Details - Information last confirmed on January 18, 2021
Our firm presents a well-established eCommerce leader in the Woman’s Fashion & Apparel Vertical. This company creates a comfortable, trendy sports-themed clothing and accessories line based out of Dallas, Texas (although it can be operated from anywhere). This opportunity has developed a massive social media presence, resulting in rocket ship level results. The husband-and-wife founders of this business have used the power of social media to create an internet darling with 490,000 followers on Facebook, 230,000 followers on Instagram and over 270,000 opt-in email subscribers.
Through these efforts, and a smart SEM strategy, the company achieves strong margins through a powerful marketing platform, 100% focused on the U.S. female demographic. Because of the large and growing customer base, this online retailer has become a solid platform by which to launch new products and assortments for women in search for trendy, cutting edge fashion with a sports-based theme.
This target currently has 200-400 designs available on the website at any given time; as a small business, it is difficult for the owners to have more SKUs than that on its shelves. However, there are thousands of designs in the design library that are already made and ready to be used. This can be a huge asset to whomever takes over, as these designs were almost all “top-sellers” at one point in time. Many of the designs were created by the owner (graphic designer), and a few hundred were done by a graphic designer overseas.
Having a library of thousands of completed designs would save the new owner over $40,000 or more in design fees and thousands of hours of creative time. With a small additional investment in working capital, many of these SKUs could be reintroduced along side current active SKUs, instantly growing product availability, sales and earnings. Additionally, if an owner isn’t a graphic designer, or doesn’t have one on staff, in addition to the large library already present, as well as the overseas resource, a US-based graphic designer could easily be brought on to support the new owner.
The company has blasted through 2020 achieving earnings of $1.99 million on Gross Sales of $4.96 million. 2020 represented YOY sales growth of 372% over 2019. Much of this growth was driven by the 2020 implementation of Octane AI (Facebook Messenger app) that helped to increase revenue significantly. The Company also made the move to add customers to its SMS text message platform, email marketing campaigns, and push notifications, which further drove increases in revenue, with many of these customers returning for repeat purchases. Management recognizes that April and May of 2020 saw a spike in sales and earnings with the surge of specialty designer mask sales. In an effort of full transparency, the Company has provided two versions of the 2020 P&L, showing actual total sales with and total sales without the April/May mask spike. It is estimated that without mask sales, the company grossed $1.37 million in earnings on $3.67 million in sales. It should be noted, however that these face covering sales brought with them a huge new database of customers, many of whom have returned as repeat buyers.
Listing ID: WC 2212
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