Women's Basics Apparel

Women’s Basics Apparel Brand Boasts 249K Inventory, 51 AOV, and 28% Repeat Order Rate

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This eCommerce brand is a leader in the women’s basics apparel category. With 10 years of experience, they have built a massive social media following and have $249k worth of included inventory. They offer affordable clothing with a focus on new arrivals and high-volume items that already sell well. Their marketing strategy includes a strong presence on Instagram, Facebook, TikTok, and email marketing. The business has a fast delivery process and maintains strong relationships with vendors and suppliers. The customer base consists of women between 18 and 35 who enjoy shopping online and regularly updating their wardrobe. With steady sales throughout the year, there are opportunities to further scale the business through refining marketing strategies, expanding product offerings, and targeting new customer segments.

OPERATIONS

The company operates on the Shopify platform and maintains a 100% stock model. They hand-select and stock women’s basics apparel that can be mixed and matched with seasonal items. Orders placed before noon CST are shipped the same day or the next business day. The owner works around 20 hours per week on purchasing, marketing, growth strategy, and ensuring smooth operations at the warehouse. They have a full-time warehouse manager, two part-time warehouse workers, and one part-time staff member for social media content creation and management. The business ships 50-100 orders daily from their warehouse.

The business has strong vendor and supplier relationships in the United States, even though products are sourced internationally. They use online wholesale shopping to place orders and maintain a 100% stock model with $300,000 of inventory on average. Orders are shipped daily from their warehouse, and inventory orders are placed weekly as necessary to restock. The owner closely monitors sales and adapts inventory accordingly.

MARKETING AND KEY METRICS

The business has a strong marketing presence on social media platforms like Instagram, Facebook, and TikTok. They have a following of 445,000 on Instagram, 110,000 on Facebook, and 200,000 on TikTok. They also work with content creators and influencers to drive traffic and run retargeting campaigns. Additionally, they utilize email and SMS marketing, which generate roughly 42% of revenue. The business allocates a daily budget of $500 for paid ads, resulting in 50-100 sales per day. They also utilize Pinterest ads and have plans to restart TikTok ads once additional inventory is restocked.

The business primarily sells through their website, which is powered by the Shopify platform. They also have a strong presence on social media platforms like Instagram, Facebook, and TikTok. There is potential for growth by expanding into other sales channels such as marketplaces like Amazon or partnering with influencers for affiliate marketing. By further optimizing marketing strategies and targeting new customer segments, the business can continue to grow.

The key metrics for this business include a $51 average order value (AOV), a 28% repeat order rate, and a 3X return on investment for paid ads. Email and SMS marketing generate approximately 42% of revenue. They have a large social media following on Instagram, Facebook, and TikTok, resulting in robust organic traffic.

The typical customer for this business is a woman between the ages of 18 and 35 who enjoys shopping online and being part of a community. They are fashion-conscious and regularly update their wardrobe with new arrivals and restocks. The customer base is primarily located in the United States, but there may be opportunities to expand internationally.

BUSINESS MODEL & RESOURCES NEEDED

The business has a team consisting of a full-time warehouse manager, two part-time warehouse workers, and one part-time staff member for social media content creation and management. Additionally, the business works with content creators on a month-to-month basis. The owner, who works around 20 hours per week, is motivated to train a buyer for continued success.

THE INDUSTRY

The Women’s Basics Apparel industry is a thriving market with a strong demand for affordable, trendy clothing. With the rise of social media and online shopping, consumers are always looking for new arrivals and options to update their wardrobe. Examples of successful companies in this industry include Fashion Nova, ASOS, and Boohoo. The market is highly competitive, but this business has established itself with a dedicated customer base and strong social media presence.

OPPORTUNITIES TO SCALE

There are several scale opportunities for this business. One opportunity is to expand the product offerings to include more variations of women’s basics apparel and seasonal items. Targeting new customer segments, such as different age groups or geographic locations, can also drive growth. Additionally, exploring new sales channels and partnerships, as well as investing in more advanced marketing strategies, can further scale the business. Examples of scale opportunities could include launching a subscription box service, opening physical retail locations, or expanding internationally.

Asking Price: $649,000
Gross Income: $1,605,685
Cash Flow: $207,257
Year Established: 2013
Employees: 4

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