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Skincare & Cosmetics eCommerce Brand – Primarily Focused on Foundations, Sprays & Blushes – 16% Repeat Order Rate

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Website Closers® presents an amazing and colorful eCommerce beauty and makeup eCommerce company. This company offers women’s cosmetic items to form a stunningly powerful revenue-generating machine that’s brought in more than $5.2 million in revenue in the last 12 months.

After launching in 2019, the company quickly found a highly receptive audience for its soft matte liquid foundation, which has earned outstanding reviews from customers. Leveraging an average order value of just $27.24, revenues soared from $3.6 million in 2020 to $5.2 million for the last twelve months, ended May 2021, and projections are that revenue will rise to $8.4 million by the end of the year. Earning a phenomenal 74% gross profit margin and a 437% growth rate in repeat customers year over year.

This company provides a buyer with an extraordinarily successful sales platform and spanning consumer base to grow from.

There is a plethora of opportunities to scale this company, particularly through advanced marketing techniques. The company now runs PPC ads on Facebook, where it has more than 28,190+ followers, and could introduce an SEO program for its website, along with an influencer marketing campaign on social media to boost organic traffic and expand their loyal following even further. The company also enjoys a high number of subscribers on its email database and could leverage that for an assertive new email marketing campaign, especially for new products.

This company was formed two years ago to tap into the blossoming field of cosmetics. This market is now worth billions globally and is poised for continued and reliable growth as there is high demand for skin care products in general and for 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.

The proprietary foundation formula is waterproof, oil free, and lightweight; it 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 formula, 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 is a licensed seller of popular products and has an agreement to use the trademark in advertising and marketing activities.

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.

The company now has three products, including the foundation, a spray, and a blush. The foundation accounts for 92% of sales, compared to 5.6% for the spray and 2.4% for the blush.

Sales remain steady year-round, and there are no seasonal factors to this business. The average customer is a woman in her 50s who regularly uses makeup and foundation, and typically repurchases the same products every two months. In fact, the company has a high recurring customer rate of 16.2%, and their ever-growing levels of customer satisfaction are also evident in the many 5 Star ratings that the brand has received.

The company’s ever-expanding customer base has also given them an enormous email database of 180,000+ engaged addresses. While the brand has built up much of its profitability through PPC ads on Facebook, they could easily utilize this expansive list for additional direct marketing opportunities.

The company has successfully leveraged social media to boost the brand’s name recognition, and now has 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, and content emphasizing their photos that were created by influencers. These marketing tools have brought an average of 300,000 visitors to the website each month.

There are promising options to expand this company and increase profitability by launching the company’s first SEO program to boost traffic organically, in addition to starting a blog on the website. The company could also continue to make effective use of both Facebook ads acquisitions and influencer marketing campaigns to boost traffic.

A new owner could start using Google ads that utilize re-targeting prospective customers who have visited the website in the past and lucrative look-alike audiences. The company could benefit from using text messaging initiatives as well, since the brand’s SMS marketing list includes 34,000 active profiles.

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.

One of the reasons why cosmetics sell so well globally is that people use them daily, 7 days a week, all year-round, which is why this industry is on such a massive growth trajectory. The key to being profitable in this highly competitive field is to successfully market to your customer base and earn their loyalty. This brand has done a phenomenal job at that, with a fast-rising base of repeat customers and glowing reviews and testimonials helping to sell the foundation to new customers. With sales exceeding $5 million in gross revenue, the brand has demonstrated just how effectively it has discovered and cultivated its audience.

Having relied on PPC ads as the key marketing tool, the brand has tremendous scale opportunities by branching out into other forms of digital marketing, including SEO, text messaging and influencer campaigns.

The brand has already demonstrated that its key products connect with buyers – the highly enthusiastic 5 Star reviews show that all too clearly. A buyer will be taking over a company that managed in a short time to generate stable and exceedingly high revenues while situating itself in just the right position for enormous future growth.

This eCommerce Brand Represented by

Website Closers

Tech, Internet & eCom Business Brokers

Listing ID: WC2329

Asking Price
$ 4,500,000
Cash Flow
$ 1,217,210
Gross Income
$ 5,259,092
Year Established
2019
Employees
2
800-251-1559