Organic Nutritional Supplement Business with Up to 20% Repeat Order Rate
This 5-year-old eCommerce business operates under two brands and specializes in nutritional supplements. With 100% organic traffic and no paid media, the company has achieved a repeat order rate of up to 20%. The business has over 60 SKUs that are domestically sourced and enjoyed thousands of positive reviews on their Amazon storefront. Their YOY net profit growth rate is an impressive 188%, and approximately 93% of their profits come from Amazon FBA. The company’s marketing strategy focuses on organic traffic, but there are opportunities to invest in paid marketing strategies and SEO campaigns to further grow the business. The operations are currently managed by three owners and one part-time employee, but there is room to hire virtual staff members to handle various duties. With the right strategies, the business has significant growth potential, including expanding product offerings, optimizing non-Amazon storefronts, and negotiating pricing with suppliers.
OPERATIONS
The workload is currently divided among the three owners and one part-time employee. Each owner spends less than 20 hours per week operating the business, with one focused on the Amazon storefront and customer service, another on inventory management, and the third on product growth. Additional virtual staff members can be hired to cover some of these duties, allowing the buyer to focus on scaling efforts.
The company’s 60 SKUs are 100% domestically sourced within the US and made specifically for the company to sell under their brand names.
MARKETING AND KEY METRICS
The company relies on 100% organic traffic and has no paid media or PPC campaigns. Their positive reviews and ranking on Amazon act as the biggest draw to their products. There are opportunities to invest in an official paid marketing strategy, such as Amazon, Google, or other sites, to improve the number of customers. Alternatively, the buyer can focus on SEO campaigns to strengthen the company’s profits and customer base.
The bulk of the company’s sales come from Amazon FBA, generating approximately 93% of their profits. The company also sells through other sales channels, such as eBay and their own official website. There are opportunities to grow sales by investing in non-Amazon storefronts and driving traffic to these channels.
The company has a repeat customer rate of up to 20% and over 2,000 Subscribe & Save customers. Their average order value is $24, and their YOY net profit growth rate is 188%.
The customer base consists of individuals interested in nutritional supplements and maintaining a healthy lifestyle. The company has thousands of positive reviews on their Amazon storefront, indicating a loyal customer base.
BUSINESS MODEL & RESOURCES NEEDED
The workload is currently managed by three owners and one part-time employee. The buyer can hire additional virtual staff members to cover various duties.
THE INDUSTRY
The business operates in the eCommerce industry, specifically in the nutritional supplements market. The industry is experiencing significant growth due to increased consumer awareness of health and wellness. With the rise of online shopping, eCommerce businesses in the nutritional supplements industry have seen substantial success. Examples of competitors in the industry include GNC, Vitacost, and iHerb.
OPPORTUNITIES TO SCALE
The company has several scale opportunities, including improving advertising campaigns, adding new high-demand products to their roster, focusing on non-Amazon storefronts, investing in Shopify websites, and negotiating pricing with suppliers.
Asking Price: $3,150,000
Gross Income: $1,987,256
Cash Flow: $732,070
Year Established: 2017
Employees: 1
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