This business is in a sweet spot! In 2013 Forbes identified the Supplements Industry as one of the fastest growing sectors in America, producing about $60 Billion in just nutritional supplements alone. This business is doing quite well in this sector with solid year over year performance and a very large customer base. It is this customer base that is invaluable to a future owner because Supplement customers tend to be consistent, repeat buyers. Reoccurring revenue is not an attribute we see often in eCommerce companies, so this factor alone makes this opportunity stand out from the crowd.
This business has both a website front end as well as an Amazon storefront, giving it multiple sales channels to reduce risk and increase the possibility of scale. However, the owner is currently focusing solely on the Amazon channel at this time. There is room for growth on both Amazon as well as the company’s own domains.
Because the footprint of this business is so small, with low space requirements (and thus low overhead), it can continue to be operated from a home environment or be switched to a small office space.
What separates this business from its competitors is its unique supply chain network. Supply relationships allow the business to operate with solid gross margins, providing great opportunities to expand marketing efforts and continue to build the customer database.