Overview

Try Youth Skin is a skincare brand that operates under a branded dropshipping model, primarily selling collagen masks to women looking for youthful, radiant skin. The business has achieved impressive revenue figures of $2,587,221 in its first year, with a profit of $306,522 and an average order value (AOV) of $57.00.

The business has been successfully scaled through Facebook and Google Ads, with a customer base of 92,887 and a highly engaged email list of 92,071 subscribers. However, there are concerns surrounding customer retention, operational efficiency, brand reputation, and marketing scalability.

The seller is seeking an exit, citing a shift in focus to another project. The business presents an opportunity for expansion through international scaling, a subscription model, and product line diversification. However, potential investors must assess challenges related to customer sentiment, product quality, fulfillment efficiency, and overall brand trust.

Key Insights

Website Performance & Metrics

• Website Speed: The website loads efficiently and is well-branded but lacks strong social proof.

• Product Variation: The business offers only one primary product (collagen masks), which may limit repeat purchases.

• AOV & Customer Lifetime Value (CLV): The AOV is $57, but the repeat customer rate is low at 4.42%, suggesting limited customer retention.

• Website Conversion Rate: No clear data available; further analysis is needed to determine whether traffic effectively converts into sales.

• Brand Positioning: The brand is positioned as a premium skincare solution, but customer sentiment suggests concerns about product effectiveness.

• Marketing Efficiency: Heavy reliance on paid ads (Facebook & Google Ads) with no significant organic growth strategies.

• Customer Acquisition Cost (CAC): Not provided, but given the high spend on paid ads, scalability may be challenging without a more sustainable customer acquisition strategy.

Social Media Presence:

• Facebook: 909 followers (low engagement)

• Instagram: 5,238 followers (low engagement, possibly bought followers, as posts receive only 10-12 likes and minimal comments).

Financial Insights

Revenue & Profit Trends:

• Revenue peaked in August 2024 at $567,945, with a profit of $144,431.

• After August, revenue and profit declined significantly, suggesting that a marketing campaign drove the spike, but retention failed.

• The profit margin is 12%, which is reasonable for eCommerce but could be improved with better fulfillment and operational efficiency.

Multiples:

• Revenue multiple of 0.2x (low, suggesting limited growth potential or high operational costs).

• Profit multiple of 1.5x (low, indicating the business may be undervalued but also poses risks).

Marketing Performance

• Paid Ads: The business relies on Facebook & Google Ads to drive traffic. No organic or influencer marketing strategies are evident.

• Customer Engagement: Email list of 92,071 subscribers, but low engagement on social platforms suggests potential issues with brand trust and authenticity.

• Customer Acquisition & Retention: Low repeat purchase rate (4.42%) suggests that customers do not find the product compelling enough to return.

Operational Efficiency

• Dropshipping Model: The business currently operates under a branded dropshipping model, which provides a low overhead structure but results in slow shipping times and quality control issues.

• Fulfillment: The seller has suggested the potential to transition to a U.S.-based warehouse for faster shipping, but this would require additional investment.

• Customer Service: Numerous negative reviews indicate unresponsive customer support, which damages brand trust.

Customer Data & Relationships

• Email List: The brand has a large email list (92,071 subscribers), which is a valuable asset for retargeting.

• Trustpilot Reviews:

  • Overall rating: 2.4/5 (Poor).

  • Complaints about product quality, shipping delays, and lack of customer support.

  • A lack of positive customer feedback may hinder future growth and marketing efforts.

• Scam Detector Score: 27.6/100, indicating potential trust issues with the website’s credibility.

Legal & Compliance

• Trademark Registered: The business has secured trademark protection, which adds brand value.

• Operational Transparency: Domain ownership details are hidden, which is not uncommon but may raise concerns regarding business legitimacy.

• Fulfillment from China: Potential regulatory concerns if expanding to certain markets with strict skincare import regulations.

Challenges Identified

Low Customer Retention & Engagement

• Repeat purchase rate of 4.42% is extremely low for a consumable product.

• Trustpilot reviews suggest negative customer experiences, slow shipping, and poor customer service.

Marketing Sustainability Issues

• The business heavily relies on Facebook & Google Ads, making it vulnerable to ad cost fluctuations and policy changes.

• Social media engagement is weak, suggesting followers may not be genuine or that the content lacks engagement strategies.

Operational Weaknesses

• Dropshipping models leads to shipping delays and potential quality inconsistencies.

• No existing warehouse or inventory management strategy, leading to fulfillment inefficiencies.

Brand Credibility & Trust Issues

• Poor customer reviews (2.4/5 on Trustpilot) undermine the brand’s reputation.

• The Scam Detector score of 27.6/100 signals a lack of credibility in the marketplace.

Limited Scalability Without Additional Investment

• No clear plan for organic growth; the brand lacks strong influencer or SEO-driven marketing.

• Potential capital needed to shift fulfillment to a U.S.-based warehouse for better logistics.

Recommendations

Revamp Customer Retention Strategy

• Implement a subscription model to encourage recurring purchases.

• Improve customer service responsiveness and address refund policies.

Diversify Marketing & Reduce Paid Ad Dependency

• Develop organic marketing strategies (SEO, influencer collaborations, community engagement).

• Improve social media engagement by using real customer testimonials and interactive content.

Improve Operational Efficiency

• Explore transitioning to a U.S.-based fulfillment center to improve shipping times.

• Implement better supplier quality control measures to enhance product reliability.

Enhance Brand Credibility

• Address negative Trustpilot reviews and actively seek positive customer testimonials.

• Increase transparency in company operations to improve credibility.

Conclusion

Try Youth Skin presents strong revenue potential but faces serious challenges in customer trust, retention, and operational efficiency. While it has demonstrated significant revenue growth in its first year, the low multiples (0.2x revenue, 1.5x profit), poor customer reviews, and reliance on paid ads indicate significant risks.

For a prospective buyer, this acquisition could be highly profitable if operational weaknesses are addressed, but it requires strategic repositioning to build a sustainable, long-term brand. Further discussions with the seller are necessary to clarify revenue trends, ad spend efficiency, and potential reasons for declining customer satisfaction before making a final decision.