Growth Compression Socks Ecommerce Brand for Nurses and Healthcare Workers – 140% YOY Increase with All In-House Designs
This eCommerce brand focuses on compression socks for the healthcare industry, particularly popular among nurses and workers whose jobs require them to be on their feet for long periods of time. The company has its own line of specialized compression socks, manufactured for them, all sold under their brand name.
OPERATIONS
Sales have been strong in the healthcare vertical, and now the company has recently begun the process of diversifying their product listings and introducing additional quality products within their niche space. The brand has been focusing on digital marketing to expand its organic reach to customers, using video marketing on sites such as TikTok and YouTube.
100% of the company’s sales come from products they stock in their 3PL warehouse. They stock $150,000+ worth of inventory and place new orders bi-weekly.
MARKETING AND KEY METRICS
The brand’s digital marketing program has been a successful mix of paid and organic traffic. They run PPC ads on Facebook and Google while using video marketing on sites such as TikTok and YouTube to expand their organic reach to customers.
The company has a major scale opportunity by expanding their sales channels and listing their SKUs on sites such as Amazon, eBay, and Walmart, introducing their products to the millions of customers using those platforms daily.
With an Average Order Value of $43, sales have been brisk throughout the year with minimal seasonality to sales. Their customer demographics are strong, with their products appealing mainly to women who work as nurses or in the field of healthcare, aged 21 to older, with the most concentrated range from ages 30-40.
Their customer demographics are strong, with their products appealing mainly to women who work as nurses or in the field of healthcare, aged 21 to older, with the most concentrated range from ages 30-40. Since customers tend to wear out socks over time and reorder new ones, the company’s Repeat Customer Rate has shot up to 13% and rising.
BUSINESS MODEL & RESOURCES NEEDED
This company is well-automated and requires as little as 15 hours of the owner’s time per week to operate. The current owner focuses on tasks that include admin work, launching new PPC ads, negotiating with suppliers, managing inventory, and generating ideas for scaling.
THE INDUSTRY
The healthcare industry represents a market that is continuing to grow as the population increases. The U.S. national healthcare expenditure was $4.1 trillion in 2020, or $12,530 per person, and is projected to reach $6.2 trillion by 2028. The market for compression socks is increasingly large, encompassing DTC sales to nurses, doctors, athletes, and literally anyone whose job requires them to stand for a long time, and B2B sales to pharmacies, healthcare companies, uniform shops, and medical supply distributors.
OPPORTUNITIES TO SCALE
The company is strongly considering a monthly subscription model, since most people own multiple pairs of these socks. There is a major growth opportunity open to this company, and they are facilitating that growth by continuing to expand their product line.
Asking Price: $4,000,000
Gross Income: $3,832,451
Cash Flow: $976,270
Year Established: 2020
Employees: 5
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