10 Year eCommerce Brand in Women’s Apparel, Shoes & Accessories – 10,000 Brand Ambassadors – Over 1 Million Social Media Followers – 44% Repeat Customer Rate

ValleyBiggs® presents a decade-old dynamic eCommerce fashion retailer with over 1 million social media followers and 100 million in online sales through their Shopify store. The company boasts an enormous catalog of products, with bestsellers including denim tops and basics. Additional popular items are dresses, rompers, activewear, swim, loungewear, accessories, and shoes. The business primarily sells other popular boutique brands but has also launched its own line successfully. That, of course, equates to many styles, and new styles are uploaded daily.

The business utilizes an almost entirely stock inventory model, with the remaining 4% Drop Shipped. Products are stocked in and shipped from the company’s office and warehouse. In 2021, 487,472 orders were shipped, which equates to 1,900 per business day. The current lease ends in September 2023, offering a buyer the opportunity to reduce the building size, remain in the current location or relocate anywhere else in the country.

On average, $1.5 million cost of goods is maintained now that supply chain issues have been largely resolved. That amount is typically eight weeks’ worth of inventory. In 2021 management purposefully overbought to combat 2020 issues with obtaining stock during early covid and due to massive year-over-year growth and demand. In 2022, they have scaled back buying to focus more on the bottom line.

Sales are robust year-round, and the company historically enjoys a significant spike in Q4 for fall and winter fashion needs and the holiday season. The typical customer is a woman between 28 and 45. She is likely a mom who loves to shop online but is also looking for a connection and community where she shops. She is also budget conscious but loves the thrill of daily drops and potential fast sellouts. This customer spends much time on social media and will visit the website regularly to see new products.

Seeing the dedicated customer base and a desire to have their customer earn while sharing their products, a custom Ambassador Program was launched bringing in over 10,000 Ambassadors. Since launching the program, the business has found its Ambassadors to be some of its best customers. Many will take the entirety of their clothing budget and allocate it to this company instead of other sites or stores once they join.

Lead generation is driven by the Ambassadors, as well as a loyal social media following of more than one million, paired with email campaigns to 430,000+ subscribers. Additional methods involve SMS blasts, abandoned cart reminders, and back-in-stock notifications. Very little is spent on Facebook and Instagram advertising currently due to a keen focus on the Ambassador program wherein commission is only paid for actual orders placed. Those orders are undoubtedly well received, given the 44% repeat order rate and glowing online reviews.

The founders each work around 20 hours weekly on the business, their primary tasks include creative and marketing strategy, buying, and general oversight of the operation. A team of customer service associates and warehouse operations is in place to support the business. The founders are looking to retire and believe a strategic buyer with digital marketing experience can take this brand to the next level. They also believe their business model and Ambassadors would be keen to promote more complimentary products and brands.

As prosperous as this well-oiled business is, there are many scale opportunities at hand. One that jumps out is expanding the Ambassador program. Now only three years old and responsible for immense growth, it still has plenty of room to develop. By marketing aggressively and effectively, it’s reasonable to expect the program to double in size, with revenue following suit. Other untapped prospects include PR efforts, strategic paid advertising, international expansion, and selling on additional eCommerce platforms such as Amazon.

A substantial increase in revenue and profit margins could be obtained by bringing graphic tee design and production in-house to be printed on demand. Many competitors utilize this model very successfully.

This business has reliable systems, an excellent team, a public appetite for its products, and enviable financials. Few special skills are required for a buyer to transition seamlessly into an ownership role. The existing management is motivated to assist wherever necessary to ensure continued prosperity and growth.