This eCommerce business operates a portfolio of 8 brands in the women’s beauty and apparel markets. The products offered are in evergreen verticals with a long-term vision.
The company uses a subscription model where customers pay a monthly fee for access to free shipping, a free product, and a VIP website. The team constantly tests new profitable products to add to the subscription program.
Products are sourced from a private supplier in Asia, and the business utilizes a drop ship model to minimize working capital outlays and logistics management risks.
MARKETING AND KEY METRICS
The company drives traffic to its branded websites through paid media on Facebook, Instagram, and TikTok. They have a large email and SMS marketing database of over 3 million subscribers.
The business has experienced strong growth through its subscription model and constant testing of new profitable products. There is potential for sales growth by relaunching other products with lifetime sales ranging from $100,000 to $5 million.
Key metrics for the business include excellent return on ad spend, monthly recurring revenue from subscribers, high subscriber retention rates, substantial front-end gross profit, and an impressive subscription opt-in percentage.
The typical customer varies slightly by brand, but the most popular demographic is women between 45 and 54 years old. The business has a loyal customer base and a high subscriber retention rate.
BUSINESS MODEL & RESOURCES NEEDED
The two owners work 20 hours per week combined and focus on strategic decisions. The business also has a team in place consisting of a VP of Operations, Operations Coordinator, Customer Service Manager, and other roles.
The women’s beauty and apparel markets have been steadily growing. The company observes trends in the market and has chosen evergreen verticals. Examples of successful direct-to-consumer companies in this industry include Kylie Cosmetics.
OPPORTUNITIES TO SCALE
There are scale opportunities to expand the business by adding new products to the subscription program, optimizing marketing funnels, and exploring additional marketing channels.
Asking Price: $14,000,000
Gross Income: $20,525,088
Cash Flow: $3,155,751
Year Established: 2019