Website Closers® presents an Amazon FBA eCommerce Company that operates within the Nutritional Supplements Vertical, providing Dietary Supplements Gummy Bear Form. This SBA-approved eCommerce brand provides customers with a fun, flavorful alternative to tablets and powders in the form of gummies, not only for a more flavor-rich approach to taking vitamins and supplements, but also to help those customers that have a difficult time swallowing pills and capsules.
The Brand only sells on Amazon and has become incredibly popular among customers within a remarkably short period of time, achieving a YOY Growth Rate of 49%, a Net Income Margin of 22%, and a 4.5-star Customer Rating based off over 4,000 reviews. One of the largest appeals of the company’s 6 current products is their shape. Rather than settling for a generic look, their products are modeled after gummy bears. This, coupled with the variety of flavors that the supplements that their products come in, let customers enjoy a treat that’s both nutritious and delicious. For kids and Adults!
The company came up with the formulas for 2 of their products, giving them private manufacturing rights for these offers, as well as a variety of supplements that can’t be found from any competitors. Their gummies have been very well-received among customers, as evidenced by their high products reviews and ratings. They have an Average Order Value of $22, and given the consumable nature of their products, the brand lends itself well to benefitting from the Subscribe & Save, repeat order program.
The global market for dietary supplements works in their favor, having been worth $168 billion in 2021, and with projections to grow at a CAGR of 8.9% to reach $307 billion in 2028. The market has thrived thanks to an increasingly health-conscious consumer base in the face of obesity, and a rising geriatric population. A growing number of customers have become aware of the benefits of looking after one’s health, and how supplements can be an excellent way of achieving that.
The company’s main demographic is broad, made up of women between the ages of 25 and 54. Their average household income ranges between $50,000 and $100,000, and, over half of them are married. Their products are sourced and sold exclusively within the US, which, when combined with their FBA model, makes shipping a much quicker and efficient process. Roughly 99% of their stock is handled by Amazon, with the remaining 1% being handled by their suppliers. This saves the company the cost of managing a warehouse and its stock, and of any staff that would be needed to manage it. Additionally, it also means that the company can easily be run from a home office, minimizing the need for travel.
A new owner will be pleased to find that the business is highly turn-key, requiring only 3 to 5 hours a week to manage. The owner’s core responsibilities consist of ordering shipments, monitoring inventory, and replying to customer inquiries, with most inquiries being handled through Amazon buyer-seller messaging. The company’s only employees consist of a virtual assistant, who works as the advertising manager for the product.
The business can be scaled in a wide number of ways. For instance, they could appeal to their existing customer base by adding new SKUs, such as additional flavors or compounds. The current owner already has 2 product ideas that they’re willing to share with a buyer, which, if manufactured, could quickly grow the company’s profits.
They could also expand the product line with new, related SKUs, such as powders, chewable tablets, or other types of supplements. Another option would be to secure trademarks for their products and create new formulas to give them the exclusive manufacturing rights for more of their SKUs. Doing either would help make their products unique to their brand, and encourage customers to purchase from them over their competitors. The company could further utilize the Amazon platform by continuing to build their Subscribe & Save user base, and by expanding onto Amazon’s international websites, such as Amazon CA, UK, and AU. The latter would be very beneficial for accessing entirely new customer bases, and, in turn, substantially raise the amount of profit that they bring in.
Advertising is another way that they would be able to build their brand. They currently rely on Amazon PPC for their marketing campaign, which consists of utilizing sponsored products and videos, as well as targeting campaigns based off market research and keywords. They could improve upon their advertising by investing in PPC on other platforms, such as Google or Facebook, and by continuing to improve the SEO on their products. Developing accounts on popular social media websites such as TikTok, Instagram, and Facebook would serve as another excellent advertising method. These websites have massive user bases, and as such, provide effective ways of generating organic traffic and improving the company’s reputation. They could also develop an affiliates program or partner with influencers, which would serve as another form of advertising, and help strengthen the company’s own social media accounts.
This deal is based within a fantastically evergreen market, leaving plenty of room for scaling down the road. With the right combination of advertising, research, and additional products, the company could grow into a trusted supplier of whimsical supplements for anyone hoping to improve their health.
If you’re interested in this acquisition and the many opportunities it has in store, then contact Website Closers today to learn more from our brokers.
