Website Closers® presents a unique Marketing Agency that represents Health & Beauty Brands on the Amazon Platform. The firm offers comprehensive, stress-free solutions to their clients, removing the need for them to obtain the extensive knowledge and effort necessary to successfully sell on the Amazon marketplace. This has resulted in a significant surge in clients and a boost in profits for this firm, which saw a 14% increase in earnings in 2022 over the prior year.
The firm has been placed in front of our lending partners and is now pre-qualified for an SBA-backed 7A Loan. This will allow a Qualified Buyer to place as little as 10% down to purchase the company, and pay back the SBA Loan over the course of an entire decade. This is important for buyers for a couple of reasons. First – it allows for a much faster Return on Investment than when using alternative lending (which tends to have shorter amortization schedules and higher rates) and/or their own equity. And Second – when the SBA process is used, a business goes through a number of diligence processes … from the bank, the buyer, the buyer’s diligence team, and a 3rd party valuation expert that is hired by the bank to confirm the viability of the company to pay down debt service at acceptable ratios. The result of this full blown diligence and analysis is the sale of a strong asset that has had a multitude of eyeballs on it during the selling process.
The company specializes in buying bulk inventory from clients, leading to most of its reseller agreements being exclusive. This prevents other sellers from selling the same products on Amazon.com, providing the brand with a strong advantage in pricing and ranking, without having to compete for the Buy Box.”
This company is filling a clear need in the eCommerce space by helping other brands scale on the competitive and often complex Amazon marketplace. While they are currently focused in the beauty segment, there is nothing to keep them from expanding into adjacent verticals, and ultimately, most categories on the marketplace. They could also take these same clients into the online marketplaces as well. Once you have the relationship and prove your worth – the sky is the limit.
Their approach is simple: brands give them the exclusive or semi-exclusive right to sell for them on Amazon, and the firm handles all the tools needed for that client to succeed, including logistics, listings management, product page optimization, professional images, ad management/spend and much more.
Not only is this company operating successfully in the beauty product niche space, but also on Amazon, the world’s leading eCommerce platform. A key to their success has been the simplicity of their approach. This is a very straightforward business, offering plenty of value to new clients eager to gain a solid presence on Amazon but not entirely sure how to get there.
Launched five years ago, the company has created fully demonstrated systems and processes to help clients with their product sales. The company now operates as both the exclusive Amazon wholesaler and retailer for each brand it sells. The company has one year contracts that are renewed automatically if they meet performance goals that were agreed to in advance, with an average contract size of$100,000+. Under the terms of the standard yearly exclusive agreement, this brand will purchase products at wholesale prices (or better) and resell them as the only retailer for that product on Amazon.
Their clients are getting the results they want, since the company enjoys a 27% Retention Rate. This brand specializes in identifying only the most relevant and trending products to sell, and with their exclusive reselling rights, they’re able to utilize both organic and paid traffic sources with no competition from other Amazon sellers on most brands. The business also takes full advantage of the Amazon Transparency Program, which protects their clients from outside competition and counterfeit products.
The company is constantly adding new brands, and they now have 32 clients on board. Their work is also not impacted by seasonal factors, since consumers use beauty products all year long. Some of their customers place orders 3-4 times a month
The business boasts a strong partnership with Amazon’s brand registry team and has a proven approach to finding beauty brands struggling with ineffective listings. With a streamlined process for identifying sellers, they provide personalized presentations showing how they can help their beauty products thrive on Amazon.
Their work includes a systemized marketing strategy, which is done in-house. The company has shown it can successfully drive traffic to product listings using search engine optimization that boost their rankings in search engines and drives organic traffic higher.
This is also a business that won’t require a significant workload for a buyer. The current ownership has 2 full-time employees who handle account management and product page optimization, so the current ownership spends only about three hours per week on this company, mainly managing cash flow, restock approvals and acquiring new brands.
The buyer of this business will be given access to all the processes, systems and protocols that this business has successfully developed to help their clients find success on Amazon. And they will receive all the training and support necessary to successfully run this company after closing. All methods and processes will be transitioned to the new buyer, and everything is documented in writing. The owner is excited to personally assist in the transition phase and train the new owner. He will also assist in acquiring and growing the client’s portfolio.
The company’s proven success at organic rankings will also be disclosed to the buyer, and the owner is available to provide an extended consultation period to the buyer. Selling on Amazon isn’t easy for a newcomer, but it gets considerably easier with the assistance of a proven agency that understands how to expand organic traffic and drive sales for clients. This company’s proven ability to turn failed listings into successful ones should demonstrate how appealing this brand is.
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Tech, Internet & eCommerce Business Brokers