Website Closers® presents a bombshell beauty and makeup eCommerce offering. This company operates under a licensing agreement and offers women’s cosmetic items to form a stunning revenue-generating machine that’s brought in millions in revenue in the last 12 months. The company is now one of the largest sellers of affordable, high-performance makeup products in the United States.
This business was formed to tap into the blossoming field of cosmetics. Worth billions globally, this market is poised for continued and reliable growth. With there being a high demand for skincare products in general and anti-aging products in particular, this company made an early decision against creating a wide range of cosmetics and decided to focus on making the best foundation available in cosmetics instead.
Their proprietary offering being their soft matte foundation, its formula is waterproof, oil-free, and lightweight and is designed to hide redness, tattoos, blemishes, pimples, age spots, and anything else a user may want to conceal. With a promising and sought-after design, this product has a proof of concept hard to find in other products. The product’s manufacturer holds the brand trademark, and this company buys the products directly from the manufacturer to be sold on their website, which also serves to promote the brand. The company has a 10-year auto-renewing agreement to use the trademark in advertising and marketing activities, so the risk profile associated with losing that right is low. The company now has three product offerings. Alongside the foundation, they also have spray and blush products.
The current owner spends 7-10 hours a week running this business, with primary tasks that include managing Facebook ads, creating new Facebook creatives, and checking team messages. The owner employs several contractors including a full-time customer support manager, a dedicated agent in China and his employees, a part-time video editor, and a part-time public relations manager. The owner also uses the services of an accounting agency and an advertising agency to oversee its email marketing campaigns, making the platform easily transferable to new ownership.
Since inception, the company quickly gained a highly receptive audience for its soft matte liquid foundation, which has earned outstanding reviews from customers. Leveraging an AOV of upwards of $27, revenues soared tremendously within the last twelve months; with projections that revenue will rise to even greater heights by the end of the year. They also earned a phenomenal 74% gross profit margin and a 437% growth rate in repeat customers year over year.
Sales are done entirely through the website on Shopify, with a hybrid inventory model for deliveries. Orders are air-shipped daily from a warehouse in China, through an agent who fulfills orders. This approach has provided the company with faster shipping times and daily fulfillment of orders by having the right amount of inventory available.
Their revenues remain steady year-round, and there are no material seasonal factors to this business. The average customers are women in their 50s who regularly use makeup and foundation, garnering recurring orders every two months. The company has a high return customer rate of 16.2%, and their surging levels of customer satisfaction are also evident in the many 5 Star ratings that the brand has received.
This company provides its buyer with an extraordinarily successful sales platform and a spanning consumer base to grow from. The company’s ever-expanding customer base has also given them an enormous email database of 192,000+ engaged addresses. While the brand has built up much of its profitability through PPC ads on Facebook, it could easily utilize this expansive list for additional direct marketing opportunities.
Successfully leveraging social media to boost the brand’s name recognition, they’ve attracted 6,400+ followers on Instagram and an even more impressive 28,190+ followers on Facebook. The brand’s current campaigns focus on acquiring new customers, with the majority coming from the United States, Australia, and New Zealand. The brand also uses customer testimonials in its ads, centering its content authenticity and emphasizing the photos that were created by influencers. These marketing tools have brought an average of 300,000 visitors to the website each month.
There are numerous opportunities to scale this company, particularly through advanced marketing techniques. Launching the company’s first SEO program to boost traffic organically and start a blog on the website would undoubtedly aid in expansion and increase profitability. The company could also continue to make effective use of both Facebook ads acquisitions and influencer marketing campaigns to boost traffic.
In its current state, this company’s primary channel of promotion is through PPC ads on Facebook. With its proven impressive follower count, an SEO program for its website, and an influencer marketing campaign on social media would boost its loyal following further. The company also accrues a high number of subscribers on its email database and could leverage that for an assertive new email marketing campaign, its focus on new product offerings.
A new owner could utilize Google ads that re-target prospective customers who have visited the website in the past and lucrative look-alike audiences. Capitalizing on the convenience that mobile ads provide, they could also benefit from using text messaging initiatives as well since the brand’s SMS marketing list includes 34,000 active profiles.
As this brand has proven that its key products connect tremendously with its consumers, a potential buyer will be taking over a company that has managed in a short time to generate stable and exceedingly high revenues while situating itself in just the right position for enormous future growth.
