Rate through monthly subscribers.
The current owner works just 3-5 hours per week, and often much less, running this company, which does not need employees, an office or a warehouse. The owner is available to provide full training and support to the new owner to ensure a smooth and successful transition.
The brand also has lots of room to grow, so contact Website Closers today so our brokers can outline the real beauty of owning this business.
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