Website Closers® presents an SBA Prequalified Deal that will allow Qualified Buyers to purchase this business for as little as 10% down at a low interest rate amortized over an entire decade. And given the growing level of cash this business is throwing off, servicing that debt and earnings a quick ROI seem easily within reason. This eCommerce company offers Cosmetic Products Direct to Consumer via its Website and is seeing a 436% growth rate for their Repeat Customer Base. In fact, increasing demand for their skin care and rejuvenation beauty products have delivered this brand a customer base of over 326,000 and growing.
This cosmetics brand was launched to help those that wear foundation makeup to help eliminate unsightly acne, blemishes, wrinkles, and age spots. This foundation, sourced from Asia, is lightweight, long lasting, and gives the face a soft, airbrushed look. Glowing 5-Star reviews speak to the enormous efficacy and brand loyalty enjoyed by the brand. Customers rave about how this product makes them look and feel—and word of mouth is a powerful tool in an industry where advice is passed between customers regularly.
Approaching this niche market with a unique, stand-out product speaks to this brand’s understanding of the vastly lucrative cosmetics market. Skincare, make-up, and other aspects of this vertical have seen growing sales for decades – with the U.S. representing the most valuable beauty and personal care market in the world, generating $89.5 billion in sales in 2018. Globally, the cosmetics market is valued at $380.2 billion and is projected to reach $463.5 billion by 2027 as a wide variety of cosmetics have become an indispensable feature for the daily lifestyle of millions. There has also been a significant rise in the use of cosmetics among men in their daily routine, pushing market demand even further. Manufacturers are responding by launching new products with natural ingredients, fresh branding, and unique campaigns to target this growing demographic.
This company’s makeup foundation, which bears their brand name, is purchased directly from the manufacturer and sold on this company’s website. This company has become a niche leader in this profitable field because they are the largest licensed distributor of this brand in the world, with a 10-year auto-renewing licensing agreement in place with the trademark owner. The average customer is a middle-aged woman, roughly 55 years old, who regularly uses makeup and foundation. What has been particularly important for this brand is that their customers, once sold on their top SKU, typically repurchase their product every two month. With a customer base getting closer to 350,000, that provides this company with a fast-growing amount of repeat business.
Visual marketing campaigns through videos, images, and application instructions do incredibly well in this niche category, where photos of customers using the product can become powerful marketing tools. Using product photos and customer testimonials, this company has been advertising on Facebook, with a focus on acquiring new customers. The company also runs PPC ads on Facebook to boost sales and has started an influencer campaign. 36,000+ followers on Facebook represent a massive foundation for future marketing, as do their 6,400 Instagram followers. Their website is optimized for SEO to boost their rankings in search engines, and it’s working: the company now receives more than 300,000+ monthly visitors. Driving sales channel diversification by working with eCommerce giants such as Amazon and Walmart would widen their reach and allow for a wider range of customers to find their product. The brand could launch new PPC ads on Facebook and Google, while expanding their presence onto other social media sites in order to boost organic traffic to their website.
Expanding their current influencer marketing campaign on new social media sites would prove to be highly effective in boosting sales, as would an assertive email marketing campaign. The company currently has an email database with 180,000+ subscribers which could promote a higher return customer rate, higher customer lifetime values, and be ideal for retargeting potential customers. Launching a blog on their website would also help expand their customer base.
This business has several other major benefits. It is highly automated, requiring no more than 10 hours a week to run, with tasks that include managing Facebook ads and responding to customer service contacts, which tend to average around 100 per day. The company has two full-time employees who play an instrumental role in maintaining operations: a full-time customer support manager and an overseas agent who fulfills all orders from a warehouse where the inventory is maintained. The agent handles all aspects of inventory management, while the company purchases inventory based on demand. The company also employs a part-time video editor and part-time public relations manager, as well as agencies to handle accounting and email marketing.
The bottom line is that women use cosmetics daily, so once a brand like this has established a connection with a customer – who comes to rely on their makeup foundation for daily use – sales remain sticky. That’s clearly been the story this brand has to tell: they successfully source a popular product that has given them glowing reviews from satisfied customers, and they still have proven options to grow profits quickly. That’s a beautiful and wrinkle-free offer for any buyer.
