Total of 18656 firms and businesses for sale today Saturday 27th April 2024
Sold. Rapidly Growing Natural Beauty Products - Amazon Business
LISTING DETAILS
Firms For Sale ID:
34247
Vendor reference:
395978
Vendor website:
BUSINESS DETAILS
Location:
Primary sector:
Asking price:
$1,250,000
Turnover / revenue:
$1,459,655
Net profit / cashflow:
$335,667
OTHER DETAILS
Reason for selling:
Sellers have excellent experience with launching and growing new brands on Amazon but not on taking businesses to the next level. They see really good growth opportunities for the brand outside of Amazon but that is not their specialty. This business needs a new owner that can either take the business to the next level or someone that wants to maintain its current level and improve product margins. The sellers would be really happy to help pass the business on to a new owner who can take the next step with the business.
Support and training:
Sellers will provide transition, training and support as needed to ensure a successful transition and they are open to discussing any specific needs the new owner has. Sellers are fully committed to transfer their know-how to the new owner. The outsourced team will remain in place for a new owner as desired.
Business is relocatable:
Yes
Business is web-based:
Yes
Business is home-based:
Yes
PROPERTY DETAILS
BUSINESS DESCRIPTION
For sale is a natural beauty products brand providing pure & natural alternatives to mainstream cosmetic products. Essential oils and natural beauty products like these are hot products right now. The product portfolio consists of 12 bestselling products with 1-2 products added monthly. The business currently sells solely at Amazon.com utilizing Fulfillment by Amazon (FBA) advantages (fast, reliable, low-cost).
There are at least 20 additional products that would fit the brand portfolio. With each having a realistic sales potential of 10-20 units a day (some even 50-100), this could bring in an additional $120-250K/month revenue from Amazon.com alone. This is one of those scenarios where the business is solidly doing $120K/month in revenue currently and is well positioned to grow to $200K/month in revenue in a matter of 3 months (see Growth Potential section for additional details).
Brand trademark application was filed on Jan 2015. Trademark and all the designs, images, sales copy, etc. will be transferred to the new owner.
NOTE - Financial numbers are Annualized based on run rates over the past 6 months.
Highlights:
o Solely
Expansion Potential
The sellers launched this brand in November 2013 and have grown step-by-step to 100k+/month level with no external financing. Due to limited capital & fast growth condition, they have:
- Used small production runs (with relatively high unit cost)
- Used low inventory levels that sometimes have lead to out-of-stock situations (loss of revenue/profit)
- Postponed some of the new product developments (that have hold back faster growth)
- Held back larger scale marketing efforts (to avoid running out of inventory)
All the above could be solved by new owner that has access to some additional direct capital or financing options resulting in lower unit costs, better inventory levels and faster expansion opportunities. Just from additional products and lower costs this business can quickly grow to $150K to $200K/month in revenue.
Additional growth can come from:
o Traffic outside of Amazon (Social Media; PR; SEO; list building) + sales via own eStore
o Sales in retail channels & other e-commerce stores (interest from Vitamin Shoppe)
o Sales in Amazon internationally (Canada, UK, Europe)
o Social media - currently the business does not utilize social media at all so there is a big opportunity here.
o (SEE PROSPECTUS FOR ADDITIONAL DETAILS)
Market / Competition / Non-Competition Agreements
At $300 billion a year in sales, health and personal care is the second-largest retail category in the US behind groceries. About 36 million US consumers shopped online for health and beauty products in 2014, 80% up from 20 million consumers in 2010.
Key Assets & Competitive Advantages
o High Amazon rankings & great reviews - great launching platform for expansion
o Total control over their Amazon listings (owners are the only sellers of the brand)
o Outstanding Design - premium images, tailored for online sales
o Unique method for showing up in long tail keyword searches in Amazon
o Highly automated & outsourced business model