Rapidly Growing Amazon Ecommerce Medical Supplies Retailer
This is a company that sells medical supplies, with a focus on diabetes products. They have a wide range of offerings which include over 120 SKUs for life-saving medical products that cater to various demographics. The company operates primarily on Amazon and eBay, with 94% and 98% lifetime seller reviews, respectively. The business has perfect impulse-buy average ticket of $37.49, no seasonality, and a 23% repeat customer rate. They have established great relationships with suppliers and manage their inventory through a hybrid fashion, utilizing Amazon FBA for 10-15% of Amazon traffic, while shipping the rest through a small owner-warehouse managed by two employees. Currently, the company is experiencing 85% YoY growth with a projected 20% increase YoY for the next three years.
OPERATIONS
This business has a highly polished eCommerce storefront and Amazon storefront, which drive most of their sales. They are primarily USA-based, and they source all their products in-house. They maintain their inventory and shipping logistics in-house but are transitioning to an FBA platform to increase profits. The owners work part-time hours mainly overseeing customer service issues and maintaining the business.
The company has a hybrid system for fulfilling orders, where they stock and ship all their products in-house, but they also utilize Amazon FBA for 10-15% of their traffic. The business has established solid relationships with their distributors, which offer volume pricing, allowing them to maintain an average shipping time of one week. They are transitioning to an FBA platform to increase profits.
MARKETING AND KEY METRICS
The business operates primarily on Amazon and eBay, and they have a great reputation on both platforms. They have a perfect impulse-buy average ticket and a 23% repeat customer rate, both of which highlight the ease of ordering through the platform and the quality of their products. They do not utilize any other marketing channels.
The business primarily operates on Amazon and eBay, but they do not utilize any other marketing channels. They have a perfect impulse-buy average ticket and a 23% repeat customer rate, both of which are highly enticing to customers.
The business has a perfect impulse-buy average ticket of $37.49, no seasonality, and a 23% repeat customer rate. Their lifetime seller reviews are also well recognized with a 94% lifetime seller review on Amazon and 98% on eBay.
The customer base for this business is broad, with a focus on diabetes patients and healthcare practitioners. They have over 120 SKUs catering to different demographics, which allows them to have an extensive customer base across various verticals.
BUSINESS MODEL & RESOURCES NEEDED
The company currently has two full-time employees who manage all inventory and processing needs. The owners work less than part-time hours along with overseeing customer service issues and maintaining the business. They have no plans to hire additional staff in the immediate future.
THE INDUSTRY
The medical supplies industry has been growing exponentially, primarily due to the rapidly ageing population in the United States. With the passage of the Affordable Care Act, the medical supplies industry witnessed a massive surge in demand. The industry is highly regulated, and there are a limited number of companies that have expertise in this area. Key players include McKesson, AmerisourceBergen, and Cardinal Health. The demand is expected to continue rising as the US population ages.
OPPORTUNITIES TO SCALE
The business is experiencing rapid growth, with a YoY growth rate of 85%, and a projected 20% increase YoY for the next three years. They can expand their business within the US and globally, utilizing the power of Amazon. The owners are in the process of transitioning to an FBA platform to improve their efficiency and broaden their reach. New products and an expanded product line also represent growth opportunities for the business.
Asking Price: $1,770,000
Gross Income: $3,864,614
Cash Flow: $467,126
Year Established: 2016
Employees: 3
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