eCommerce Shop in Profitable Women’s Fashion Niche- 37% YoY Net Profit Growth

Asking Price:
$400,000
Sales:
$213,706
Profit:
$114,821
Year Established:
2019
Multiplier:
3.48x

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A SellerForce® offering, this is a fast-growing eCommerce company operating in the lucrative field of women’s apparel and fashion. This online clothing retail business has done an exceptional job using social media marketing to attract followers and turn them into buying customers. Having grown to nearly 275 SKUs, their satisfied customers keep coming back for new items and the shop has an impressive 38% Repeat Customer Rate.

In just three years, this company has grown to now enjoy 23% year-over-year revenue growth and 37% YoY net profit growth for their SKUs. In addition to having quality products that customers are looking for, the current ownership has demonstrated plenty of skill at social media which has brought them 7,400+ followers on Instagram. That social media platform alone is generating 99% of the organic traffic to their Shopify website.

This company has also enjoyed great success partnering with influencers who are helping them drive up engagement with customers. It’s working, and the company has been able to establish a firm place in this niche vertical in a short amount of time.

This is a tremendous field to be operating in, because clothing is something consumers care a lot about. The U.S. apparel market is valued at $368 billion, and online purchases are becoming a major segment of the industry. Retail sales from women’s clothing stores reached $39 billion in 2020, as revenue for the women’s apparel market within the United States reaching a total of $187 billion, compared to $85 billion for men’s apparel.

Sales of women’s clothing is skyrocketing because designers are getting more creative, and eCommerce stores are eager to market their designer dresses and related items. The industry is also being boosted by the increasing number of working women, rapidly evolving fashion trends, and increased spending power among consumers. The influence of social media and celebrities has encouraged manufacturers to continuously introduce new designs and styles to expand their consumer base.

Launched in 2019, the company set out to provide unique trendy fashion items to women who want to dress boldly, have fun doing so, and to feel like themselves when they’re wearing one of their outfits. Their line of clothing includes dresses, tops, jumpsuits and sets, bottoms, swimwear, outerwear, and other accessories.

The company sources its products wholesale from other online retailers and is constantly on the search for new vendors and quality products to offer. They enjoy established relationships with their suppliers which enables them to ship products quickly.

This business has proven that unique and trendy fashion can be difficult to find if pricing is too high, but the orders quickly come in when the price is as attractive as the clothes. With an Average Order Value of $80 and nearly 300 products to offer, sales are now steady throughout the year, while the company does enjoy peak sales around the holiday season. The company has also been able to target customers with marketing that appeals to their desire to start wearing something new. Their main demographics are women between the age of 20 and 35.

By marketing trendy, fun and evergreen products business in the clothing industry, the company is now shipping up to 30 products daily, a number that can increase if they have a major sale or new influencer collaboration. The company always maintains about $20,000 worth of inventory to keep up with orders.
Digital marketing has been a key to their growth. Their affiliate marketing program enables influencers to sign up for their own personalized discount code to share with customers, who get 5% off their order by using the code, while the affiliate receives a 10% commission.

These campaigns have been so successful that the company hasn’t needed to invest in a paid marketing budget. All sales have come from their affiliate marketing and Instagram posts, which are used to generate engagement with their followers and to share direct links to new styles and outfits.

The company has 73 active affiliates, and their links have generated more than $14,000 in sales since January 2022. The company likewise posts daily on Instagram, and this is helping to bring them 8,000 unique monthly visitors to their website.

Another tool they use effectively is email marketing through Shopify. The company has built up 1,780+ email subscribers and 440+ SMS text marketing followers, and they send out regular messages to all of them with updates, sales, promotions, etc.

This site has become very turnkey, and the current ownership spends as little as 20 hours per week operating it, often focusing on social media management, ordering new products, and doing photo shoots for the website. Outside of a professional photographer, the company has no employees, and a significant part of the owner’s responsibilities is spending time online looking for new styles, and traveling to discover new and exciting fashion lines.

In a short period of time, this company has made a strong connection with their customers, giving them clothing options that appeal to a sense of who they are and what their values are. Their marketing has been a textbook example for others.

Contact SellerForce today to learn more about this company and how it’s likely to be just the right fit for your business portfolio.

Listing ID: SF115

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