Pre-Qualified Probiotic Supplements Ecommerce Brand – 45% Repeat Order Rate, 80% DTC, 20% B2B, 30 Year Brand – 24% Net Margins
This successful eCommerce company specializes in the niche field of Probiotics and has created a profitable position within the global nutritional supplements industry. With a focus on customer satisfaction, they have achieved a high repeat order rate of 45%. With a strong presence both direct-to-consumer (DTC) and in the business-to-business (B2B) market, they have expanded their product line to include 75 active SKUs. The company is globally recognized and enjoys a reputation for quality products, resulting in a 30+ year brand history.
OPERATIONS
The company operates efficiently, with an owner spending approximately 25 hours per week overseeing orders, inventory management, marketing, payroll, and newsletter content. An operations manager handles day-to-day tasks, and a part-time nutritionist assists with customer queries. The business utilizes a 100% stock inventory model, and order fulfillment is processed by a centrally located U.S. 3PL, ensuring fast inventory replacement and quick shipping throughout the country.
The business operates on a 100% stock inventory model and utilizes a centrally located U.S. 3PL for order fulfillment. The 3PL is in close proximity to the supplier, enabling fast inventory replacement and quick shipping throughout the country. The logistics company offers competitive pricing and fulfillment services, ensuring efficient supply and logistics operations.
MARKETING AND KEY METRICS
The company has built a strong customer base through its marketing efforts, including print and television appearances. They also have a substantial email subscriber list, which provides opportunities for introducing new products and generating upsells. The website receives over 10,000 unique average monthly visitors, with most traffic coming from existing customers, online searches for the brand, and residual supplier marketing. Additionally, the company benefits from an exclusive licensing agreement with their supplier, which provides access to corporate product marketing initiatives and $2 million in annual advertising.
The company has strong sales channels, with 80% of sales coming from DTC channels and 20% from B2B channels. The business has consistently achieved year-over-year growth with minimal investment in paid marketing. The potential for growth in this online business lies in mass retail expansion, enhanced email marketing, international expansion, affiliate and performance-based marketing, and subscription models. Capitalizing on the growing probiotics market and the increasing health consciousness of consumers, there are ample opportunities for sales channel growth.
Key metrics for this business include a repeat order rate of 45%, 80% of sales coming from DTC channels, and 20% from B2B channels. The company also enjoys a net margin of 24%, indicating strong profitability.
The company’s customer base consists of health-conscious individuals between the ages of 18 and 54. The customer base is split evenly between genders, with 54% of sales to men and 46% to women. These customers care about their health and are willing to invest in high-quality probiotic supplements. The company’s strong repeat customer rate of 45% indicates a loyal and satisfied customer base.
BUSINESS MODEL & RESOURCES NEEDED
The company has a lean team with an owner spending approximately 25 hours per week on the business. An operations manager handles day-to-day tasks, and a part-time nutritionist assists with customer queries. Both are willing to stay with the new owner. The business does not require an extensive workload and is well-run operationally.
THE INDUSTRY
The global probiotics market, valued at $58 billion in 2021, is projected to grow by 7.5% through 2030. The market is driven by consumer demand for supplements that promote preventative care and boost the immune system. This eCommerce brand has established a strong reputation in the probiotics industry and is attracting thousands of unique visitors each month. With its reputable brand, licensing agreements, and loyal customer base, the company is well-positioned to capitalize on the growing trend of health-conscious consumers.
OPPORTUNITIES TO SCALE
With a globally recognized brand and a reputation for quality products, this eCommerce brand has significant scale opportunities. These opportunities include mass retail expansion, enhanced email marketing, international expansion, affiliate and performance-based marketing, and subscription models. The company’s licensing agreements, strong customer base, and established sales channels provide a solid foundation for scaling the business. Examples of scale opportunities include partnering with retail chains, expanding into new markets, and leveraging influencer marketing to reach a wider audience.
Asking Price: $1,300,000
Gross Income: $1,296,455
Cash Flow: $317,862
Year Established: 2008
Employees: 2
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