Rapidly Growing Amazon Medical Supply Business with 85% Year-over-Year Growth and 23% Repeat Customer Rate
The Medical Supply Company specializes in providing high demand consumables for diabetes patients. The company has a large product line and offers bulk pricing, attracting a high percentage of repeat buyers. The business has seen tremendous growth on Amazon and eBay storefronts, boasting lifetime reviews of 94% and 98%, respectively. They fulfill and package all products in the USA and have two employees managing all shipping and inventory, with an opportunity to decrease OPEX by switching to FBA (Fulfillment by Amazon).
OPERATIONS
The company uses a hybrid model, shipping from their warehouse and utilizing Amazon FBA for a portion of their Amazon traffic. The fulfillment and packaging of all products are done in-house. The company has a strong relationship with suppliers allowing flexible volume pricing and a low inventory risk model. New ownership can operate and maintain the business easily without any special skills or background.
The company sources, fulfills, and packages all products in the USA and uses Amazon FBA for 10-15% of their Amazon traffic. They currently have two employees managing all shipping and inventory.
MARKETING AND KEY METRICS
The business has experienced 85% YOY growth and has a peak average ticket of $37.49 with no seasonality. Their 23% repeat customer rate is impressive, and the company can easily scale domestically and abroad.
The company has seen tremendous growth on Amazon, eBay storefronts, and a highly polished eCommerce storefront.
The company has a 23% repeat customer rate, 85% YOY growth, an average ticket size of $37.49, and boasts lifetime reviews of 94% and 98% on Amazon and eBay respectively.
The company has a 23% repeat customer rate, which is an evolving group of consumers with a regular demand for the products.
BUSINESS MODEL & RESOURCES NEEDED
The current owner works less than part-time hours to oversee customer service issues and maintain the business, A quick opportunity to decrease OPEX and rid the company of storage and shipping overhead would be to switch all shipping and inventory to an FBA platform.
THE INDUSTRY
The Medical Supply Industry is a significant sector because of the growing demand for health care products and services worldwide. The industry has remained resilient during the pandemic, experiencing growth with an estimated global market size of $106.2 billion by 2026. This business, in particular, is in a necessary yet profitable niche for diabetic patients.
OPPORTUNITIES TO SCALE
This business can scale domestically as well as abroad, and new markets are only a step away with the power of Amazon. New ownership has the opportunity to decrease OPEX and rid the company of storage and shipping overhead by switching to an FBA platform.
Asking Price: $2,549,000
Gross Income: $5,173,940
Cash Flow: $749,414
Year Established: 2016
Employees: 3
- Two Highly Profitable Sports & Fitness Ecommerce Brands For Sale - July 8, 2023
- Branded Ecommerce Company for Baking Goods - July 8, 2023
- Trendy Baby Fashion Retailer Ready to Launch - July 8, 2023
