Branded Ecommerce Retailer in CBD Vertical: Supplements, Tinctures, Oils, Edibles, Gummies, and Pet Treats
This is a fully branded ecommerce retailer in the CBD vertical, offering THC-FREE, USA Grown, CO2 Extracted, PURE CBD (Hemp Oil) Products including Supplements, Tinctures Oils, Edibles, Gummies, and Calming Pet Treats. With an established 15,000+ mailing list, and an average of over 550 customer visits per day, this business is set up for success. The company presently operates from a small warehouse of under 1000 square feet, processing over 100 orders a day with an average order size of $64.00 and maintaining about 2-4 weeks’ worth of stock at all times. Online sales account for 98% of business, but the company is also targeting brick-and-mortar retailers.
OPERATIONS
Processing over 100 orders a day with an average order size of $64.00, this retailer averaged 570 customers daily over the 2019 year. This is a DIY, hands-on business with a standard 40 hour work week. Operating with 6 full time warehouse employees, most day to day efforts involve processing the previous day’s orders, packaging and shipping orders, as well as re-ordering inventory.
The business presently operates from a small warehouse of under 1000 square feet and maintains about 2-4 weeks’ worth of stock at all times. Owners have procedures for maintaining stock/inventory control which they are happy to share.
MARKETING AND KEY METRICS
The Branded Retailer has utilized a variety of marketing avenues including SEO, affiliates, social media, influencers, and marketplace advertisements, and has been pleased with their SEO efforts. Much more can be done on this front. A huge revenue generator and brand building tool exists in targeting specific keywords on all site pages and future articles with a big push towards backlinks.
Online sales account for 98% of business, but the company is also targeting brick-and-mortar retailers and recently began a campaign to that effect.
This business processed over 100 orders a day with an average order size of $64.00 and maintained about 2-4 weeks’ worth of stock at all times. Online sales account for 98% of business, but the company is also targeting brick-and-mortar retailers.
The business has an established 15,000+ mailing list, and an average of over 550 customer visits per day. The 15,000+ customers in the company’s email database are highly targetable for subsequent sales, promotions, and referral generation.
BUSINESS MODEL & RESOURCES NEEDED
This is a DIY, hands-on business with a standard 40 hour work week. Operating with 6 full time warehouse employees, most day to day efforts involve processing the previous day’s orders, packaging and shipping orders, as well as re-ordering inventory.
THE INDUSTRY
The CBD industry is one of the fastest growing industries in the market. As time has gone by, the use of CBD has only increased, and the industry has expanded to include new products such as supplements, tinctures, oils, edibles, gummies, and pet treats. There are many examples of successful businesses in the CBD industry such as Charlotte’s Web, Green Roads, and Hemp Bombs.
OPPORTUNITIES TO SCALE
Immediate scale opportunities await new ownership by leveraging this well reputed brand name to focus on brand ambassadors, social media influencers, affiliates, paid referrals, targeted keywords, and grassroots referrals for customer referrals and brand recognition. Additionally, branching out to brick-and-mortar retail space will provide diversification from online-only sales.
Asking Price: $5,500,000
Gross Income: $2,078,703
Cash Flow: $1,356,098
Year Established: 2018
Employees: 6
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