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Social Media Driven eCommerce Brand | Haircare Products | 37% Net Margins | 520,000+ Monthly Uniques | Proprietary Product Line | Influencer Program in Place

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Website Closers® presents a Social Media Driven eCommerce Brand for sale that has quickly become part of the daily beautification routines of its female demographic customers, having become a go-to destination for Premium Hair Care Products for a wide variety of hair types.

This company’s premium line of Hair Care products includes multiple top sellers, with the company now shipping up to 120 orders a day during the busiest sales times and enjoying major spikes in sales around the holidays. Their products, including heatless curlers, claw clips, and hair ties … all manufactured directly for this brand based on their specifications, and the company has demonstrated a strong intuition for the kind of hair products their customers will love and purchase.

This brand is unique in its success – they drive sales via social media. Hair care products are enormously popular on social media sites, and the company’s videos and posts helped them build up loyal followings on Instagram (where 34,000+ people are followers), and on YouTube, where they maintain 37,000+ subscribers. The company also posts daily on Instagram and TikTok (where they have 1,280+ followers), and the brand has grown significantly in less than four years thanks to its affiliate campaign. The company is constantly sending its products to influencers to gain product awareness, and it’s working, with sales having grown significantly since this campaign was launched.

The company now enjoys a 64% growth rate and 37% Net Profit Margins, at a time when they rely on organic traffic to send buyers to their website and maintain a very low ad spend.

This business represents a clear opportunity for a U.S. Buyer to acquire this company and then scale it quickly by expanding sales channels to include popular online marketplaces such as Amazon, Walmart, and eBay, and by having the website fully optimized for SEO keywords to boost their search engine rankings, and starting a blog that describes their products and services.

Business Broker Takeaway  

Our analysis of this business revealed several key value propositions for a buyer looking for a profitable online business with popular products and an expanding customer base in an evergreen and enormously profitable vertical. We are excited about this business for 3 important reasons:

  1. Custom Made Products. Having grown to 175 SKUs, the company has attracted a receptive audience for its numerous hair accessories, with some of the items manufactured specifically for this business based on their custom-selected dimensions, materials, fibers, and colors. Their brushes, for example, are customized with the company’s logo, and all non-custom accessories are re-packed with heavily branded packaging. Multiple products have become top sellers, and the company’s Average Order Value increased from $26 in 2021 to $38.64 in 2023. The company also markets hats and provides product bundles to boost sales.
  2. Creative Digital Marketing. Affiliates and influencers have been an important component in the company’s marketing plans, although the company has expanded its customer base in other creative ways. That includes email newsletters sent to its growing client base, PPC ads on social media sites, and well-designed product drops and postings on all major social media platforms. This has provided the company with a very high rate of organic traffic, giving them 520,400+ online store sessions in 2023, or 43,300+ average monthly visitors. That is translating into not just sales but upsells since their Repeat Customer Rate just shot up by 16.5%.
  3. Rising Profits. As new products come online, the company’s profits have steadily increased, with their Average Order Value now at $38.64, compared to $26 in 2021. The company enjoys healthy sales throughout the year, but around the holidays, profits skyrocket. In 2022, Q4 represented 48.7% of the company’s sales for the year, and by Q4 2023, it was even higher at 52.7%. With some attractive scale options available to a new owner, those numbers could improve dramatically.

The Company

Launched in November 2020, the company’s skill at social media marketing enabled it to quickly capture a significant audience for its many hair accessories, hairbrushes, scalp massagers, silk pillowcases, and popular heatless hair curlers, which has become its flagship product.

The number of repeat buyers continues increasing, and the company’s largest order to date was $314.64. Social media and the use of influencers turned out to be the ideal way to capture the attention and interest of the women who make up their main customer demographic. Their large social media following attests to that.

The company also emphasizes that their hair products are being created by professionals (a message they drive home through recommendations from influencers and affiliates), and that their products are created for every hair type. This messaging has been very effective in their social media posts.

Operations

Most of their accessories are ordered from a single large distributor, although their brushes and heatless curlers are manufactured for this company and customized with their logo. The company keeps all products stocked in a 2,500+ square foot warehouse, and ships between 52 orders a day at medium times to 112 a day during peak sales periods.

The company maintains one month’s worth of inventory at all times to keep up with demand.

This is a highly turnkey operation. The current owner works 20 hours or less each week on the business, focusing on product acquisition, communicating with vendors, and accounting. Daily tasks are handled by a full-time marketing manager and a shop manager, and a part-time order fulfillment specialist.

Having successfully recognized the massive following on social media for hair care and related accessories, the company has put together an impressive catalog of items that are giving them increasingly higher Net Profit Margins on a very low ad spend. Since hair care is a daily passion for millions, there are plenty of ways for a new owner to scale this business and make it a leader within this lucrative field.

This Company is Represented by:

WebsiteClosers.com

Technology, Internet & eCommerce Business Brokers

WC 3385

Asking Price
$ 1,300,000
Cash Flow
$ 411,215
Gross Income
$ 1,095,717
Year Established
2020
Employees
7

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