Explosive Growth and High Margins: Amazon FBA Nutritional Supplements Ecommerce Brand
This eCommerce brand offers a variety of nutritional supplements to support various aspects of daily life, such as stress, weight loss, energy, memory, mood, focus, and performance. The company primarily operates on Amazon using the Fulfilled by Amazon (FBA) approach for quick and efficient shipping. They pride themselves in providing high-quality, non-GMO, and gluten-free supplements made in a GMP-certified facility in the USA. With a strong presence on Amazon and a nearly perfect lifetime seller rating, the company has achieved a 30% year-over-year growth with an average order value of $25 and a 26% net profit margin.
OPERATIONS
The company’s operations primarily revolve around managing inventory on Amazon and ensuring a smooth shipping process through FBA. They also utilize Amazon Sponsored Ads and engage with their consumer base through email marketing and social media promotions. The current owners dedicate approximately 10 hours per week to managing operations, including email marketing, social media promotions, inventory management, and working with a PPC agency.
The company’s supply and logistics are streamlined through Amazon FBA, which handles the shipping and fulfillment process. This allows for efficient inventory management and quick delivery to customers. The products are made in a GMP-certified facility in the USA, ensuring high quality and adherence to strict purity guidelines.
MARKETING AND KEY METRICS
The company utilizes Amazon Sponsored Ads as their primary advertising strategy. They also leverage their consumer base of over 10,000 email contacts for promotions and cross-selling. While they currently have a presence on Facebook, the company could enhance their marketing efforts by creating official social media accounts on Facebook, Instagram, and TikTok to engage with their consumer base and showcase their products. Additionally, they can improve their email marketing tactics and explore other marketing channels to attract new customers.
The company primarily operates on Amazon, leveraging its vast customer base and Prime 1-2 day shipping to drive sales. To further grow their sales channels, the company can diversify and optimize their marketing efforts by expanding onto social media platforms like Facebook, Instagram, and TikTok. They can also focus on driving traffic to their own Shopify storefront to gain more control over their consumer base and promote cross-selling and upselling opportunities.
The company’s key metrics include a 30% year-over-year growth, an average order value of $25, and a 26% net profit margin. They have a nearly perfect lifetime seller rating on Amazon with tens of thousands of 4-5 star product reviews. Their marketing efforts primarily revolve around Amazon Sponsored Ads, email marketing, and social media promotions.
The company has built a strong customer base through their presence on Amazon, with a nearly perfect lifetime seller rating and tens of thousands of 4-5 star product reviews. They also leverage their consumer base of over 10,000 email contacts for promotions and cross-selling. By diversifying their sales channels and expanding their marketing efforts, the company can attract new customers and further grow their customer base.
BUSINESS MODEL & RESOURCES NEEDED
The current owners dedicate approximately 10 hours per week to managing the business operations. A potential buyer could further reduce their workload by hiring virtual assistants to handle customer service and other responsibilities. The company can be adjusted and managed according to the buyer’s preferences and available time commitment.
THE INDUSTRY
The nutritional supplements industry is a rapidly growing sector, driven by increasing health consciousness and the desire for natural solutions. With the rise of e-commerce platforms like Amazon, online businesses in this industry have gained significant traction. The industry encompasses a wide range of products, including vitamins, minerals, herbal supplements, and sports nutrition. Examples of other successful online nutritional supplements businesses include Garden of Life, Nature’s Bounty, and Optimum Nutrition.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this business. One opportunity is to expand their product offerings to include in-demand items such as sleep aids, brain booster gummies, and CBD products. Another opportunity is to enhance their marketing campaign by building official social media accounts and improving their email marketing tactics. The company can also scale by focusing on international expansion through Amazon, targeting new customers and increasing profits.
Asking Price: $2,000,000
Gross Income: $1,878,194
Cash Flow: $479,585
Year Established: 2019
Employees: 1
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