CBD Ecommerce Retailer: Supplements, Tinctures, Oils, Edibles, Gummies, and Pet Treats

This is an online retailer that specializes in selling CBD-based supplements, tinctures, oils, edibles, gummies, and calming pet treats. They offer THC-FREE, USA Grown, CO2 Extracted, Pure CBD (Hemp Oil) Products. They have an established 15,000+ mailing list, and an average of over 550 customer visits per day.

OPERATIONS

This is a fully branded ecommerce retailer in the CBD vertical segment. Currently, online sales account for 98% of the business, but the owners have recently begun a campaign targeting brick-and-mortar retailers. A small warehouse of under 1000 square feet is used to house the inventory, which is 2-4 weeks’ worth of stock.

A strong inventory control process is in place, and the business maintains 2-4 weeks’ worth of stock at all times. The warehouse is small and managed by 6 full-time employees.

MARKETING AND KEY METRICS

The business has utilized a variety of marketing avenues including SEO, affiliates, social media, influencers, and marketplace advertisements. Much more can be done on this front. Additionally, they plan on targeting specific keywords on all site pages and future articles, with a big push towards backlinks to increase revenue.

Currently, online sales account for 98% of the business. However, targeting brick-and-mortar retailers is expected to lead to an immediate uptick in profits. New owners can leverage the established 15,000+ customer database to focus on brand ambassadors, social media influencers, affiliates, and paid referrals. Additionally, there are opportunities for content marketing including BLOG & Article creation and video content for the website.

This business averaged 570 customers daily over the 2019 year, processing over 100 orders a day with an average order size of $64.00. The business has a 73% gross margin.

The business boasts a customer base of over 15,000 highly targetable subscribers on their email database who can be retargeted for subsequent sales, promotions, and referral generation.

BUSINESS MODEL & RESOURCES NEEDED

The business relies on 6 full-time warehouse employees, all working 40-hour weeks to carry out daily operations.

THE INDUSTRY

CBD products have become an increasingly popular and fast-growing industry in the health and wellness space. The industry is predicted to grow at a CAGR of 21.2% from 2019-2025. This business offers an opportunity to jump into one of the hottest, fastest-growing segments and has already built up a strong reputation in the market.

OPPORTUNITIES TO SCALE

New owners have immediate scale opportunities to leverage this well-reputed brand name to focus on brand ambassadors, social media influencers, affiliates, and paid referrals. They can also push for targeted keyword and backlink marketing. Further, branching out to brick-and-mortar retail space will provide diversification from online-only sales.

Asking Price: $5,500,000
Gross Income: $1,702,916
Cash Flow: $1,070,021
Year Established: 2018
Employees: 6

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Amanda Stanley

Amanda has been a professional writer since 2010. She writes during the day and reads by night. She has accumulated knowledge by scouring the internet and reading informative books. Concurrently, she developed a passion for educating people through her blogs and web tutorials. She is an earnest believer that knowledge is power.

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