Website Closers® presents a 5-year-old eCommerce Business and Amazon FBA Company that operates under 2 Brands. It has proven to be growth player in the Nutritional Supplements market. Their 60 SKUs are 100% domestically sourced within the US and made specifically for the company to sell under their brand names. These vitamins are a quick, convenient way for customers to get the nutrients they need to maintain a healthy lifestyle, as evidenced by both the thousands of positive reviews they have on their Amazon storefront, as well as the several Amazon’s Choice badges that they’ve earned by ranking well for important industry keywords. It’s clear that the quality of their supplement formulas speak for themselves.
The nature of their SKUs means that, if a customer is satisfied with their purchase, they’re likely to continue buying refills from the company whenever they run out of their favorite supplements. As such, their Repeat Customer Rate is up to 20% and growing as more and more customers subscribe to their products. Currently, they have well over 2,000 Subscribe & Save customers to their name. Combined with an Average Order Value of $24, it’s not surprising that the company’s YOY Net Profit Growth Rate sits at an astounding 188%.
Though the company sells from a variety of sales channels, such as eBay and their own official website, the bulk of their sales come from Amazon FBA. Approximately 93% of their profits are generated from Amazon alone, and with those aforementioned Amazon’s Choice badges under their belt, customers can buy from them securely in the knowledge that they’re a trustworthy brand to buy from.
Where many of their competitors require consistent paid advertising methods to get their name out there, this company has managed to see rapid growth with 100% organic marketing – NO AD SPEND! They don’t spend on PPC or actively run promotional campaigns, with the stellar reviews and rank that they’ve earned acting as the biggest draw to their products. This gives the buyer a great opportunity to grow the business, as by investing in an official paid marketing strategy on Amazon, Google, or other sites, one could drastically improve the number of customers who happen upon the company and their supplements.
Alternatively, they could focus more on bolstering their already-strong flow of organic traffic with a polished SEO campaign. The use of certain keywords, improved descriptions, and optimized product pictures would do wonders in promoting the brand in search results, and, depending on whether the buyer would prefer to handle this optimization on their own or not, can be a low-cost method of strengthening the company’s profits and customer base.
The company’s workload is currently divided between the 3 owners, alongside 1 part-time employee who helps manage shipping and the Amazon accounts. Each owner spends less than 20 hours per week operating the business, divvying up the workload amongst themselves. This work is divided as follows:
Once the buyer takes over the business, they could keep the lightweight workload that the owners have enjoyed by hiring on additional virtual staff members to cover some of these duties, which would also make room for them to focus their attention on scaling efforts.
The company is at a stage where an enterprising buyer could rapidly increase their profits with the right strategies. As mentioned before, improved advertising campaigns would be one of them, and lead to an influx of traffic and curious consumers who might be interested in trying out their products. However, the company could also implement new, high-demand products to their roster, which would make their brand more appealing to new and old customers alike. For instance, they could offer new varieties of supplements with different health benefits, or expand into gummies, powders, and other product types for customers who aren’t interested in taking pills.
They could also focus on their other, non-Amazon storefronts, and direct traffic there for more diversified revenue. The company sells on many other prolific websites, such as eBay, Walmart, and Target, which are all highly accessible and convenient places for many customers to buy from. By more actively putting these storefronts out there, the company can make their products better known to customers who prefer to purchase from these other channels.
The company also has their own Shopify websites, which the buyer could make far more profitable by investing the right resources into them. Theses websites could be advertised through both PPC and an SEO campaign and used to bolster their total D2C sales. They could also drive subscription sales up from these sites, which would boost their recurring revenue and, given how many Subscribe & Save customers they have, likely be very well-received by customers who prefer their Shopify storefronts.
The buyer may also want to consider negotiating the pricing of products with their suppliers. The company has already done so in the past for some other products, and doing so would cut down on costs and give them more revenue to spend on their other ventures.
This acquisition is a great choice for a buyer looking to supplement their portfolio with a brand in a burgeoning industry. A marketing-savvy entrepreneur would be exactly what they need to be taken to the next level, and with the right products added to their already promising roster, they could skyrocket across their various sales platforms.
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