Launched in 2014, this niche apparel ecommerce business sells a range of swim-related clothing and accessories for both men and women. The business stands apart from the competition because its lifestyle swimwear products allow swimmers to show off their unique style and personality. Since its inception, the company has diversified its product offerings and experienced a substantial increase in sales. Despite this, the business is listed at a low 1.7x multiple.
Since the owner has streamlined operations and outsourced the most time-consuming activities, he spends approximately 15 hours per week running the business. His hard work has created the perfect foundation for a new owner to scale. The owner recently started a new business and would like to use the sale proceeds as a large capital injection.
The sale includes the customer database, social media accounts, mailing list, intellectual property, and all supplier relationships. If you are looking for a profitable ecommerce business with significant growth potential and easy operations, this business could be the perfect investment.
The business derives 100% of its revenue from product sales, and the customer base is primarily located in the United States. The products are only sold via the business’ website and its substantial social media following drives 42% of the web traffic. The average order amount is $37, and over the trailing twelve months, the gross revenue was approximately $363,000.00 and the net profit was approximately $137,000.00.
The business uses a dropship model and the products are shipped directly from its fulfillment centers. There are two suppliers that are used for on-demand and stocked inventory respectively. All relationships will transition to the new owner, and the suppliers have additional SKUs available for easy product expansion.
The owner spends 15 hours a week operating the business. This time is primarily spent managing operations, marketing, handling customer inquiries, and liaising with the fulfillment center and suppliers. The business also has freelancers that handle product design. All relationships are transferable.
There are several potentially lucrative growth strategies a new owner could pursue. The new owner could expand the product offerings. The business has quality suppliers in place that already manufacture apparel and accessories that are not currently being sold by the business. A new owner could easily add these products to the current offerings.
The new owner could also expand to other ecommerce platforms. Currently, the business only sells products via its website. By selling the current products on platforms like Amazon, eBay, Walmart, or Zulily the business could increase its sales and revenue significantly.
Lastly, a new owner could grow the business through advertising and diversifying traffic sources. While the business already has a strong Facebook and Instagram following, it could utilize other picture-centric social media platforms like Pinterest to drive traffic and increase brand awareness. Google Adwords and Google Shopping could be used to grow sales as well.
Sale Pending: No
First Seen: Sat, Oct 7th 2017
Last Updated: Tue, Oct 10th 2017