The target is a well-branded eCommerce retailer in the evergreen skin care sector, selling direct to customers by way of its organically-ranked Amazon FBA Seller Central Account and branded, fully integrated Shopify Websites. The company sells under 3 separate all-natural brands in the insect repellant and sunscreen sectors.
All of its products are proprietary, FDA-approved formulations that are chemical free, environmentally safe and biodegradable. The Company has achieved very low overhead by primarily utilizing the Fulfilled by Amazon (FBA) model, as well as great margins thanks to a 44% profit margin and a $45 average ticket price. With impressive growth opportunities ahead, all tied up with a completely branded and trademarked product presentation, this is a high demand business that is ready for scale.
The company has only touched the surface of where it can go in this sector – it will make an outstanding addition to any existing eCommerce retail portfolio in the skin care or outdoor space, and offers the fast-paced entrepreneur of any skill level an opportunity to step into one of the hottest segments today as a standalone player with real pull and platform scale opportunities available on day one.
Thanks to its streamlined, low-maintenance model, very little time is necessary to run this business as-is. The company has dialed their focus into a well-executed lineup of 20 high-volume SKUs, with space available for additional SKUs not yet on offer from its existing supplier. Originally founded in 2004 and purchased by the current owners in 2015, this eCommerce Company is posting $791,000 in 2018 sales with earnings of $170,000.
The company requires only 400 sq. ft. of storage space, since 80% of its sales are handled through Amazon’s FBA warehouses. This allows a new owner a great deal of flexibility from both a location and scale perspective. The company can be operated from any location, and by not having the overhead, capital expenditures or other headaches of a warehouse, the new owner can focus on growth.
Regarding scale, this Internet Company can be further developed in a multitude of ways almost immediately following acquisition. These include expanding the company’s own eCommerce websites (and developing an SEM plan accordingly), expanding product and category lines using the valuable brands already developed, and growing the company internationally by using Amazon’s FBA warehousing located around the world. Additional opportunities include the development of wholesale distribution, a retail arm and more social media engagement.
This company has everything smart entrepreneurs, investors and lenders are looking for in an M&A opportunity: a Branded, Trademarked Product Line, Great niche (high demand segment), Highly Scalable and lots of runway ahead.
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