FDA-Registered Hearing Aids Consumer Products Brand: 33% Repeat Order Rate and 34% YOY Profit Growth
This FDA-registered Hearing Aids Consumer Products Brand is a highly profitable eCommerce business in the affordable hearing solutions industry. They offer a range of in-house brand FDA-registered hearing aids designed by a Board-Certified Otolaryngologist. With a 33% repeat order rate and all eCommerce sales, the company has experienced a 34% year-over-year profit growth. They have a strong customer base and 6 exclusive SKU models available on their website, Amazon, and Walmart.
OPERATIONS
The company operates primarily through its branded website, leveraging extensive website upgrades and SEO strategies to drive sales. They have also established distribution channels on Amazon.com and Walmart.com. By focusing on direct-to-consumer (D2C) sales through their website, the business has improved margins and profitability. They also use PPC ads and SEO to boost organic traffic and have a robust email marketing campaign that generates significant revenue.
The company ships an average of 20 packages per day using Fulfillment by Amazon (FBA), Walmart Fulfillment Services, and their own fulfillment. They maintain inventory at Amazon, Walmart, and their own warehouse, with new inventory orders placed every one to three months. Thanks to the small nature of the product, minimal storage space is required.
MARKETING AND KEY METRICS
The company combines paid and organic strategies in their marketing efforts. They use PPC ads on Google and Facebook to drive traffic to their website and boost sales. They also utilize SEO tactics to increase organic traffic, with their blog alone generating 500 new visitors per month. The company has a substantial social media presence, with over 11,300 monthly views on platforms like Facebook, Twitter, Instagram, and Pinterest.
The company has seen steady sales growth through their own website, Amazon, and Walmart. They have achieved high-profit margins by focusing on sales from their website. To drive further growth, there is an opportunity to expand internationally through Amazon’s platform and increase spending on PPC ads. They can also leverage their strong customer base and positive reviews to upsell and cross-sell products, as well as expand their product offerings.
Key metrics for this business include a 33% repeat customer base, average order values ranging from $128 to $300 on different platforms, and a 34% year-over-year profit growth. The company also has a significant email database with over 31,880 active addresses, and they estimate that their email campaigns have generated over $80,000 in revenue.
The company’s customer base consists mainly of individuals aged 55-60, predominantly men, with a household income of $55,000+. These customers are seeking affordable hearing solutions and have shown loyalty to the company, resulting in a 33% repeat customer rate. The company has also received highly enthusiastic reviews from its customer base.
BUSINESS MODEL & RESOURCES NEEDED
The current ownership of the business works an average of 20 hours per week and has two full-time employees, a customer service manager, and an inventory processing and shipping representative. They also employ contractors for website management, email marketing, affiliate marketing, and PPC ad management.
THE INDUSTRY
The hearing aid industry is booming, with an estimated 466 million people worldwide living with some form of hearing loss that requires a hearing aid device. This company aims to provide affordable hearing solutions to a wide range of customers, including the younger generation. The market for effective hearing aid products is projected to reach $11 billion by 2028. Examples of other companies in the industry include major brands like Phonak, ReSound, and Oticon.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this business. Firstly, they can upsell and cross-sell their existing customer base by offering upgrades to hearing aids and marketing new ancillary products. They can also expand their product line into new hearing aid technology and accessories. Additionally, the company can increase website conversions through affiliate marketing and expand their presence in international markets.
Asking Price: $1,750,000
Gross Income: $1,735,232
Cash Flow: $366,427
Year Established: 2016
Employees: 3
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