Testing for Nicotine, THC, Alcohol and More: A Proprietary Ecommerce Brand Selling DIY Home Office Tests and Accessories Across Amazon, eBay, and Walmart
This eCommerce brand offers proprietary home and office DIY tests for nicotine, THC and alcohol. The company focuses on nicotine, alcohol, and marijuana-related tests and accessories for parents of teenagers, employers, schools, and governments, and other test kits can be added over time. The average order value on Amazon is $26 across 138 ASINs. Sales are relatively consistent throughout the year, with peaks seen during school programs. The typical customer is a 40-year-old mother of a teen worried about substance abuse. The business predominantly operates through Amazon, generating 75% of all revenue.
OPERATIONS
Sales occur through Amazon, the website, eBay, and Walmart. Products are manufactured exclusively for the company by an Asian supplier and stocking is handled by a California-based 3PL. Digital marketing efforts are minor and offer ample opportunity to increase sales through various endeavors. The owner works just ten hours weekly and with more time, a new owner can look to vastly expand the business.
All primary products for this Brand are manufactured exclusively for the Company by an Asian supplier with whom the owners have worked for 10+ years. Orders are delivered from the company office and its 3PL. Generally, between three and four shipments per week are made from the 3PL. The small local warehouse fulfills Shopify orders but the owner is arranging for most website orders to be fulfilled by Amazon.
MARKETING AND KEY METRICS
Digital marketing efforts are minor, with a small budget on Google. There is ample opportunity to boost sales through various endeavors.
The business predominantly operates through Amazon, generating 75% of all revenue. There is ample opportunity to increase sales through various digital marketing endeavours.
The average order value on Amazon is $26 across 138 ASINs. The top-selling products are combination urine tests for nicotine, THC, and alcohol, saliva nicotine-only tests and urine nicotine-only tests. Amazon accounts for 75% of all revenue. Sales are relatively consistent throughout the year, with peaks aligning with school programs.
The typical customer is a 40-year-old mother of a teen worried about substance abuse. They are willing to pay a slight premium for a more accurate test kit.
BUSINESS MODEL & RESOURCES NEEDED
The owner works only ten hours weekly on the business, focusing primarily on inventory management, the guidance of large orders, and supervision of packing and shipping staff. Part-time staff, working ten hours or fewer weekly, include a shipping clerk, packing clerk, and a piece- work packing clerk.
THE INDUSTRY
The brand specializes in home and office tests for nicotine, THC, and alcohol – a growing concern among employers, parents, governments, and schools given the rising substance abuse among teens and workers. With smoking and vaping among adolescents as the most crucial issue affecting families nationwide, these test kits are necessary and have a bright future as that access broadens.
OPPORTUNITIES TO SCALE
The owner works just ten hours weekly, so with more time, a new owner can look to vastly expand the business. The lending partners have also pre-approved this business for an SBA 7(a) loan, allowing a qualified buyer to acquire the business for as little as 10% down, with the SBA loan amortized over ten years.
Asking Price: $1,100,000
Gross Income: $604,129
Cash Flow: $247,000
Year Established: 1999
Employees: 1
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