Beauty Brand in the Skin Care & Hair Care Verticals – Design Patents in Place – DTC eCommerce & Amazon Channels – Strong Intellectual Property in Place

Pending

Website Closers® presents a private label, fully proprietary business with design patents in place, operating in the enormously profitable beauty industry. This group develops and manufactures Beauty Products for its multiple, privately-owned Skin Care and Hair Care Brands. As experts in the vertical, the focus is on becoming the leading authority in niche markets ripe for opportunity and disruption within Beauty.

The brand serves the at-home, professional microdermabrasion category in the skincare market. In addition to their #1 in category devices, they provide a complete line-up of topical products that complement the skin care regimen as consumables with a “Subscribe & Save” model.

A second brand serves the ceramic tourmaline device category in the hair care marketplace. In addition to a proven line of complete hair care packages, the brand has enormous potential in the largest segment of the beauty category.

The company keeps strong books and records, which has allowed our firm to acquire SBA PreApproval of the company for an acquisition. This opportunity cannot be ignored because qualified buyers are able to purchase companies using the SBA process with as long as 10% down, amortized over an entire decade at highly competitive interest rates.

The brand boasts a healthy $66 average order value on Amazon, with an impressive 33% repeat customer rate. The typical customer is a professional female between 35 and 55 years old with a household income of $50,000 to $150,000. The business is highly systemized, and the owner works just 10-15 hours weekly. His primary tasks include strategic and financial planning.

Additionally, six established employees work in the following capacities:

• General Manager
• Marketing Specialist
• Account Manager
• Warehouse Assistant
• Two Customer Happiness Specialists

This staff performs standard eCommerce operations. The company has a complete operations manual with detailed standard operating procedures (SOPs) for every task performed by every position. The operations manual also includes daily punch lists (DPLs) that manage daily responsibilities for every position. The staff and VAs manage all operations. Additionally, all employees and VAs are available to transition with the sale, subject to new contracts, and can efficiently work remotely and manage their daily tasks.

No special skills are required besides basic computer knowledge and an understanding of the Amazon marketplace, Seller Central, and managing the staff and VAs.

The beauty industry’s digital transformation over the past two years shows no signs of slowing down as new consumer habits meet an increasingly diversified market. As a result, brands will need to understand how to adapt as more spending moves online—or they risk missing out on critical sources of revenue and new customers. The industry is exploding. In 2022, US cosmetics and beauty retail eCommerce sales will be more than double 2019 ($18.60 billion versus $9.21 billion). By 2026, those eCommerce sales will account for nearly a third of the category’s total retail sales.

Scale opportunities are, therefore, tremendous and are being actively pursued. The business has not spent one dollar on marketing its branded website off Amazon in the last three years. This is lowhanging fruit that will generate a proven, high return on investment. In 2019, the website generated over $500,000 with little marketing. Since then, company resources have intentionally been reallocated to domestic and international expansion on Amazon.

The key initiative for Q4 this year is developing a new website that will be highly optimized for traffic and sales conversions. The company is currently working with an agency to create the new website and allocate resources to Facebook, Google PPC, TikTok, and SEO marketing which will allow them to scale customer acquisition.

As successful as the brand is, they have not tapped into the vast marketing opportunities at hand. These include affiliate partnerships, expanding their social media presence with great content and paid ads, SEO, and retargeting.

Expanding digital marketing strategies presents a haul of opportunities. For example, a focused email campaign would undoubtedly attract more customers, increase repeat business, and could be used to launch new products, run promotions, and increase upsells. In addition, implementing influencer relationships and researching additional top-selling SKUs would help this already flourishing business snowball.

Given the brand’s domestic success, continual international expansion is a tremendously exciting and obvious opportunity. The owners should immediately look at expanding their Amazon markets rapidly. Then, they can reach a new audience of millions on the world’s biggest eCommerce platform and see an enormous boost in revenue. Some outstanding agencies can successfully handle the Amazon store, from listing products, optimizing keywords, implementing PPC advertising, and everything in between. An owner reluctant to take this responsibility on themselves could readily go this route with a high return on investment.

The company has been provided a dedicated account manager at Amazon to assist with global marketplace expansion. Amazon has also invited its brands to sell in Australia and Japan due to overwhelming success with their FBA Export program to those countries.

Management has completed the “heavy lifting” of establishing a presence in 39 countries worldwide via Amazon’s fulfillment centers. Additional resources will allow significant growth and scale opportunities through inventory allocation and PPC investment. This acquisition is primed for enormous growth in the right hands.