BUSINESS DESCRIPTION
A unique one of a kind deal that everyone is searching for!
For sale is a natural beauty products brand providing Pure & Natural alternatives to the mainstream cosmetics industry. The product consist of 5 popular products. The business currently sells solely at Amazon.com utilizing Fulfillment by Amazon (FBA) advantages (fast, reliable, low-cost).
The company has seen a steady climb in recent months on sales from starting at 20k a month to monthly sales rising to 40k in Nov. and Dec. in 2015. As standard with all Amazon based businesses, 30% of the revenue goes to Amazon's cuts (referral and fulfillment fees) The remaining revenue breakdown to approximately 27% COGS (cost of goods sold); 24% goes to marketing; and 16% of revenue is profit - out of which the owners have invested back into the business.
The products are solid with high Amazon rankings & great reviews as well as very low refund rates, less than 1.9% despite the 360 day "SEE RESULTS OR MONEY-BACK" guarantee, which is fiercely enforced to increase customer satisfaction and loyalty.
With the low workload, a great launching platform for expansion, outstanding design tailored for online sales as well as highly automated & outsourced business model that has been through the bumpy and most volatile first few months of operations producing profit, this business is very attractive to investors who have a management model in place as well as individuals who want a relatively passive income business they can scale.
The sellers are seasoned and successful Amazon business owners who have built this business with no intention to sell in the next 12 months and have built it to the point it's ready to scale and grow but are being forced to sell due to a non compete clause they signed from selling a separate Amazon business in Jan 2016.
In other words, this business has been built and prepared as a profit center for the owners but they are in a position where they are forced to sell at the most inopportune time for them, but the best time for a buyer!
FINANCIALS NOTE - Financials shown are annualized run rates based on the last 6 months. 2016 Forecast is $647K in revenue and $149K in profit.
Highlights:
o Solely "Amazon" traffic - huge opportunity to expand beyond Amazon.com
o 4.9 of 5 customer satisfaction rate - Top level customer service (automated+outsourced)
o 4.5 of 5 product reviews average - High quality products with the price level above the average.
o High (10-14%) conversion rate
o Less than 6 hours a week to manage at current business level (tasks automated+outsourced)
o Amazon pays every 14 days, no delays - fast cash turnaround
Expansion Potential
There are at least 15 additional products that would fit the portfolio with each having a realistic sales potential of 10-20 (some even 50-100) units a day. That would be 120-200k a month extra revenue from Amazon.com alone. The owners know what products to sell and where and who to sell them and will consult with the new owner on this. The sellers were focused on another brand (which they sold) and this brand has generated the current results with very minimal effort.
Additional growth can come from:
o By launching additional 5 products, you can achieve 70k level by August 2016 with a little effort.
o By launching additional 10 products, you can achieve 150k level by July of 2017.
o Realistic potential for cutting unit costs by 15-20%
o No lists created/utilized - huge potential for a new owner, with 2000+ new paying customers each month.
o Traffic outside of Amazon (Social Media; PR; SEO; list building) + sales via own eStore.
o Sales in retail channels & other e-commerce stores.
o Sales in Amazon internationally (Canada, UK, Europe).
Market / Competition / Non-Competition Agreements
Market Research:
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