Profitable Ecommerce Retailer with 5 Different Brands and Growing Yearly Revenues
This Nutritional Supplements & Home Goods Company operates under 5 separate consumer brands. The eCommerce retailer has been in business for over 5 years and has already amassed a large number of in-house branded products, including Nutritional Supplements and Household Goods. All the supplements are sourced in FDA certified facilities within the United States. The Home Goods Products are sourced in Asia through a Manufacturers’ Representative. The company uses Fulfilled by Amazon (FBA) service for shipment, which has allowed the business to keep SG&A low, while maintaining a customer base that receives product in 1-2 business days.
OPERATIONS
The company has built 5 recognized consumer brands using the power of the Amazon Platform. The company has been on Amazon’s Subscribe & Save program – this builds a solid, monthly Recurring Revenue base for the company, which greatly increases the overall market value of the company as the subscription revenue mixes into sales. All sales are currently via Amazon FBA.
The company uses Fulfilled by Amazon (FBA) service for shipment. All of the products sold by this company are available via Amazon Prime, 2-day shipping.
MARKETING AND KEY METRICS
The company has really focused its efforts on marketing via the Amazon platform to date and has a highly advanced presence on the platform, including a better-than-normal brand registry page and advanced marketing via Amazon Marketing Services. There is the potential for expanding its market share via other sales channels.
The company has expanded its market share via Amazon’s Subscribe & Save Program. The other potential sales channels the company needs to explore include expanding its website storefront, expanding product lines, using the velocity of the account to acquire additional brands, selling on other marketplaces like Walmart.com and selling wholesale to Bricks and Mortar Retailers.
The repeat order rate on the Supplements brands is around 30%. All sales are currently via Amazon FBA. The value received by the company is far higher when marketing its own product lines than marketing the product line of others.
The company’s customers are primarily health enthusiasts and entrepreneurs, health-conscious people, and anyone who is looking for high-quality, FDA approved Nutritional Supplements and Home Goods with a fast delivery time.
BUSINESS MODEL & RESOURCES NEEDED
The company has 15 employees.
THE INDUSTRY
This company is in the eCommerce industry, specializing in Health & Fitness goods. With growing health awareness, the health & fitness industry has experienced significant growth in recent times. The revenue from fitness products worldwide is projected to reach over $13 billion in 2021. People tend to spend more online when it comes to nutritional supplements and home goods. This company has achieved tremendous growth by capitalizing on the growing health awareness trend.
OPPORTUNITIES TO SCALE
The company already has 5 branded products lines with a presence on the Amazon Brand Registry. The Subscribe & Save program has grown tremendously, including adding additional products, expanding the product lines, expanding Internationally, Brick-and-Mortar Retailers, Affiliates to sell the product via the Shopify Storefront, and selling products to distributors and other retailers at wholesale.
Asking Price: $5,200,000
Gross Income: $7,975,693
Cash Flow: $1,254,327
Year Established: 2014
Employees: 15
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