WebsiteClosers® presents an eCommerce Brand in the Yoga Vertical. The brand has been established for 17 years and continues to thrive with both DTC and B2B clients. Over the years, the company has grown and now offers a catalog of over 400 yoga accessories that are enjoying not just thriving DTC sales, but also a fast-growing number of wholesale accounts as well.
The company is being sold with $235,000 of inventory included.
The company has prospered by continuously releasing new SKUs on a weekly basis, and their research has given them a sharp understanding of what their customers are looking for. Their accessories are used in 99% of all yoga practices. In an industry that had been adept at altering products to suit the changing needs of yoga practitioners, this company has the pulse of its audience.
At a $146 Average Order Value, the company is enjoying brisk DTC sales to their main customer demographics of women between the ages of 35-55 who are looking for quality products at affordable pricing. To further entice these customers, the company expanded its sales channel to include an Amazon shop, which is growing but still only accounts for 5% of sales. Although Shopify remains the company’s main platform for sales, they are enjoying rising sales on Amazon.
The company is now shipping 30+ orders per day, and that includes a growing number of upsells, since the brand’s Repeat Customer Rate continues to rise. The company’s rising profits include big spikes in sales during the start of the year when customers make a New Year’s resolution to get into a fitness routine, with yoga being an exceptionally popular choice. Studies indicate that 300 million people worldwide are yoga practitioners, and while 80% are women, the number of men practicing yoga is on the rise. In addition, more than 14 million practitioners are 50 or older, and yoga remains one of the top 10 exercise regimens worldwide.
Business Broker Takeaway
Our analysis of this business shows that the value propositions present are strong for a first-time buyer looking to get into the online space. We are excited about this business for 3 important reasons:
1. Solid Wholesale Accounts. With their DTC sales thriving, the company has spent the past several years enjoying a successful expansion into B2B sales focusing on multiple niche verticals related to the Health & Fitness industry. The company skillfully accommodated this growth by introducing new lines of products designed to appeal to wholesalers and retailers marketing items designed for verticals such as massage therapy, fitness and home exercise. The company is now focused on expanding its products to include the booming home massage therapy vertical as well. The company has been successful enough that it has expanded to include two brand websites marketing related products.
2. Effective Marketing. SEO has been a cornerstone of the company’s digital market efforts, with keywords popular in their vertical effectively used to put their online shops in front of customers, and it’s worked as intended. The company also benefits from having an email database of 20,000+ subscribers to tap into for future newsletters that promote new products, boost upsells and cross sells and offer special deals. More recently, the company hit a new milestone as their SEO efforts began to attract a fast-growing number of sales on mobile devices. Traditionally, up to 70% of the company’s sales have come from computers and laptops, but more recently the numbers are now split 50/50 between computers and mobile devices.
3. Efficient Operations. To maintain their large catalog, the company sources products from six reliable suppliers in the U.S., India and China. The company stocks its products and this sale includes $235,000+ in inventory. All products are labeled with the company’s logo and brand name, and the company maintains full inventory at all times in their 10,000 square foot warehouse. The business is so efficiently managed that the current owner works as little as 2 hours per week, focusing mostly on strategies to attract new buyers and on website development. A full time worker manages daily tasks while temporary help is often used for order fulfillment. The company now has the added advantage of also having Fulfillment By Amazon at its disposal for future shipping and customer service needs.
The Company
First launched in 2007, the company has developed an efficient operation that does not require any special skills on the part of a buyer. In addition to the $235,000 in inventory included in this transaction, the new owner also gets the company’s solid DTC and B2B customer base, brand recognition, and a huge catalog ideally suited to the expanding needs of people pursuing yoga and other forms of physical fitness and fitness therapy.
This business represents a clear opportunity for a U.S. Buyer to acquire this company and scale it quickly by adding a clothing line to its catalog, introducing other new lines of products related to massage therapy and home exercise equipment, and focusing more on social media marketing, including the use of video marketing and partnerships with social influencers.
