Business Description
For sale is a 5-year-old California company offering a comprehensive drop-ship program for online retailers specializing in women’s fashion. The company has relationships with multiple vendors from the Los Angeles Fashion District, ensuring inventory is always fresh and available. The seller is including over $1M of inventory in the sales price! It has three revenue streams: 1) a monthly membership fee ranging from $100 to $400, 2) the sale of clothing, and 3) assisting with “social selling.” Eighty customers currently create recurring revenue from the monthly membership fee.
Until 2023, the company experienced a steady increase in revenue and earnings. When the economy took a turn, shoppers had less disposable income to spend on clothing. To help combat this issue, the company added new stylish and budget-friendly vendors, offering clothing for $10 less per item wholesale than previously. They also reduced parcel and cleaning expenses, which increased the overall margin. In 2024, the seller has dedicated more attention to subscription revenue for the business, leading to a significant increase in monthly subscribers since the new year.
Staying with the buyer is 1 full-time manager, 2 part-time employees, and 2 contractors. To maintain operations, the buyer should expect to work around 28 hours per week and be an experienced business operator who is familiar with fashion trends and negotiating with designers. No specific licenses are needed.
| 2021 | 2022 | 2023 | |
| Revenue | $2,722,262 | $3,656,504 | $1,530,302 |
| Earnings | $891,869 | $1,162,615 | $765,211 |