WebsiteClosers® presents an SBA Pre-Qualified Company in the Beauty Products and Cosmetics niche, by acquiring this fast-growing eCommerce Brand offering its specialized line of Lip Care Products, made for them according to their own popular and in-house developed, proprietary formulations. Sold at appealingly affordable prices, with a vibrant social media campaign attracting new customers, the company’s brand loyalty is soaring as they continue introducing new seasonal flavors. The company’s Repeat Customer Rate has shot up to 27% as more than 750,000+ people have become followers on their social media accounts.
As an SBA Pre-Qualified Business, a Qualified Buyer can place as little as 10% down and amortize the balance of the SBA loan over a 10-year period, all at market-leading interest rates. This allows for a much faster ROI for a buyer.
In addition to their unique, premium-quality lip products, which are manufactured directly for them, the company has built its reputation on something else: packaging. Instead of standard packaging, orders are shipped in charming, uniquely designed honey pot containers frequently cited by customers in glowing reviews as a top selling point. The combination of specialized lip products and superior, creative packaging has been a winning formula for them. And the products make excellent gifts.
Their revenues have been on a solid upward trajectory in the past three years, with an impressive 68.5% year-over-year increase in sales from 2022 to 2023 and a 56% TTM vs 2023 Growth Rate in Profit. As their brand recognition has gotten stronger, the company has added new accessories and subscription services, and an expansion onto new sales channels, including Amazon. As new flavors have been launched, the company has enjoyed revenue spikes as high as $108,000 in a single day.
Besides their packaging and skilled marketing, a new owner will acquire a profitable business with a successful and low-cost operating model, and rising sales on their Amazon and TikTok shops. This business operates in an enormously profitable and evergreen Beauty Brand vertical. In 2024, the Global Lip Products market is expected to generate $22.11 billion in revenue, and projected to continue growing at 4.03% through 2029, as the ongoing trend toward personal grooming and wellness drives sales higher. The COVID-19 pandemic also massively impacted the sales of lip care & beauty products, particularly through online stores.
This business represents a clear opportunity for a U.S. Buyer to acquire this company and then scale it quickly by expanding sales internationally, introducing new products, targeting B2B sales to retailers and beauty care shops, and expanding sales channels to include major online platforms such as Walmart and Etsy.
Business Broker Takeaway
Our analysis of this business shows that the value propositions present are strong for a first-time buyer looking to get into the online space. We are excited about this business for 3 important reasons:
1. Expanded Sales Channels. To boost sales, the company recently expanded its sales channels beyond its Shopify website. Both the new Amazon storefront and TikTok shop are enjoying rising sales as more customers discover them. There are major opportunities to scale the Amazon store even further, including by running PPC ads on the platform to introduce their products to a wider number of customers, and an international expansion into Amazon’s foreign platforms. Since lip care, beauty and wellness represent a global industry, there are enormous possibilities for this brand’s products to become top sellers in other nations.
2. Creative Marketing. A major strength a new owner gets is the company’s highly successful digital marketing strategy, which has become a solid engine for growth. The company’s social media marketing has brought them 77,000+ followers on Instagram and an additional 71,000+ on TikTok, which is not only building brand recognition but delivering high levels of organic traffic to its Shopify website. The site now attracts 200,000+ unique visitors each month. The company also connects with its existing customer base through newsletters to the 68,000+ email subscribers it maintains in its database, and another 70,000+ subscribers for the brand’s text messaging campaigns. The company bolsters these campaigns by employing customer service representatives who respond to comments and direct messages on social media, which drives customer engagement significantly higher.
3. An Automated Business. This turnkey operation virtually runs itself, so the seller devotes just 5 hours per week to running the company. The seller is assisted by a team of six contractors who manage tasks that include customer service and social media marketing, while the current ownership reviews weekly ad metrics and creatives and focuses on growing the Amazon and TikTok sales platform. While the company has used a 3PL to manage inventory, they are transitioning more of their orders to Fulfillment by Amazon for shipping and customer service. Operations are strong enough that the company can process 500+ orders per day. All told, the company has sold products to 150,000+ customers. In return, many of those customers have given the company plenty of strong 5-star reviews. The business also benefits from working with two trusted suppliers that are manufacturing their SKUs.
The Company
Launched in June 2021, the company quickly attracted buyers with its lip balm products formulated with propolis extract, a mixture of pollen and beeswax collected by bees. This extract is renowned for providing gentle, soothing healing to chapped lips while making them look soft and moisturized. Their catalog also includes accessories such as lip mask treatments and face moisturizers, which have helped boost upsells. To accommodate those buyers, the company offers a monthly subscription service for those who don’t want to bother reordering once their lip balm runs out.
With sales now remaining steady throughout the year, their demographics include women ages 40 and older who have responded so positively to the quality of the company’s lip balms, the adorable packaging, and the brand’s affordable pricing. All three ingredients have helped the brand stand out in a competitive field.
With rising recurring revenues, their firmly established brand loyalty, a low-cost drop model, and an exceptional social media presence, it should be clear to an ambitious investor that this is an excellent opportunity to acquire an experienced beauty brand, then scale this business into a true industry leader.
