The business is a rapidly expanding e-commerce company focusing on a unique cosmetic product, a color-changing 4-in-1 foundation. It is distinguished by an impressive 75% gross margin and operates on a low working capital model supported by a strategic performance-marketing approach. In its initial nine months, the company reported net sales of $3.2 million and an EBITDA of $380,000. It is on a trajectory to achieve $4.8 million in revenue and approximately $600,000 in EBITDA by 2025.
The company's operational processes rely on a dropshipping model, with a partner in China, Yiwu City Yuedan Trading Firm, handling the warehousing, quality checks, and direct-to-consumer shipping of finished goods. Orders are seamlessly integrated from their digital platform to the warehouse, enabling rapid processing. A significant portion of shipments reaches customers within 7 to 13 days through YunExpress, with the remainder delivered within 20 days. An additional logistics provider, Sender, ensures tariff-friendly shipping during high-demand periods, ensuring stable profit margins. This business model is supported by suppliers invoicing 3-5 days after customer payment, maintaining a positive cash flow and minimizing working capital requirements.
Financially, the company achieved $3.2 million in net revenues with a 72% gross margin and a net profit of $381,000, reflecting a 12% net margin over the initial nine months of operation. Additional business details are accessible upon agreement to a non-disclosure agreement.
Flippa’s platform is free for buyers. Here are our tips for first-time buyers:
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.
You can conduct this yourself, or use our new official verification and assessment service. We provide a deep analysis, identify hidden risks, and independently assess the value of the business. Packages start at $1,000. Learn More