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B2B eCommerce Beauty Brand – in Business for 27 Years – Supplier of Commodities & Raw Materials for the Beauty & Cosmetics Industry – 54% Repeat Customer Rate

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Website Closers® presents an eCommerce store that has spent nearly 3 decades putting on an attractive face for owners of beauty companies eager to enjoy the benefits of their cosmetics, dyes, oils and waxes. Longevity has given this brand some spectacular benefits, including excellent relationships with US-based distribution companies within the cosmetics industry, a rapidly expanding customer base, and an astonishing 5,100+ SKUs for buyers to pick from. That’s an impressive track record for any brand, and this one has enhanced its profitability by shifting from DTC and retail sales to a growing wholesale line with their Partnership Program, which provides healthy discounts to wholesalers. With a growing presence on Amazon and the ability to continue expanding into different subcategories of the cosmetics industry, this Beauty Brand has enormous potential to build on its past success to considerably higher levels of profitability. The industry they operate in is certainly one of our most lucrative.

The durability of this industry is unquestioned. Globally, the Cosmetics Industry is projected to reach $412 Billion by 2024, fueled in part by skyrocketing demand from millennials interested in beauty looks and proper care of their face and hair. This brand understood the evergreen appeal of this industry, but also how popular these products are when they become available through eCommerce. Of the 27 years this company has been in business, they have been serving customers online for 25 years. This company is a clear success story that has a lot to teach others about shrewd business tactics.

The company sells high demand commodities. This company set out in 1995 to become a top supplier of raw materials for a thriving industry, the indie beauty cosmetics market. They sell a host of commodities that include waxes, oils and pigments, cosmetic containers such as lip gloss tubes and nail polish bottles, and tools such as scales and mixers – everything needed to grow and prosper as a small beauty brand. In fact, the company goes a step further and markets educational information on starting and running an indie beauty brand.

The company manufacturers some of their materials in house, including some liquid pigments and cosmetic bases. A majority of what they sell is under their own brand name, and the number of products they offer continues to grow. There are more than 1,000+ items for sale, and each item has different pack sizes which raises the number of SKUs to nearly 5,200.

Their customer base is diverse and loyal. New indie beauty startups have been a mainstay of their customer base from the start. These clients are often young (pre-teens to 35 years old), are ordering monthly and spending an average of $60 per order, often for a year or longer. The brand also does exceptionally well with established indie brands. Their Partners program now has 800 registered members who spend more than $3k per year, many of them women who are selling products out of their home or distributors who purchase their products and sell to other retailers.

Their customer base keeps expanding. From makeup artists to crafters and others who make gifts for family and friends. These customers typically buy 2-3 times a year. In fact, their SKUs are so popular that the brand’s Repeat Customer Rate was 54% in December, and sales have been soaring on a modest Average Order Value of $60.

While sales remain vibrant throughout the year, sales increase in January and February as customers restock on items following the busy Christmas season, and then again in September and October as they begin stocking up for holiday sales.

To date, the company has not invested much in digital marketing and has relied far more on word-of-mouth referrals, which has worked quite well. Through longevity, word of mouth and some engagement in social media, the company has obtained 17,000+ Instagram followers and an additional 10,000+ on Facebook. The brand recently started engaging in social media on a regular basis, and their posts are used for promotion of their products, but despite almost entirely organic growth, the company now averages 80,000+ online sessions each month with 63,000+ unique visitors over the last year.

Investing in a more targeted marketing and social media plan would be a game changer for the brand. Additional ways this enterprise could drive sales include taking full advantage of a massive email database of 41,000+ subscribers for effective email marketing campaigns. Running PPC ads on Amazon would also work to enlarge their customer base.

Similar PPC ads could be run on Google: the company now operates through multiple sales channels, including their Shopify website, Amazon, eBay and Etsy. Launching an SEO program would also help drive sales to impressive new heights. After being in business for more than 25 years, the brand has a smooth operation – and a busy one, shipping anywhere from 130–600 orders per day from their warehouse with an additional 60 per day through Fulfillment By Amazon.

They stock 100% of their SKUs and maintain $500k to $1 million worth of inventory to keep up with demand. The owners employ an experienced workforce that includes an office manager, tech support team that includes a web developer and those handling systems maintenance, a customer service rep, warehouse floor manager and assembly workers.

From the start, this company recognized that with the beauty and cosmetics industry booming, someone needed to supply the raw materials. As a result, this company has grown phenomenally by serving the type of person who starts a business in their kitchen and needs the ingredients to make quality products. Many of them consistently buy significant quantities.

This offering is a real beauty and has the ingredients for a buyer to take a highly successful business with stunning recurring revenues to something even bigger within this industry.

Contact our brokers today to understand just how good this deal is.

This B2B eCom Company is Represented by:

WebsiteClosers.com

Tech & Internet Business Brokers

WC 2611

Asking Price
$ 7,985,000
Cash Flow
$ 2,218,257
Gross Income
$ 7,608,041
Year Established
1995
Employees
13

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