Website Closers® presents a rare hybrid company specializing in the beauty and personal care industry. They operate as both an agency and eCommerce business, acting as the exclusive Amazon retailer to beauty supply brands that don’t sell on Amazon or that are seeking to improve their presence on Amazon. This high growth company has already acquired exclusive contracts with 9 brands and has 3 more signed, and in the onboarding process. They have a high 27% Repeat Orders Rate, a $500,000 Average Contact Value since inception, and a highly optimized marketing campaign that has generated over $5,000,000 in their third year in business.
The structure of the company allows it to be high-margin, while still remaining incredibly lean and efficient. They specialize in identifying the most relevant and trending products to sell, allowing them to better sign on successful brands. All of their current product suppliers are based within the US, making for incredibly smooth partnerships overall.
Their contracts with their clients ensure that no other resellers are allowed to supply the same products on Amazon, giving them absolute exclusivity, and excellent security for the business and its profit margins.
In exchange for these exclusive rights, the company handles the optimization of search ranking, manages their product pages, sources professional product images, and polishes the listings to make them as profitable as possible. Each contract is annual, and automatically renewed if financial goals are met. Other benefits the company offers its clients include the ability to outsource all of the heavy listing and technical know-how required to sell on Amazon FBA – By doing this, brands are able to focus on increasing their product catalog and enhancing the quality of their offering which benefits both parties tremendously.
Much of the success of this business is due to the quasi-partnership structure established with each client. The arrangement with clients is much more of a business partnership as it is a B2B service, which helps build strong rapport for long-lasting, symbiotic business relationships.
They have retained an overwhelming majority of their clients since they signed on, bringing the number of SKUs that they sell through their Amazon account to an impressive 200.
The global beauty and personal care market itself is incredibly lucrative, having been worth $422.72 billion in 2020, and with projections to grow at a CAGR of 4.82% to hit $558.12 billion by 2026. Makeup and cosmetics, being widely relied on by customers to boost their self-confidence and express themselves, have acquired a share of over 60% in the market, making for a valuable niche for companies to fill.
The company itself is perfect for any buyer looking for a hands-off opportunity that consistently generates a high profit. Their team consists of the owner and two full-time employees, the latter of which are an account manager and a skilled product page optimizer.
Despite the size of the company, the owner is needed only about 3 hours per week to manage operations, with their daily tasks consisting of handling any issues that come up with the employees and supporting the account manager in closing larger or complex deals.
There is a wealth of scale potential that a new owner can quickly take advantage of. For instance, continuing what the company already does and growing the client base will create steady growth. Additional clients means more SKUs in their product line, as well as a broader range in of items for the business to offer to buyers.
The company’s business model lends itself well to variety, as it can be effectively replicated to branch out into new verticals, such as food, vitamins, or hygiene products. Adding an experienced business development manager would make this process much easier on the buyer, as would a general fine-tuning of their inventory management and oversight. Building up and improving upon the business would make it easier to pursue international expansion, as well. The UK, Singapore, and Brazil markets are all highly promising, and would be able to exponentially scale the company’s profits.
Other ways that they could grow their business would be to offer Subscribe & Save for their products, and optimize their advertising spend. The company already has a fantastic marketing campaign for their SKUs and clients, utilizing search keywords, Amazon PPC, and organic traffic, and investing more money into their ads would let them grow at an even stronger rate.
This hybrid business model between agency and eCommerce business is perfectly positioned to scale very well in the right hands. The current owner is willing to stay on board for a consultation period to make the transition easier, and their impressive organic ranking has made them a well-respected retailer for their clients. If you would like to hear more about this acquisition, then contact Website Closers to learn more today.
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