A thriving online haircare retail business has successfully capitalized on the rise of e-commerce, managing a high stock turnover that has led to significant revenue growth. Over the last year, revenue nearly doubled from AU$47,000 in July 2021 to approximately AU$89,000 by June 2022. Situated near key suppliers, the business benefits from lower stock holdings, allowing quick turnaround times for order fulfillment, usually within 24 hours. Operational simplicity characterizes the business, which can be managed by a sole trader, with additional help during peak seasons. Tasks include stock purchasing, order packing, customer service, social media management, and bookkeeping.
The business currently offers approximately 575 products, focusing primarily on top sellers due to strategic stock management linked to supplier proximity. A single staff member works 38 hours weekly, and there is potential to further streamline operations by outsourcing order fulfillment to a third-party logistics partner, if desired.
Financially, the business maintains a customer return rate of 14% over recent months, with paid Google shopping being the primary traffic source, achieving a cost per acquisition/ROAS of $1.15. Growth is evident, as each quarter's financial data shows increased revenue. Shipping capabilities across Australia widen the customer base, with additional potential seen in expanding product ranges and exploring the beauty category. Initially started as a side project, the business would benefit from dedicated full-time ownership to continue driving its growth and capitalize on emerging opportunities.
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Before making an offer
1. Look for verified sellers. Sellers should verify their email, phone, and government ID. When a seller has completed all verifications, we identify them with a checkmark like this:
2. Review financials. Financials are seller-provided inputs. Always ask for verified financials. Ask for a tax return or request access to their dashboard. if it’s an ecommerce store get a transaction report.
3. Review traffic. Sellers can grant you access to Google Analytics. Ask for read-only access to verify site traffic.
4. Schedule a call. Communication is key. The best way to find out more is to speak directly with the seller. For your protection, keep all communication within Flippa.
5. Make the offer on Flippa. We’re here to help. Flippa does not charge buyers and by making an offer on Flippa you’ll get access to our post-sales support team.
1. Agreements & Contracts.
Connect with a US-based lawyer or purchase asset-specific template legal documents via Flippa Legal.
2. Conduct Due Diligence.
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