This nascent drop ship ecommerce business has swiftly made a name for itself in the women’s activewear market. From its inception in May 2019, this ecommerce business has demonstrated explosive growth right out of the gate, as monthly revenue has grown at a CAGR of 39%. In fact, they just recently crossed the $3.5MM monthly revenue mark during April. The company does not even need to worry about managing inventory as its main supplier drop ships the website’s products directly to its customers. Strong drop ship factory relationships are very important, and the company’s discounted pricing is just one of the main factors leading to its great instantaneous success. Despite the COVID pandemic this year, business is booming and with average gross profit margins of 68%, net profit margins of 13% along with average monthly sales north of $1.7MM, net profits of $220,000, as this online retailer is extremely nimble, efficient and immensely profitable.
The online retailer’s mission is simple: To create activewear that makes women feel sexy, stylish, and comfortable at an affordable price. The company has forged invaluable drop-ship relationships with suppliers offering prompt customer delivery, which allows for a business model that is not capital intensive as it does not require the owner to hold inventory. Therefore, the company has promptly established a strong presence in a thriving industry, anticipated to double to $254 billion by 2026, growing at a staggering CAGR of 8.2% over those next several years. The rising health consciousness among women, especially those with an increase of disposable income, becoming increasingly active in sports and fitness activities, has helped this market segment to substantially outpace all other apparel sectors. Even with its impressive immediate growth and cash flow, there are still several growth opportunities which give this business strong potential moving forward. Ultimately, this turnkey business can be relocated anywhere in the world and is a high-quality acquisition opportunity offering plenty of potential growth and upside for overall return on investment.