Website Closers® presents an SBA-Prequalified eCommerce Business in the Beauty Vertical that focuses on Skincare Products rooted in Ancient Chinese Tradition. The company has garnered a considerable wholesale channel and has now shifted its focus toward growing D2C (Direct to Consumer) sales to boost margins.
SBA Prequalification
This designation is not easy to achieve, but this company went through the process and achieved prequalification.
What does this mean for a buyer that needs some capital to purchase this business? Notably, this means that the company is very strong financially, which has allowed it to be pre-approved with our Lending Partners. Our Lending Partners work in the digital sector and have a portfolio of underwritten deals that match this business. It is important to always use lenders that have knowledge of a particular space as well as the brokers they are working with – not all lenders are alike.
With an SBA 7(a) loan, this business can be purchased by a Qualified Buyer with as little as 10% down, amortized over a 10-year period … all at the lowest interest rates available in the M&A space. This helps buyers that use this lending vehicle achieve an ROI on their down payment very quickly while freeing up cash flow for expansion or other endeavours.
The Brands
The core brand is a premium, award-winning beauty line rooted in traditional Chinese wisdom that takes a modern approach to ancient rituals. The products are noninvasive, natural solutions to sculpt the face and support holistic skin health. The range was inspired by the founder’s grandmother, who has incorporated jade rolling and gua sha into her daily practice for over 50 years. The brand offers a variety of facial tools designed to smooth fascia, support fluid drainage, melt muscle tension, and reduce puffiness. These products have won numerous awards given their effective nature and popularity. In addition to the tools, a skincare range formulated with herbs and ingredients used in traditional Chinese medicine is incredibly popular. It was designed to pair perfectly with any of the facial tools and, subsequently, has boosted the average order value and customer satisfaction. All formulas are proudly vegan, cruelty-free, non-comedogenic, and designed with sensitive skin in mind.
The sister brand is focused on affordable, accessible mini beauty products under $10. The range is ideal for travel, novelty, gift-giving, trial, and convenience.
Unique Selling Points
At the heart of what makes this business truly exceptional are products that combine results, quality, and innovation. The team takes pride in its commitment to bringing time-tested practices to customers in an accessible and modern way. Their dedication to creating products of the utmost quality is evident in every facet of the offerings, from the carefully selected materials and ingredients to the intentional packaging and the overall customer experience.
Another compelling value proposition is the brand story and reputation. A genuine connection to heritage and culture intertwined with the founder’s background as a holistic esthetician infuses the brand with an exceptional level of credibility and authenticity. As a result, they have emerged as the leading authority in the realm of skincare products in this niche.
Moreover, a critical factor that sets the business apart is its video content on social media, which has fostered an engaged and loyal audience of over 400,000 followers. A unique blend of educational content and products that resonate with the target audience has resulted in numerous viral videos on TikTok. This not only shows that the products are filling a need and resonating with customers but also demonstrates the power of the community’s word of mouth, which amplifies and shares the content and products.
Adding to the unique value proposition is the supplementary brand, which complements the offerings of the primary brand. While the latter is synonymous with luxurious beauty tools and skincare, catering to discerning shoppers who seek the best of the best, the former addresses the needs of price-conscious customers, broadening the company’s reach. These products are excellent basket builders and are sold on the primary eCommerce platform to increase the average order value.
Marketing
The digital marketing strategy is multifaceted.
Paid ads on Facebook and Instagram, emphasizing creative testing and producing different pieces of content that resonate with customers, drive traffic to the websites.
Google Ads has proven highly successful and achieves an average ROAS of 4.5.
The company recently opened its Amazon storefront and employs PPC with a similar return on ad spend to Google. All three are performed by specialized agencies, reducing the owner’s workload.
Email marketing has proven highly cost-effective. Through a combination of flows and campaigns, it accounts for 30% of DTC revenue.
Finally, organic social media is also a significant revenue driver for the company. Around five weekly posts on Instagram and Facebook, respectively, feature a mix of educational material, product highlights, trends, testimonials, behind-the-scenes, and promotional content. The team amplifies this by reposting it on Pinterest and YouTube Shorts.
The typical customer is a female from North America between 20 and 50. However, the products work for all age ranges and skin types.
Sourcing, Fulfillment, & Inventory Management
The sourcing process is a crucial aspect of the owner’s commitment to delivering high-quality products to customers. They have established a long and collaborative relationship with trusted manufacturers in Asia and the US and have negotiated favorable pricing and payment terms.
A 3PL handles order fulfillment, ensuring that products are delivered to customers promptly. Approximately 80 orders of various quantities are processed and dispatched daily.
One owner works in the capacity of CEO and oversees the strategy and direction of the company, including marketing, customer experience, new product development, and retailer relationships. The other handles finances, working closely with the accountants to review budgets, P&Ls, bank accounts, and credit card accounts. She also helps negotiate costs when necessary.
Four part-time contractors work as marketing managers, social media assistants, customer care representatives, and graphic designers.
