Website Closers® presents an established eCommerce Brand that has dominated its niche on Amazon worldwide and demonstrated substantial year-over-year growth since its inception.
The brand operates in the hair removal market, specializing in nasal waxing kits for those unsightly nose hairs that both males and females deal with.
The kits make use of hair removal wax, which is a sticky substance used to remove unwanted body and facial hair. It also helps to eliminate dead skin cells and smooth out the skin. The global public has enthusiastically adopted hair removal wax and kits because of shifting ideas of beauty over the last several decades. Nowadays, it’s claiming a larger share of the cosmetics and personal care sector. Both men and women are becoming more self-aware of their physical appearance. People choose to remove unwanted hair for various reasons, such as aesthetic, social, cultural, and medicinal.
Operations & Logistics
This business sources all products from China in conjunction with an excellent sourcing agent, with whom the owner works closely to assist in manufacturing and kitting the products. All products, including accessories, are manufactured to spec, with company branding. The plastic components are bespoke, using custom molds. The owner has cultivated direct relationships with several other suppliers; however, the sourcing agent has negotiated better terms with her network. Having her manage the process is highly valuable in terms of time and money saved.
The business uses a 100% stock inventory model and typically maintains approximately $180,000 in inventory. Around five months’ worth is stored in the US at a re-kitting warehouse that ships to Amazon. They charge only $10 per pallet per month and generally maintain 17 pallets. In Europe, all merchandise is sent directly to Amazon facilities, while inventory levels in China depend on the manufacturing stage. All goods are sold on Amazon and Shopify but fulfilled by Amazon using an API connection. Orders are placed two to three times annually.
The average order value is $17.50 across three products, with a further three products to be launched within the next four months. Sales are made in the US and all other marketplaces where Amazon FBA operates, excluding Japan and India. Since listing on these marketplaces, there has been a marked increase in sales and interest.
The nose waxing kit is the best-selling product; however, 2 new waxing kits and new accessories are currently in production.
Marketing
The marketing strategy is straightforward but highly effective. The aim is to make the most distinctive and effective ads on Amazon for nasal waxing. The brand leverages creative video and HSA ads and is currently testing monthly deals and lowering advertising spend during the deal duration.
Sales are robust throughout the year, with peaks in Summer, as people tend to go out more frequently and want to look presentable.
Ownership & Staff
The owner endures a light workload, having systemized operations extensively. His primary tasks include:
- Monitoring stock levels
- Inventory planning
- Reordering products
- PPC management
- Reviewing shipping options to explore more competitive rates
- Reviewing competition and forming strategies to maintain dominance
No staff is necessary; only SEO is performed by a contractor, which has proven worthwhile.
Transition
Few special skills are required for a buyer to transition seamlessly into an ownership role and enjoy continued success. However, the brand has a distinct voice, and to maintain this, a good copywriter will be essential. Additionally, a specialist will be needed if more video ads are required. Social media presents an enormous opportunity but can be outsourced to a professional or an agency if the buyer doesn’t have the inclination or expertise to run those campaigns in-house.
The maintenance of this business is low, the logistics are incredibly efficient, the profit margin is excellent, and there is vast potential in retail and social media. The right buyer can leverage the branding and marketplace presence to realize substantial untapped value. The owner welcomes the opportunity to work with that buyer to ensure the brand continues to dominate its niche and fulfills its clear potential.
