Highly Profitable CBD-Derived Product Brand with 41% Repeat Order Rate
This eCommerce brand specializes in offering high-quality CBD derived products for topicals, skincare, and pet products. With a strong focus on customer satisfaction, the company has achieved a 41% repeat order rate and offers a wide range of CBD goods, including edibles, topicals, smokeable products, and more. The brand has experienced success in both direct-to-consumer sales on their Shopify website and on Amazon.com. The company has a diverse customer base and sees strong sales across all seasons. With a growing global market for CBD products, there are significant opportunities for scaling and expanding the business.
OPERATIONS
The company operates a manufacturing facility to create their proprietary formulations for all products. With 40 parent SKUs and ongoing product testing, they continually expand their product offerings. The company utilizes SEO, content marketing, social media marketing, and influencer campaigns to drive sales. They have a team of experienced professionals in production, sales, marketing, operations, quality assurance, logistics, content strategy, and finances. All orders are shipped from their 5,000 square foot warehouse.
The company operates a 5,000 square foot warehouse from which they ship all orders. They have a team dedicated to logistics and shipping, ensuring timely and efficient delivery of their products. The company maintains relationships with reliable suppliers to source high-quality CBD derived products. They have also implemented inventory management systems to optimize their supply chain.
MARKETING AND KEY METRICS
The company utilizes a multifaceted approach to marketing, including SEO, content marketing, social media marketing, and influencer campaigns. They focus on providing high-quality content through their blog, social media channels, and email marketing. With a strong email database and growing social media following, they engage with committed CBD consumers and build brand trust. The company also invests in PPC marketing and attends trade shows to find new B2B leads and contracts.
The company’s sales are divided between their Shopify website (90% of revenue) and Amazon (10% of sales, with numbers on the rise). They have a wholesale division and are actively exploring new leads. To further grow their B2B channel, the company is optimizing their wholesale landing page and catalog landing page, enhancing email marketing campaigns, and reaching out to local prospects. They plan to increase their PPC marketing campaign and attend trade shows to attract more B2B leads and contracts.
The company enjoys a 41% repeat customer rate for their 300+ SKUs, with a high average order value of $85 for DTC sales and $5,000 AOV for B2B orders. They have a strong presence on social media, with over 5,000 Instagram followers and growing email subscriptions. The company receives an average of 70 shipments per day, including 60 DTC shipments and 10 B2B shipments. Their SEO efforts have resulted in top keyword rankings and high web traffic, with 30,000 monthly visitors.
The company has a diverse customer base, with approximately 30% of customers between the ages of 24 and 34, evenly divided between men and women. Around 15% of customers fall into the age ranges of 18-24 or 45-54, demonstrating the broad appeal of their products. Sales are generated through their Shopify website (90% of revenue) and Amazon (10% of sales), with a growing number of repeat customers. The company has 30 wholesale customers and is actively expanding their B2B channel.
BUSINESS MODEL & RESOURCES NEEDED
The company has a large and experienced team in place, including professionals in production, sales, marketing, operations, quality assurance, logistics, content strategy, and finances. They also employ freelancers for web development, eCommerce coordination, and shipping and receiving. The team ensures seamless daily operations and supports the company’s growth and expansion.
THE INDUSTRY
The CBD industry is experiencing rapid growth globally, with the global cannabidiol market valued at $2.8 billion in 2020 and projected to grow by 21% through 2028. This company operates in the niche field of hemp-derived products, offering CBD goods with therapeutic benefits. The global organic skincare products market is projected to reach $17.40 billion by 2028. The industry is still in its infancy, and with the increasing recognition of the healing qualities of CBD products, there is significant potential for growth and expansion.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this eCommerce brand. They can continue to research and develop unique formulations for new topicals and food products, effectively upselling to their existing customer base. Increasing their PPC marketing campaign can drive more traffic and sales. Attending trade shows and pursuing new B2B leads and contracts will further expand their wholesale channel. With the growing global market for CBD products, there are ample opportunities to scale and increase market share.
Asking Price: $2,650,000
Gross Income: $4,314,805
Cash Flow: $576,266
Year Established: 2016
Employees: 23
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