The target is a very special Consumer Products Brand that has taken Amazon by storm, quickly becoming a Leading Brand in the Mens Grooming and Beard Treatment Categories. With a focus on the male demographic in such a high growth sector, this offering is a unique opportunity to acquire a fast growth eCommerce Company that has a number of retail and wholesale scale opportunities at its fingertips.
The company has built a beautiful brand presence, paying close attention to packaging, product quality and brand imaging. At the moment, the company is primarily focused on the Amazon sales channel, using the Fulfilled by Amazon (FBA) logistics model to store, pick, pack and ship all goods from Amazons distribution centers. This model keeps Operating Expenses low, allowing ownership and its team to focus less on warehouse and human capital matters, and more on brand development and scale.
The companys product line of 45 SKUs is growing and will continue to grow during the 2019 Fiscal Year, but current products offered include, beard oils, balms, brushes, combs, shampoos and conditioners. Also offered is a variety of male grooming products, including face scrubs, face washes, tattoo care balms, beard growth vitamins and beard care kits.
With thousands of product reviews already present on the ASINs, this product lineup is focused squarely on the male demographic, and yet diversified, offering low concentration across high-volume products in a number of high-demand sub-categories, including Skin Care, Grooming and Personal Care … all products are laser-focused in their specific vertical which ensures stability in revenue, year-round. No single product sold by this company represents more than 14% of revenue – a very rare accomplishment for an Amazon-centric company, where usually concentration on hero SKUs helps drive the velocity necessary for other product offerings.
This Internet Company has seen exceptional month-over-month growth since inception, having scrambled the market on Amazon - within the Beard Conditioners and Oils breadcrumb alone - this business holds 7 of the Top 20 Products sold on the platform, an astounding accomplishment considering that 50% of all eCommerce sales take place on the Amazon platform. There should therefore be little surprise in the financial results being spun off by this cash cow. With over 4,000 Lifetime Account Reviews, thousands of Product Reviews, and 100% Positive Feedback on a Five Star Amazon Seller Central storefront, the foundation has been set for an acquirer to take this business head on, and scale it 5-fold in 3 years or less. In fact, even without any further growth of the SKU assortment, without any international expansion, and even without looking to other online and offline channels for scale, the Amazon platform as a whole continues to grow annually, so having strong positioning on this platform for such a high demand segment is an exciting place to be and virtually assures continued organic growth.
The company efficiently manages inventory by mixing storage between a 3PL and Amazon. However, all sales are currently FBA at the moment, with no other shipping source necessary. As the company scales into other platforms, the table is set to use the 3PL to also ship products to consumers.
Average Order Value for the companys products is $13.50 on the current 45 SKUs offered, with 18 more SKUs under development and to be launched between May and June 2019. 2 additional SKUs will be launched in August. As highly giftable products, the company (and its new owner) will be well-positioned come Q4 for an astounding Holiday explosion. Additionally, the company has acquired 25,000+ subscribers, which is growing at about 80 new subscribers per day. This proves the product is well-received among male consumers, and more importantly, these subscribers can be leveraged to promote the brand when new products are launched, to survey for R&D, and more. The company projects that it will grow its subscriber base to 50,000 consumers by the end of 2019. Repeat Customer Rate currently sits at 25%.
Thanks to a hands-off 100% FBA fulfillment platform and absolutely industry-leading brand presentation, this Branded Amazon Retailer has a well-coordinated team and ops infrastructure in place, making this a genuinely turn-key powerhouse with all the boxes checked, nothing lacking. No knowledge of the mens grooming space is necessary to step in and take the helm thanks to a perfectly crafted platform, and ownership is offering comprehensive transition training to include new product launches already in the pipeline, and more.
And with favorable, exclusive supplier terms established, the sky is the limit for this retailer with an array of scale opportunities available, including expansion to other global Amazon markets like Canada, UK, Australia, Europe and APAC, expansion into other online sales channels, including Wal-Mart, more focus on Social Media and driving traffic through influencers to the branded Website, and expansion into B&M retail and wholesale. This brand would do quite well on the shelves of CVS, Walgreens, and Beauty counters like Sephora that are continually looking to expand their product lines in the Male Grooming space.
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