Exciting opportunity to take over starter site within the beauty niche.This private label brand, Lanbena, has proven their success in just a few short months, generating over $50,000 in net profit on 70% gross profit margins.
Tell us a little about yourself. What’s your background? How did you start with this business concept?
I’ve personally been doing eCommerce since late 2017. I got into it through a friend of mine that was successful and has been doing it since 2012.
I currently work on a passionate brand of mine that I would like to devote more time too. I got into drop-shipping initially as a way to build capital, it’s a lower risk method of building a store as one does not need to order inventory up front.
How and where is your product made and sourced? Is the product drop-shipped or are you holding inventory?
Our product is currently being drop-shipped from a supplier based in China. One can hold inventory if desired, but I prefer this model as it requires less capital up front and the customer experience is still maintained on the front end.
What is the return on ad spend? Average order value? Return customer rate? Product return rate?
We are averaging a 3-4 ROAS.
We scaled this store to over $100k in 2 months (August & September).
We were able to take home just over $50k net, which is pretty phenomenal.
As for returns, we average less than 1%.
Our return customer rate is at around 2-5 percent. Not enough time has passed to really see the full potential for returning customers.
How much time does it take to run the business, who else is needed on the team, and what, if anything, is automated?
As of now, the business is semi automated, we have a virtual assistant that manages emails and our fulfillment company manages and ships orders. The owner would manage ads, add new products, manage the social media page, etc.
Overall, I would say it takes around 4-6 hours per week.
Can you list a few opportunities for a potential new owner to continue growing the business? What would be your primary tactics if you were to keep the business for the next 12 months?
As for Facebook and Instagram ads, making new creatives will refresh the target audience and prevent fatigue.
I would also try to take on beauty influencers on Instagram. Instagram hold a lot of weight in terms of skin care collaborations and working with micro influencers can be extremely affordable (often just needing to send free product).
We already have the branding in the packaging so this would help. SEO on google search is always great, ranking for organic traffic is a necessity. Getting someone to do it would be crucial