Featured Listing: Shop Eco Beauty – Amazon FBA

Featured Listing: Shop Eco Beauty - Amazon FBA

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Tell us a little about yourself. What’s your background? How did you start the business?

I learned how to successfully launch a solid Amazon store from my past 6 years of doing Amazon business. This brand was created based on 3 key principles of profitability: 1) Selling consumable products (beauty in this case) – so customers come back for more product(s) each month when their serum gets used up in 3 weeks – it generates returning client base and makes the brand grow organically with time 2) 2nd principle was choosing premium/ high-end/ luxurious/ higher-quality/ upscale product types and designs – so the brand can charge the premium price of the end consumer and enjoy a very healthy 70% profit margin on each sale. 3) Profitable segment/ target market being: females, age 30-60 years old, assuring they are at an age where they can afford premium products that solve their “problem” (ageing skin). Also, this target market likes (and can afford to pay extra for the quality) to go organic, natural, vitamins-infused, nutrient-rich, superfood oriented, eco-friendly, etc – which are all attributes of this brand. These 3 above key principles were applied when I created this brand identity and profile so the path to success was strategically planned at inception.

As an e-Commerce business, where are your products made?

All products are made by 1 absolutely amazing supplier. The supplier is fast (2.5 weeks lead time!), responsive, very professional and in business for 25 years (big, family-run beauty direct manufacturer so the sourcing prices are as low as they can ever go, leaving an even bigger profit margin for Amazon sales). The supplier has a large catalogue of over 1,000 more products that could easily be added to the brand if a new owner wants to grow the business and amplify earnings. Moreover, the supplier does custom formulas and asked me many times if I want to add (for marketing purposes) any special ingredients to the products, like a special (currently hot) essential oil or any special ingredient that could further increase marketing potential. The supplier is a huge asset of this brand and business and I already ensured all prices will be kept for the new owner after taking over.

As a SaaS business, what can you tell us about your Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC)

So far organic customers acquisitions only – so no cost of acquisition. I also have a fairly big email list of beauty buyers that the new owner will inherit as one of the assets at sale.

How have you marketed the product and where are your customers originating from?

The brand was well-optimized on Amazon via strategically putting key keywords in important places in the back end of Seller Central (something I learned in 6 years of doing Amazon, will be happy to share all my strategies, knowledge and resources during 1 month of post-sale training & support period I offer) so all heavy lifting has been done and the foundation has been laid out for growth from here. Amazon takes care of the traffic and sending leads to the listings. The brand has not yet taken any advantage of additional income streams and growth opportunities like adding its own Shopify store, or certain promotional offers on Amazon too – lots of room to take the brand to the next level.

Is the asset on your listing owner-operated, how much time does it take to run the business, who else is needed on the team, and what is automated?

Yes, only owner-operated (laptop-lifestyle principle, all automated already), no employees, no office, no headaches 😉 Takes around 5 hours per week to manage, often less. The set up as low overhead as it gets for an FBA business model, where inventory is stored and shipped to customers by Amazon (no staff needed) which makes it low to no workload and all operations simplified for a new owner (if kept as a passive income stream and not for scale and dynamic growth which are also a possibility).

What does someone need to do to continue operating the business in its current form?

Logging in to the Amazon dashboard every few days to ensure the inventory is there ahead of time so products continue to sell without out-of-stock interruptions – mainly that. It’s a highly automated model (Amazon takes 25% for handling shipping and most customers inquiries about returns, replacements, anything FBA shipping related is outsourced and 100% hands-off). Customer direct messages are rare (once in every 2 days on average) because females generally know how to use beauty products 🙂 It’s a turn-key set-up, ready to scale or maintain for passive cash flow.

Can you list a few opportunities for a potential new owner to continue growing the business?

So many! The brand has a lot of room for growth if the new owner is willing to put in the work and scale it (or if they hire some experts freelancers to do that for them; I will be able to point at some resources there):

1 – Turning on Amazon ads (one of the biggest untapped opportunities to amplify earning but would require 30-45 minutes a day to manage ads that’s why I have not been doing them as the principle was to keep the brand passive and on auto-pilot; I can provide post-sale training on how to manage ads profitably if the new owner wants to grow the brand)

2 – Expanding to other marketplaces with existing product selection (Walmart, Jet, Etsy; simply listing the existing products on other platforms or/and on social media),

3 – Capturing additional sales via creating own Shopify site,

4 – Driving Google, Youtube, and Facebook traffic to the listings or own Shopify or Amazon store (lots of traffic agencies out there where this could be outsourced), I would recommend some in post-sale training and support month together).

5 – Creating A+ cross-selling content to increase sales at checkout (I will show you “the how”),

6 – Adding cross-selling coupon codes or promo codes to encourage customers to buy sets to increase sales,

7 – Expanding product line with more products since the supplier has an amazing catalogue of over 1,000 options with even more amazing prices,

8 – Offering existing product selection internationally on Amazon Canada, UK, Australia, etc by adding more countries to the existing US Amazon dashboard.  

To name a few growth opportunities 🙂

What has been the evolution of this asset since its launch?

Successful launch to own email list (buyer will receive it as one of the assets). From there, the brand has been steadily and organically trending up due to products being consumables, which encourages repeat customers. 

The products are high end and of high quality (natural, nutrient-rich, vitamins-infused, with environmentally-friendly packaging) and the branding (packaging) is done in a premium and upscale way. 

Therefore with time the brand naturally gained traction with Amazon and among customers because the products are just superior, plant-based, with anti-ageing properties and eco components – making them a solid choice for the end consumer.

How does this business make money? What are the current revenue streams?

Amazon FBA

What marketing channels are most profitable for the business?

Amazon FBA

How does the business currently acquire customers and what is your breakdown for marketing costs?

Amazon FBA

How big is your current team? How many people does it take to run this business?

0 employees

What’s the reason for selling your business on Flippa?

The seller got admitted to a prestigious international university abroad and needs to shift her time and focus to meet the demands of challenging exams and lab work ahead. Details upon request 🙂

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