Essential Oils & Food Flavoring Brand with 25% Repeat Customer Rate
This is an eCommerce retailer offering a wide range of essential fragrance oils and food flavoring essences. The brand has over 500 SKUs of branded oils with an emphasis on novelty flavors like cotton candy or bubblegum. The company has a 25% repeat customer rate and an average order value of $12. It’s a profitable, low-overhead business with a minimal physical footprint, making it highly portable and efficient. The business uses US manufacturing for its products resulting in faster inventory turns and less working capital. The company uses Amazon FBA fulfillment, making expansion into international markets simple. The company also has a well-established eBay Power Seller account with customer feedback of over 5,000 positive reviews.
OPERATIONS
The company has a robust core revenue stream due to low seasonality in terms of demand shift and the consumable nature of their products. The company has very little social media and paid advertising/SEO, relying on organic growth. The company has recently taken advantage of Amazon FBA fulfillment, streamlining their stock and ship model with a near-zero overhead model. This has opened up opportunities for international market expansion. The company has B2B and wholesale opportunities waiting to be pursued with this reputable brand.
The company’s US manufacturing setup allows for faster inventory turns and less working capital to stay liquid on product quantity year-round. Recently, they have taken advantage of Amazon FBA fulfillment, resulting in the streamlining of their already minimal-impact stock and ship model, making it a near-zero overhead model. The company has very few supply chain issues due to no reliance on overseas suppliers.
MARKETING AND KEY METRICS
The loyal customer base for this company is evident with the 25% repeat customer rate. The company has a well-established eBay Power Seller account with customer feedback over 5,000 positive reviews. The company has only spent minimal investment on social and paid advertising campaigns.
The company relies mainly on organic growth with very little social media and paid advertising/SEO. The company has recently taken advantage of Amazon FBA fulfillment, resulting in the streamlining of their stock and ship model. With a well-established eBay Power Seller account, the company can easily scale with eBay sponsored ad spend and other nominal paid advertising and social campaigns. The company has B2B and wholesale opportunities waiting to be pursued.
The company has a 25% repeat customer rate and an average order value of $12. They have a robust core revenue stream due to irresistible novelty flavors like cotton candy or bubblegum. With Amazon FBA fulfillment, they have expanded their operation into international markets.
The company has a loyal customer base with a 25% repeat customer rate. The company’s novelty flavors like cotton candy or bubblegum, and their wider range of essential fragrance oils and food flavoring essences are a draw for customers.
BUSINESS MODEL & RESOURCES NEEDED
The company currently has three employees, making it a small business. The business is highly efficient and highly portable due to its low physical footprint.
THE INDUSTRY
The essential oils and food flavoring industry is trendy, social, and highly profitable. The global essential oil market is expected to reach $11.5 billion by 2022, with aromatherapy being the largest segment, representing 37.4% of the market. The market for food flavoring is expected to grow at a CAGR of 4.8% between 2020 and 2025 due to the increasing demand for processed food and convenience food.
OPPORTUNITIES TO SCALE
The company’s infrastructure investment has opened the door for new ownership in many ways, particularly with international market expansion with Amazon at the click of a button. With B2B and wholesale opportunities waiting in the wings for this reputable brand, it would make an excellent bolt-on to any of a very wide variety of eCom retail portfolios. As a standalone business, its continued march toward zero-overhead FBA operations means it will also stand tall as a minimum time-investment revenue stream for even the fastest moving entrepreneur.
Asking Price: $176,238
Gross Income: $93,039
Cash Flow: $47,632
Year Established: 2016
Employees: 3
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