Website Closers® presents a prosperous company with a portfolio of eCommerce stores operating in the women’s beauty and apparel markets. Almost all products are in evergreen verticals that have stood the test of time, and management works with a long-term vision, avoiding fads or trends.
Operations
Management has taken advantage of market shifts astutely, as evidenced by a keen focus on plus-size items, which have continuously trended up in the US for over 20 years. They have built a portfolio of DTC products sold exclusively on their websites run via Shopify and Checkout Champ. Across the portfolio of 7 flagship apparel and cosmetics brands, all utilize a “One-Product Store” model.
The company employs a subscription business model, where customers pay a monthly fee and, in return, gain access to free shipping, a free product, and a VIP website where they can choose from dozens of complimentary products. The team constantly tests for new profitable SKUs to add to this program, which is demonstrating explosive growth.
In addition to the active stores, the owners have run others with lifetime sales ranging from $100,000 to $5 million. These products could be relaunched and generate healthy profits through subscriptions, even if they merely break even on front-end sales.
Furthermore, they have designed a weekly process that has been optimized over the past four years to test products and create new stores to put on the subscription model eventually.
Key Metrics
Key Performance Indicators and metrics include:
- An Excellent Return on Ad Spend
- Monthly Recurring Revenue from Subscribers
- High Subscriber Retention Rates
- Substantial Front-End Gross Profit
- An Impressive Subscription Opt-In Percentage
- Intangible Asset of Learning How to Build and Maintain eCommerce Stores
Supply & Logistics
Products are procured from a private supplier in Asia. The supplier, with whom management has cultivated an excellent relationship, is able to source all products from various manufacturers.
Overheads are low, and the business utilizes a drop ship model, negating for large working capital outlays or the risks and headache associated with managing risk, warehousing and warehousing employees. Cash flow remains consistent and abundant in the system created by these founders.
Marketing
This is a pure play Direct to Consumer Model, which means that the company only operates on its own branded websites. The company drives traffic to these websites using various strategies, but is not currently focused on any marketplaces like Amazon, Walmart, Target, eBay or others.
The company’s digital marketing strategy is simple yet highly effective. The majority of traffic is generated via paid media on Facebook, Instagram, and TikTok. To maximize Customer Lifetime Value, funnels are optimized to lead customers into the VIP subscription model. As a result, the company can break even or endure a slight loss on paid ads while remaining highly profitable.
In addition to subscription profit, the business generates back-end profitability via email and SMS marketing to an enormous database of over 3 million.
There is very little seasonality in sales, and all products are bought year-round. The typical customer varies slightly by brand, but women between 45 and 54 are the most popular demographic.
Human Resources
The two owners work 20 hours weekly combined. They focus primarily on strategic decisions like which stores to bring onto subscription, scaling and descaling ads, and increasing the Average Order Value and subscription opt-in percentage. Additionally, they decide which products to test each week and maintain relationships with key personnel such as the supplier and subscription consulting agency.
Additional employees work in the following capacities.
- VP of Operations
- Operations Coordinator
- Customer Service Manager
- 10 Customer Service Email Agents
- 3 Product Research Contractors
- 4 Video Creators and Editors
The subscription process, email marketing, phone customer support, fulfillment, and the creation of user-generated content are outsourced.
A new owner requires few special skills to enjoy continued success and growth. A general understanding of Facebook ad mechanisms, how to manage budgets, and how marketing channels all work together would be beneficial but optional, given the experienced team. The owners are happy to provide training to learn all of these skills.
The Industry
The women’s beauty and undergarment apparel markets have been growing steadily over the years. From shapewear to hosiery, women’s undergarments play a crucial role in enhancing their appearance and boosting their confidence. Comfort, style, and fit are equally important in the vertical. In the beauty market, there is a vast range of products to choose from, and the industry has seen a shift toward natural and organic products as consumers become more aware of the impact on their bodies and the environment.
This company observes these markets closely as more direct-to-consumer companies have been servicing these highly profitable niches in recent years. For example, Kylie Cosmetics, founded by social media influencer Kylie Jenner, was started in late 2015 and now has a billion-dollar valuation.
