Website Closers® presents an incredibly attractive eCommerce retail swimwear offering that has a large array of swimwear for men and women, this exciting opportunity is a fully trademarked, niche lifestyle brand with an expansive social media following and an ocean of existing SKUs.
Despite operating within a highly competitive vertical, this business has seen an AOV of $83 and has recognized almost $350,000 in average annual revenue over the last three years, earning them a 37% TTM growth rate. Turning the heads of more than 1 million consumers visiting their website annually, the company has achieved a 23% Repeat Customer Rate. With compelling, proprietary designs it’s not hard to see why this red hot eCommerce apparel company is making a splash.
Touting over 162,000 followers across their social media channels, this company’s loyal customer base has been built through strategic marketing campaigns and a diverse product offering. Currently, ownership has leveraged a mix of paid Facebook advertising, Google advertising, affiliate marketing and search engine optimization to drive business to their vast selection of swim apparel.
As a result, the company saw over 4.4 million webpage views in 2020 alone. With 2,100+ individual SKUs, this target has a wide variety of full body swimsuits, swim tops, swim bottoms and men’s swimwear that are considered a unique, eye-catching fusion of European and Californian styles … exclusive to the brand.
In fact, these proprietary designs are offered by an enduring, trademarked brand with more than 20 years of success under its belt. Designing all products in-house, the company operates from a 600 square foot workspace. Within that workspace, an estimated 150 square feet is used for holding inventory and an estimated 200 square feet has been designated to shipping/ administrative work, and the remaining 250 square feet is used for cutting and sewing. Management believes this workspace to be easily relocatable or outsourced entirely. Typically, the company sends out orders each day from their on-site warehouse, but they’ve also leveraged Amazon FBA services for 25 of their best-selling products.
Averaged over the last three years, this appealing swim line has allowed the current owner to take home more than $126,000 in annual discretionary earnings while working an average of 30 hours each week. The owner’s responsibilities currently include website maintenance, eCommerce tracking, production oversight and product design.
Beyond that, the business also employs a seamstress, a fabric cutter, and a shipping coordinator to help facilitate the day-to-day operations. The addition of a virtual assistant could easily reduce the number of hours dedicated to the owner’s daily tasks and hiring a talented swimwear designer could allow for less owner involvement overall. This offering holds massive potential for a prospective buyer. Immediate profit opportunities include expanding the Amazon product offering, capitalizing on the recent approval of sales through Walmart.com, extending product development into adjacent categories, and streamlining with the implementation of a 3PL. The company is currently Amazon Brand Registered but only offers a fraction of their products through the platform which, in turn, drives only 12% of their profit. With a reported 89% of buyers purchasing from Amazon, expanding the company’s product lines on the site could easily drive higher revenues with minimal additional effort. In the same vein, offering products through Walmart Online could prove to be insanely lucrative due to their spanning reach and reputation.
Operating out of a rented facility for vertical integration as well as for cutting and sewing the products, has allowed this company full control over the supply chain. This dynamic framework drives incredible gross margins of more than 75%. Minimizing the overhead efforts and costs, the incoming owner could easily outsource this process at a minimal incremental increase in cost of $2.50 per one piece suit and $2.00 additional cost per bikini. The company’s products carry an average retail price of $64 for a one piece and $65 per bikini, which would lower the unit contribution from roughly $48 to $45.90 per suit. A monumentally lucrative framework, this company could easily absorb this cost to deliver faster, simpler service with excellent margins.
Internally, engaging with third-party logistics services could streamline the operation, reduce overhead costs, and increase their already-stellar 75% gross margin. Regarding their limitless marketing opportunities, the new ownership would benefit from a strong social media presence, significant organic online search results, an established presence in the online marketplace, and a solid foundation to build future advertising efforts upon.
Known for being racy, provocative, and risqué, this eCommerce retailer is more than a swimwear line, it’s a statement and a sassy stronghold in the swim apparel space. Boasting proprietary product designs, trademark protection, a dominant hold on the industry, and an impressive 37% TTM growth rate, this offering is the perfect opportunity for an ambitious buyer to dive into the deep end without any fear of drowning.
Come on in, the water’s great!
