Growing Nutritional Supplement Gummy Brand with High Repeat Order Rate on Amazon FBA and Growing Subscribe & Save Program
This company specializes in-house developed Nutritional Supplement Gummies, designed to help people lead healthier lives and address various health issues. The products are designed by a medical physician and manufactured in a GMP Certified Facility in the US. Customers appreciate the taste and effectiveness of the gummies, leading to a high seller rating on Amazon and a 31% repeat order rate in the last quarter.
OPERATIONS
The company carries 9 SKUs sourced from 3 US-based suppliers. With an average order value of $19.82, sales have grown steadily. They have utilized the Amazon platform, particularly the Subscribe & Save program, which represents 14%+ of their total revenue. The company operates with low workload, estimated at 6 hours per week, with the owners handling all business operations.
The company’s gummies are pectin-based, ensuring they remain stable in temperatures up to 200 degrees. This prevents product damage during hot weather storage. The products are stocked in Amazon FBA with 3PL warehouse management used for overstocks.
MARKETING AND KEY METRICS
The company markets its products primarily on Amazon, utilizing Amazon PPC and sponsored product ads. There is an opportunity to expand marketing efforts on Amazon and other channels with an increased budget. The company has also developed its own website on Shopify, providing an opportunity to drive traffic and convert sales outside of Amazon.
The company’s primary sales channel is Amazon, and they have seen success with the Subscribe & Save program. There is an opportunity to expand sales internationally on Amazon platforms in Canada, the UK, the European Union, Mexico, and Australia. Additionally, the company could diversify its sales channels through target+, Walmart, and other platforms.
The key metrics for this business include a 4.9 seller rating on Amazon, a 31% repeat order rate, and a 14%+ revenue contribution from the Subscribe & Save program. The average order value is $19.82
The brand’s customer base consists primarily of women between the ages of 45-54 with some college education. Their gummies are popular among a wide demographic range due to their taste and effectiveness.
BUSINESS MODEL & RESOURCES NEEDED
The company is operated solely by the owners, without any employees or contractors. The workload is estimated at 6 hours per week.
THE INDUSTRY
The company operates in the nutritional supplement industry, specifically targeting the market for gummy supplements. The global market for gummy supplements was $5 billion in 2020 and is projected to grow by 12% by 2027. The gummy supplement vertical has become popular among children and adults due to their taste and nutritional benefits.
OPPORTUNITIES TO SCALE
The company has scale opportunities by expanding international sales on Amazon platforms and diversifying sales channels. They can also leverage digital marketing to boost traffic to their Shopify website and increase organic sales. The company has a strong email marketing campaign with 21,000 subscribers. Increasing advertising budget and utilizing more Amazon advertising features would drive growth.
Asking Price: $4,250,000
Gross Income: $2,599,120
Cash Flow: $852,048
Year Established: 2018
Employees: 2
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