Male college student counterattacks Amazon, with annual sales soaring 7 times

A male college student in the United States used what he learned to make a pure natural lip balm. He started it as a sideline business and sold it on Amazon and his own website. The market demand for this product was large, and he soon sold $15,000 in one day. After he dropped out of school to start a full-time business, the company's performance soared, with sales increasing by about 7 times a year.

Original lip balm sales surge

Kobe Harris started his own lip balm company, KOBEE'S, on his bedroom floor in 2019 while he was still a college student, with no plans to drop out of college immediately to start this business as a side hustle.

When he first started the company, he asked his mother for $200 and bought some ingredients on Amazon. It was summer vacation, and while working as a lifeguard, he used these ingredients to test lipstick formulas on the floor of his bedroom at home. After work, he stayed in the room to study and make 50 kinds of balms, which he then gave to his co-workers to try out.

Hard work paid off, and Harris earned $3,000 one day in the first summer. "This is the most money I've ever seen in my bank account in my life. It hit, and I was so excited." Harris said.

After a good start, his sales continued to grow, and by the end of his first summer, he was selling $15,000 worth of products a day. This encouraged Harris to drop out of school and spend more time researching and making lip balm.

By the new school year, Harris's company had become so successful in sales that he went full-time to start a startup called KOBEE'S, which sells its products primarily on Amazon and the KOBEE'S direct-to-consumer website.

In the first year, KOBEE'S's operating income was $30,000, and in the second year, it was $200,000, a seven-fold increase . Last year, the company's operating income was about $860,000, and this year's operating income has reached $1.5 million.

Today, KOBEE'S is a profitable startup that is on track to generate nearly $4 million in revenue and approximately $750,000 in profit by the end of 2024.

On Amazon, KOBEE'S lip balms are selling well, with one product having more than 400 reviews and a rating of 4.6, with many customers leaving positive reviews. One customer wrote: "I've been using this lip balm for about 6 months, and it has quickly become my stable lip product. This lip balm moisturizes longer than any other lip balm I've used, and I don't have to reapply it often, and each lip balm lasts a long time. Especially considering sustainability, I really like that KOBEE'S products are packaged in non-toxic sustainable products."

Among other reviews, many customers mentioned that the lip balm is additive-free, does not require repeated application, and keeps lips smooth. Many people also praised the sustainability of the product itself.

Harris revealed that he has slowly learned better marketing and is confident in the new marketing strategies he has learned (including social media marketing).

Expand product lines and increase revenue

Harris founded the company headquartered in Las Vegas. As the company continues to improve, KOBEE'S not only focuses on its core original products, but also expands more series of products, from lip balm and scrub to hand cream and lotion stick. The styles of these products are obviously modern and cost-effective. For example, a pack of balm costs $50 and a neck cream costs $42.

The company currently sells lip balms, lotions, lip scrubs, cuticle butters and hand creams , which are made from four ingredients : beeswax, coconut oil, sunflower oil and mango butter. According to the company's website, these products are packaged in compostable packaging and retail prices range from $5 to $42. The products are healthy and environmentally friendly, keeping the user 's lips beautiful and smooth while preventing plastic debris from polluting the environment.

Why did you think of selling all-natural lip balm? Harris said that his idea came to him when he was in college. Initially, he wanted to work in the medical industry. At that time, he worked with a professor of sustainability to study packaging products, and his interest changed .

Especially when he saw the pollution in and around the big city, the idea of ​​starting a lip care brand came to him. Through KOBEE'S, his goal is to help clean our oceans and lakes, plant trees and reduce deforestation, and provide cleaner air for future generations.

Harris' mother, also an entrepreneur, was very supportive when she learned of her son's idea.

“I founded KOBEE’S to create a simpler, cleaner alternative to plastic-free products because the best products are the ones without plastic , ” Harris said via Instagram. “I hate low-quality ingredients and companies telling consumers their products are additive-free but selling us products that are not additive-free. I want to remove the guesswork and create products that are truly good for your skin. ”

According to KOBEE'S , the company's lip balm, lip scrub and cuticle butter can not only save dry, cracked skin, but also save the earth. The products are all natural ingredients , handmade and sustainable .

" One small change is enough , make the difference," Harris wrote on the company's website profile. " We want everyone who supports KOBEE'S to know that they are making a difference for the environment. No matter how small, whether it's carrying a water bottle, buying a paper straw, or purchasing a tube of KOBEE'S, it all makes a difference."

In fact, Harris's concept is precisely the weapon that drives the sales of its products. At a time when everyone pays attention to environmental protection and sustainable development, such a marketing concept is deeply rooted in the hearts of the people, which has greatly driven the hot sales of products, won praise, and promoted the company's performance to soar.

Harris recently appeared on the famous American small business show "Shark Tank". He offered a 6% stake in the company in exchange for a $300,000 investment and hoped to receive guidance and help in product distribution. This would bring the company's valuation to $5 million.

Kevin O'Leary offered $300,000 and his numerous retailer relationships in exchange for a 20% stake in KOBEE'S. Harris' negotiations with Kevin O'Leary ultimately failed .

He believes that he should stick to his position. His business is currently very profitable. Small businesses are usually valued based on the growth multiple of the seller's discretionary income (SDE) . The current valuation does not meet his expectations. His business is growing in profits.

However , equity transfer can make people rich and realize the dream of early retirement , and Harris's refusal also shows his courage.

Harris is now a very business-minded business owner. He has made daily necessities that cater to the public based on his own ideas and market demand, and his sales on Amazon's self-built website have grown rapidly. In the process of his entrepreneurship, all-natural products and the concept of sustainable development have added a lot of points to the company.

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