trendy handbag or clutch

Multi-Branded Ecommerce Retailer Selling Directly to Consumers – 99% of Sales from Big Box Stores

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This business is a Multi-Branded eCommerce Retailer selling Wholesale and Direct to Consumer. This Internet Company specializes in Women’s Clothing & Accessories, primarily bags, clutches and totes. This trendy brand offers over 455 SKUs ranging from handbags, small leather goods, to belts, outerwear and more. Focusing on wholesale orders from mainstream big box clients such as Saks, Nordstrom, and Bloomingdales, this retailer is a perfect wholesale plugin for existing fashion retailers in any adjacent or aligned vertical, bringing bolt-on revenue to the table rapidly and easily.

OPERATIONS

The company sells its products both wholesale to big box clients and directly to consumers through its branded websites. The majority of sales (99%) come from big box clients like Saks, Nordstrom, and Bloomingdales. The company has a warehouse for storing minimal inventory and ships all orders directly to customers. It has a 70% repeat customer rate and receives 11,000 unique visitors per month.

The company’s supply and logistics involve sourcing products from manufacturers and suppliers and storing minimal inventory in their warehouse. They ship all orders directly to customers.

MARKETING AND KEY METRICS

The company already has a robust online marketing campaign in place, including social media and email marketing. It has an existing email database of 5,000 contacts and can further scale through a more full-featured social media presence and targeted email campaigns.

The sales channels for this business primarily include wholesale to big box clients and direct-to-consumer sales through the company’s websites. There is potential for growth in sales channels through partnerships with other retailers and expanding into new online marketplaces.

Key metrics for this business include sales volume, customer acquisition cost, customer lifetime value, repeat customer rate, website traffic, and conversion rate.

The customer base for this business consists of both wholesale buyers from big box clients and individual consumers who purchase directly from the company’s websites. The company has a 70% repeat customer rate and aims to attract new customers through its marketing efforts.

BUSINESS MODEL & RESOURCES NEEDED

The company has 2 employees managing various aspects of the business, including operations, marketing, and customer service.

THE INDUSTRY

This business operates in the women’s clothing accessories industry. The industry is highly competitive and constantly evolving. Examples of other companies in this industry include Forever 21, H&M, and Zara. Women’s clothing accessories are in high demand and offer opportunities for fashion retailers to expand their product offerings and reach new customers.

OPPORTUNITIES TO SCALE

There are several scale opportunities for this business, including leveraging retail giant Amazon for direct sales and utilizing FBA fulfillment. This can lead to an immediate increase in revenue and decreased labor hours. Additionally, expanding the social media presence and implementing targeted email marketing campaigns can further drive sales and growth.

Asking Price: $552,000
Gross Income: $1,200,000
Cash Flow: $130,000
Year Established: 2016
Employees: 2

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